Why Investment Trusts are a Smart Choice for Nigerian Investors with Wigmore Trading

Are you a Nigerian investor looking to make smart financial decisions and maximize your returns? Look no further than investment trusts with Wigmore Trading! In this blog post, we’ll delve into why investment trusts are the perfect choice for savvy investors in Nigeria. Get ready to discover the benefits of investing with Wigmore Trading and how it can help you achieve your financial goals. Don’t miss out on this opportunity to secure your future wealth – read on to find out more!

Introduction to Investment Trusts and Wigmore Trading

Introduction to Investment Trusts and Wigmore Trading

Investment trusts have been around for over a century and are an important part of the investment landscape in many countries. They offer investors the opportunity to pool their money together with other investors, allowing them to access a wider range of investments than they would be able to on their own. In this section, we will explore what investment trusts are and how they work, as well as introduce you to Wigmore Trading – a leading investment trust company in Nigeria.

Investment trusts are collective investment vehicles that are set up as public limited companies (PLCs). These companies raise money by issuing shares, which can then be bought and sold on stock exchanges. The money raised is then used by the trust’s fund manager or management team to invest in a portfolio of assets such as stocks, bonds, real estate, or private equity.

One key feature of investment trusts is that they are closed-ended funds, meaning that there is a fixed number of shares available. This means that unlike open-ended funds such as mutual funds or unit trusts where more shares can be created or redeemed based on demand from investors, the number of shares in an investment trust remains constant. As a result, their share prices are determined by market demand rather than the value of their underlying assets.

Wigmore Trading is one such closed-ended investment trust company based in Nigeria. Established in 2013, it has quickly become one of the most reputable and successful players in the Nigerian financial market. With its core values centered around integrity and excellence, Wigmore Trading has built a strong reputation for delivering consistent returns to its shareholders through its diversified portfolio strategy.

As a listed company on the Nigerian Stock Exchange (NSE), Wigmore Trading offers retail investors an efficient way to access diversified portfolios typically available only to institutional investors. By investing in Wigmore Trading’s shares on the NSE, individual investors can gain exposure to high-quality assets across various sectors and industries, reducing their risk through diversification.

Investment trusts are a smart choice for Nigerian investors looking to invest in a diverse range of assets. And with Wigmore Trading’s track record of success and commitment to ethical and transparent practices, it is an ideal partner for individuals seeking long-term growth opportunities in the Nigerian market. In the following section, we will delve deeper into the benefits of investing in Wigmore Trading and how it can help Nigerian investors achieve their financial goals.

Benefits of Investing in Trusts with Wigmore Trading

When it comes to investing, there are a plethora of options available in the market. One such option that is gaining popularity among Nigerian investors is investment trusts. And with Wigmore Trading, these trusts offer even more benefits for investors.

1. Diversification: One of the key benefits of investing in trusts with Wigmore Trading is diversification. By pooling together funds from multiple investors, trusts can invest in a wide range of assets such as stocks, bonds, and real estate. This helps spread out the risk and minimizes the impact of any single asset underperforming.

2. Professional Management: Trusts are managed by professional fund managers who have extensive knowledge and experience in the financial markets. These managers make informed decisions on behalf of investors and constantly monitor and adjust the trust’s portfolio to maximize returns.

3. Accessibility to Global Markets: With Wigmore Trading’s investment trusts, Nigerian investors have access to global markets that they may not be able to access on their own due to various barriers such as high minimum investment requirements or lack of knowledge about foreign markets.

4. Regular Income: Many investment trusts offer regular income payments through dividends or interest payments from their underlying assets. This can provide a steady stream of income for investors, making them an attractive option for those seeking regular cash flow.

5. Liquidity: Unlike other forms of investments such as real estate or private equity, investment trusts provide liquidity for investors as they can be bought and sold on stock exchanges like shares at any time during trading hours.

