Diversification key to mitigate risks – StanChart

STANDARD Chartered Bank says diversifying investments is necessary if local investors are to mitigate risks.
The bank has since called on investors to consider spreading their portfolios.
Bank executive director in charge of wealth management Stanley Tamele said while some investors have been investing in real estate and opening savings accounts, diversifying assets will go a long way in reducing investment risks.
Mr Tamele cited mutual funds, foreign corporate, sovereign and onshore bonds as some of the portfolios that provide investors with guaranteed cash flows from periodic coupon payments and reduce investment risks.
“There is need to move away from the conventional way of, for instance, opening a fixed deposit account, but have a wide suite of assets. Our society has always been known to be a consumer society and there has not been a lot of saving and those with savings earn a minimal amount but diversifying in other portfolios will hedge against risks,” he said in an interview on Friday last week.
The bank currently offers assets, including fixed income products, foreign corporate and sovereign bonds, and onshore bonds under wealth management, thus giving investors the opportunity to invest in and redeem bonds issued by the Bank of Zambia any time other than the auction date and maturity dates of the bonds, respectively.
“The solution offers a number of benefits such as instant diversification, liquidity, spreading your investment risks, and it is professionally managed to pool your money with that of other investors in a fund which is managed by a team of investment professionals,” he said.

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