Business

FSDH Research advocates long-term investment strategy in equity market

Published

8 years ago

February 14, 2018

By Chioma Obinagwam

FSDH Research, a subsidiary of FSDH Securities Limited, has recommended that investors maintain long-term investment strategy in the equities market.

“This will help to hedge against portfolio losses associated with short-term stock price volatility,” the research company disclosed.

“Our analysis of historical returns show that investors make good returns in the equity market if they invest in stocks that have strong fundamentals and maintain a long-term view. An investor who maintains a long-term strategy will earn capital appreciation, cash dividend and/or bonus over the investment horizon,” it continued.

Analysis of the yearly returns of the equity market as measured by the Nigerian Stock Exchange All-Share Index (NSE ASI) between 2008 and 07 February 2018, FSDH Research noted, show that the market recorded both losses and gains during the period; adding that despite that the equity market depreciated in more years than it appreciated, some stocks recorded returns in excess of 1,000 per cent.

FSDH Research also urged investors to engage their investment manager before they invest in the equity market.

“The investment manager will create an equity portfolio for the investor based on his investment objectives. The client will also benefit from the experience of the investment manager,” the Research firm noted.