6.Ongoing Monitoring and Reporting: As part of their fiduciary duty, Wigmore Trading regularly monitors and reports on the performance of its investment trusts to keep investors updated on how their money is being managed.

7.Tax Efficiency: Investment trusts are also known for their tax efficiency compared to other types of investments like mutual funds or unit trusts because they do not incur capital gains taxes when buying or selling assets within the trust.

8. Low Initial Investment: With Wigmore Trading’s investment trusts, investors can start with a relatively low minimum investment, giving them access to quality and professionally managed portfolios that may have been otherwise unattainable due to high upfront costs.

Investing in trust funds with Wigmore Trading offers numerous benefits for Nigerian investors looking to diversify their portfolio and maximize returns. It provides access to global markets, professional management, regular income payments, liquidity, tax efficiency, ongoing monitoring and reporting, and a low initial investment requirement. These factors make investment trusts a smart choice for any investor looking to achieve long-term financial goals.

– Diversification of portfolio

Diversification of portfolio is a crucial aspect of successful investing, and it refers to the practice of spreading your investments across different asset classes, sectors, and geographical regions. This strategy helps mitigate risk and maximize returns by minimizing the impact of market fluctuations on your overall portfolio.

Investment trusts are an ideal vehicle for achieving diversification in your investment portfolio. These funds operate by pooling money from various investors and investing it in a wide range of assets such as stocks, bonds, real estate, and private equity. By investing in a diverse range of assets, investment trusts offer built-in diversification that can be difficult to achieve with individual stock picking or other types of investments.

One major advantage of using investment trusts for portfolio diversification is their ability to invest in multiple markets globally. As Nigeria’s economy continues to grow and become more integrated with the global economy, it is essential for investors to have exposure to international markets. Investment trusts provide access to a wider range of opportunities in developed markets such as Europe, US, and Asia while also tapping into emerging markets like China and India.

Furthermore, investment trusts offer sector-specific diversification by investing in different industries such as technology, healthcare, consumer goods, energy, etc. This allows investors to spread their risk across various sectors instead of being heavily exposed to one particular industry.

Another benefit of using investment trusts for diversification is their professional management team. These funds are managed by experienced professionals who have extensive knowledge about the market trends and can make informed decisions on behalf of investors. With their expertise, they can effectively manage risks associated with specific investments and ensure that the trust’s portfolio remains well-diversified at all times.

Additionally, many investment trusts have a long-term approach when it comes to managing their portfolios. They do not make quick changes based on short-term market movements but rather focus on long-term growth potential. This strategy helps reduce volatility within the trust’s holdings while providing stable returns over time.

Diversification of portfolio is a crucial aspect of successful investing, and investment trusts offer an excellent opportunity for Nigerian investors to achieve this. By investing in a diverse range of assets across different markets and sectors, these funds provide built-in diversification, professional management, and long-term growth potential for investors. With Wigmore Trading’s selection of reputable investment trusts, Nigerian investors can confidently build a well-diversified portfolio that can withstand market fluctuations and potentially earn attractive returns over time.

– Professional management

Professional management is a key factor to consider when choosing an investment option, and it is one of the main reasons why investment trusts are a smart choice for Nigerian investors with Wigmore Trading. Investment trusts are managed by professional fund managers who have the necessary expertise and experience to make informed investment decisions on behalf of the trust’s shareholders.

One of the benefits of professional management in investment trusts is that it provides investors with access to a diverse range of assets. The fund managers responsible for managing investment trusts have extensive knowledge of different markets and industries, allowing them to invest in a wide variety of assets such as stocks, bonds, real estate, and private equity. This diversification helps spread risk across different sectors and reduces the impact that any single asset can have on the overall performance of the trust.

Moreover, professional management also ensures that investment decisions are made based on thorough research and analysis. Fund managers constantly monitor market trends, economic indicators, company financials, and other factors that can affect their investments. With their expertise and resources at hand, they can identify promising opportunities while avoiding potential risks. This active management approach sets investment trusts apart from passive investments like index funds or exchange-traded funds (ETFs), where investments simply track an index without any active decision-making.

