Expert Advises Investors to Embrace Financial Literacy Education
An investment expert has called for investment literacy education for the general population so that people can understand all aspects of any investment, with the ultimate goal of identifying possible investment risks, earning more income, and reducingunexpected expenses or losses.
Mr. James Adeniyi, a Financial Adviser at Owotorose Agency,gave the advice during the departmental seminar of the Department of Banking and Finance, Covenant University, where he delivered a lecture titled ‘The Dilemma of an Uninformed Investor’.He said it was important that potential investors seek quality information to grow their investments for better life because money, in itself, was fleeting in nature, and it took an astute and knowledgeable mind not to fritter it through bad financial attitude.
He noted that one could not do business without encountering risk, but through shrewd and cursory review of an enterprise, they could be minimized. “Risks are likely to reduce income, value of assets and net returns,” he stated.
Mr. Adeniyi identified some measures that investors could adopt with a view to minimising attendant risk in investment. These included combination of risks and return in appropriate proportions, diversification throughholding more than one investment and getting a mentor or a trusted investment adviser.
In addition, he suggested that there was the need for individuals to evolve personal core values centered on their dreams, determination, attitude, leadership and passion, which would regulate their investment conduct, if they must emerge as successful investor.
The Guest Speaker noted that certain factors like personal income, current investment and tax burden, economic situation, investor’s attitude to risk and individual status such as age, marital status, number of children, amongst others were vital to every investment decisions that potential investor must consider in choosing investment. Furthermore, he averred that ranking by inspection of cash flow, payback period of the capital outlays and average rate of return on investment were key elements in the valuation process of any investment plan.
Mr. Adeniyi advised the gathering that sourcing for investment information was vital if, as an investor, one desired to be a success in one’s investment endeavours. He reiterated the importance of keeping abreast of developments by becoming avid consumer of stock exchange bulletin,government publications, newspapers, periodicals and journals, finance houses publications, published company accounts, advisory and investment services bulletins.
He concluded by pointing out the significance of time management in relations to urgency and importance of making investment decision, as ill-advised or wrong investment timing couldresult in a dangerous outcome. “Keep sending money on mission through profitable investments and when prosperity comes, do not use all of it,” he added.