Sovereign Finance Company Limited (SFL) has held its first webinar of the year, titled “Sustainable Investment Strategies for Changing Times.”
The webinar featured top management of the firm with prominent finance and business acumen. It delved into emerging trends in the investment landscape and the importance of adapting investment strategies to evolving market dynamics.
Mr Olusola Dada, Managing Director, SFL, noted in his presentation that in today’s rapidly changing environment, investors must stay informed and agile to successfully navigate uncertainties and optimise investment portfolios.
He argued that “spreading investments across various assets or asset classes is crucial to reducing risk.” This approach, he remarked, lessens the impact of a decline in any single investment, especially during uncertain times like economic downturns or market volatility.
The MD of Sovereign Finance recommended four sustainable investment areas, namely defensive sectors, diversified portfolios, real estate investment trusts (REITs), emergency savings, and liquid assets.
According to Mr. Dada, “Investors should consider investing in defensive sectors that are less sensitive to economic downturns, such as healthcare, utilities, and consumer staples. These sectors tend to have more stable demand for their products and services regardless of economic conditions.” In addition, investors should “invest in diversified portfolio products that spread investments across multiple asset classes, thereby reducing risk by spreading exposure across different types of investments and market segments.”
He revealed that in uncertain economic times, it’s equally essential to maintain an emergency fund consisting of liquid assets such as cash, savings accounts, and short-term deposits. Having readily accessible funds can provide a financial buffer in case of unexpected expenses, job losses, or economic downturns, helping to avoid the need to liquidate long-term investments at inopportune times.
Mr. Dada further noted the diverse investment objectives of investors, ranging from capital preservation to retirement planning and socially responsible investing (SRI). He stressed the necessity for investors to clearly define their objectives, regularly review their financial goals, and adjust their investment strategies accordingly to align with evolving needs and circumstances.
On strategies for sustainable investments, Sovereign Finance recommended navigating uncertainties with diversification. Mr. Temidayo Osanyintade explained that diversification is a proven investment strategy that involves spreading investments across different assets or asset classes to reduce risk.
In his words, “By diversifying your investments, you spread risk across various assets, reducing the impact of a decline in any single investment. During uncertain periods, such as economic downturns or market volatility, having a diversified portfolio can help cushion the impact of adverse events. Diversification allows investors to capitalise on opportunities across different sectors or markets,” he added.
Following the presentation, Mr Dada, along with Mr Osanyintade, answered questions from the participants at the webinar, which was expertly hosted by Mrs Kehinde Smith, further encouraging investors to remain proactive in their approach to investment and to seek professional guidance when needed.
Sovereign Finance Company Limited is a leading financial services provider with a prime desire to promote trailblazing financial & investment solutions to customers in different sectors of the Nigerian economy through innovative and bespoke products across investments, loans, and leases and extensive expertise to provide impactful financial advisory services and professional guidance to achieve desired objectives.
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