In addition to this, professional management provides investors with peace of mind knowing that their investments are being actively managed by experts. As individuals may not always have the time or resources to stay updated on market conditions or conduct thorough research before making an investment decision, having professionals handle these tasks can be extremely valuable. They take on the responsibility of managing the trust’s portfolio so that investors don’t have to worry about it.

Professional management also brings transparency to investment trusts. Fund managers provide regular updates on the trust’s performance through reports and meetings with shareholders. This level of transparency allows investors to understand how their money is being invested and make informed decisions about whether they want to continue holding their shares in the trust.

Professional management is a crucial aspect of investment trusts that makes them a smart choice for Nigerian investors with Wigmore Trading. It provides access to diverse assets, informed decision-making, peace of mind, and transparency – all of which are essential for successful long-term investments. With professional management at the helm, investors can feel confident in their trust’s ability to deliver positive returns over time.

– Lower costs and fees

Investment trusts are becoming increasingly popular among Nigerian investors, and for good reason. They offer a range of benefits that make them a smart choice for those looking to grow their wealth. One of the most significant advantages of investment trusts is lower costs and fees.

When investing in traditional mutual funds or other types of pooled investments, investors often face high management fees and administrative costs. These can eat into their returns and significantly impact the overall performance of their portfolio. However, with investment trusts, this is not the case.

Unlike mutual funds, investment trusts are closed-ended funds that have a fixed number of shares available for purchase. This means that they do not need to constantly buy or sell underlying assets to meet investor demands, resulting in lower transaction costs.

Additionally, investment trusts do not have the same regulatory requirements as mutual funds, which can lead to higher compliance costs. As a result, investors can expect to pay lower annual charges when investing in an investment trust compared to other types of pooled investments.

Another factor contributing to lower costs and fees for investment trusts is their ability to leverage economies of scale. By pooling together large amounts of capital from multiple investors, these funds can negotiate better deals on brokerage commissions and asset management fees than individual investors could on their own.

Moreover, unlike actively managed mutual funds that often charge higher management fees due to the active buying and selling involved in managing the fund’s portfolio, many investment trust managers follow a passive approach. This means they aim to track a market index rather than actively pick stocks or assets based on market trends. As such, they incur fewer trading expenses and pass on these savings to investors through lower fees.

Nigerian investors who choose Wigmore Trading’s Investment Trusts can enjoy the benefit of low-cost investing while still gaining exposure to diverse portfolios managed by expert fund managers. With lower costs and fees associated with these investments, Nigerian investors can maximize their returns without sacrificing quality or expertise.

– Potential for higher returns

Potential for higher returns is one of the key reasons why investment trusts are a smart choice for Nigerian investors with Wigmore Trading. Investment trusts are known for their ability to generate higher returns compared to other traditional forms of investments such as savings accounts, fixed deposits, and even stocks.

One of the main factors that contribute to the potential for higher returns in investment trusts is their structure. Unlike mutual funds or unit trusts where the fund manager has a limited pool of assets to invest in, investment trusts have a closed-ended structure. This means that they have a fixed number of shares which do not change, regardless of how many people buy or sell them. As a result, the fund manager has more flexibility in choosing which assets to invest in, leading to potentially higher returns.

Moreover, investment trusts can also invest in a wide range of assets including equities, bonds, real estate and private equity. This diversification allows them to spread out and manage risk more effectively compared to individual stocks or other forms of investments. By investing across multiple asset classes and sectors, they can reduce exposure to any one particular market or company.

Another factor contributing to the potential for higher returns is the active management style adopted by most investment trust managers. This means that they constantly monitor and adjust their portfolio based on market conditions and opportunities. They can take advantage of undervalued assets or quickly respond to changes in economic conditions.

Additionally, investment trusts often have lower fees compared to other types of investments like mutual funds or managed accounts. The lower fees mean that more money stays invested in your portfolio rather than being paid out as fees. Over time this can make a significant difference in overall returns.

Due diligence plays an essential role when selecting an investment trust as it can help identify those with strong track records and experienced managers who consistently deliver high returns over time. Nigerian investors with Wigmore Trading can access research reports on various investment trusts before making any decisions.

Investment trusts offer Nigerian investors with Wigmore Trading the potential for higher returns due to their unique structure, diversification opportunities, active management style, and lower fees. However, like any investment, it is essential to do thorough research and seek professional advice before making any decisions.

Types of Investment Trusts Offered by Wigmore Trading

Wigmore Trading offers a wide range of investment trusts to cater to the diverse needs and preferences of Nigerian investors. These investment trusts are designed to provide investors with exposure to various asset classes, including equities, fixed income securities, real estate, and more. In this section, we will discuss the different types of investment trusts offered by Wigmore Trading in detail.

1. Equity Investment Trusts:
Equity investment trusts are funds that invest in a portfolio of stocks or shares listed on the stock market. These trusts offer investors an opportunity to diversify their portfolio by investing in different companies across various industries. By investing in equity investment trusts, investors can benefit from potential capital appreciation and dividends from the underlying stocks.

2. Fixed Income Investment Trusts:
Fixed income investment trusts primarily invest in debt securities such as government or corporate bonds, treasury bills, and other fixed-income instruments. These trust funds provide steady income through interest payments while also allowing investors to diversify their portfolio beyond equities.

3. Real Estate Investment Trusts (REITs):
Real Estate Investment Trusts (REITs) are collective investment schemes that own and operate income-generating real estate properties such as office buildings, shopping malls, apartments, etc. By investing in REITs offered by Wigmore Trading, investors can earn regular rental income along with potential capital appreciation from the underlying properties.

4. Commodity Investment Trusts:
Commodity investment trusts allow investors to gain exposure to commodities such as gold, oil, agriculture products without directly owning them physically. These trust funds invest in commodity derivatives or futures contracts which track the performance of specific commodities.

5. Private Equity Investment Trusts:
Private equity investment trusts provide access to private companies’ investments that are not available on public exchanges like stocks or bonds. These investments usually have longer lock-in periods but offer higher potential returns compared to traditional investments.

6.Leveraged/Geared Investment Trusts:
Leveraged or geared investment trusts use borrowed funds to invest in securities. These trust funds aim to provide higher returns by leveraging the fund’s assets, but it also carries a higher risk as any losses are magnified.

Wigmore Trading offers a diverse range of investment trusts that cater to different risk appetites and investment objectives. Investors can choose from these options based on their financial goals, investment horizon, and risk tolerance levels. It is essential for investors to consult with a professional financial advisor before making any investment decisions.

– Equity trusts

Equity trusts, also known as stock trusts, are a type of investment trust that primarily invests in stocks or shares of publicly traded companies. They allow investors to pool their money together and have a professional fund manager make investment decisions on their behalf.

One of the main benefits of investing in equity trusts is diversification. By pooling funds from different investors, the trust can invest in a wide range of stocks across various industries and sectors. This helps to spread out risk and protect against market fluctuations. Additionally, since the fund manager is experienced and knowledgeable about the market, they can make strategic decisions to maximize returns for investors.

Another advantage of equity trusts is their accessibility. As mentioned before, these trusts allow smaller individual investors to access a diversified portfolio that would otherwise require a large amount of capital if invested individually. This makes it an attractive option for Nigerian investors looking to enter the stock market but may not have enough funds to build their own diverse portfolio.

Furthermore, equity trusts offer liquidity as they are listed on exchanges and can be easily bought or sold like any other stock. This provides flexibility for investors who may need quick access to their funds in case of emergencies or changes in financial goals.

In terms of costs, equity trusts tend to have lower fees compared to actively managed mutual funds as they do not require frequent trading by the fund manager. This results in higher net returns for investors over time.

It is important for Nigerian investors considering equity trusts through Wigmore Trading to understand the risks involved with this type of investment. Like any stock investment, there is always a risk associated with market fluctuations which could result in losses. However, by diversifying their investments through an equity trust, these risks are mitigated compared to investing solely in individual stocks.

Equity trusts offer Nigerian investors an opportunity to participate in the stock market with less risk and more convenience than traditional methods such as buying individual stocks directly or through mutual funds. With the guidance of a professional fund manager and the benefits of diversification, equity trusts can be a smart choice for those looking to grow their wealth through the stock market.

– Fixed income trusts

Fixed income trusts, also known as fixed interest trusts or bond trusts, are a type of investment trust that focuses on generating steady income for investors through fixed-income securities such as bonds, loans, and other debt instruments. Unlike equity trusts that invest in stocks and shares, fixed income trusts primarily invest in debt securities issued by governments, corporations, or financial institutions.

One of the main advantages of investing in fixed income trusts is the stability and predictability of returns. These investments offer a predetermined rate of return over a specific period of time. This makes them an attractive option for investors who are seeking regular income streams without taking on too much risk. Additionally, most fixed income trusts have lower volatility compared to equity investments, making them more suitable for risk-averse investors.

Another benefit of fixed income trusts is their diversification potential. By investing in a portfolio of different types of bonds and other debt instruments from various issuers and industries, investors can spread out their risk and potentially minimize losses if one issuer defaults. This can be especially beneficial for Nigerian investors who may not have access to a wide range of investment options within the country.

Furthermore, many fixed income trust managers actively monitor and manage the underlying investments in their portfolios to ensure they meet the fund’s objectives. They may also have expertise in credit analysis to assess the creditworthiness of potential issuers before including them in the fund’s portfolio. This level of professional management can help reduce risks associated with individual investments.

Fixed income trusts can also provide tax advantages for Nigerian investors. In some cases, these investments may offer tax-exempt returns or lower tax rates compared to other types of investment incomes such as dividends from stocks.

However, it’s important to note that like any investment vehicle, there are risks associated with fixed income trusts. One major concern is interest rate risk – when market interest rates rise, bond prices usually fall; this negatively impacts the value of the underlying assets held by the trust. Additionally, there is always a risk of credit default by the issuers of the bonds in which the trust has invested.

Fixed income trusts can be a smart choice for Nigerian investors looking for stable income and diversification in their investment portfolio. They offer potential tax advantages, professional management, and lower volatility compared to equity investments. However, it’s crucial to carefully consider the risks involved and seek advice from a financial advisor before making any investment decisions.

– Real estate trusts

Real estate trusts, also known as real estate investment trusts (REITs), are a type of investment trust that focuses on investing in income-generating properties. These properties can include commercial buildings, apartment complexes, and shopping centers.

One of the main benefits of investing in real estate trusts is the potential for consistent and reliable income. REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This means that investors can expect regular payments from their investment, providing a steady stream of passive income.

In addition to regular dividends, real estate trusts also offer the opportunity for long-term capital appreciation. As the value of the underlying properties increases over time, so does the value of your investment. This makes REITs an attractive option for investors looking for both income and growth potential.

Another advantage of investing in real estate trusts is diversification. By pooling funds with other investors, REITs allow access to a variety of properties and locations that may not have been possible otherwise. This helps mitigate risk and provides exposure to different economic sectors and geographic regions.

Additionally, real estate trusts provide a level of transparency that other forms of real estate investing may not offer. As publicly traded companies, REITs must adhere to strict financial reporting standards and disclosure requirements. This allows investors to make informed decisions based on accurate information about the performance and management of the trust.

Investing in real estate trusts through Wigmore Trading offers even more benefits for Nigerian investors. With Wigmore’s expertise in global markets and diversified portfolio options, investors can access a wide range of high-quality property investments from around the world without having to navigate complex international regulations or currency conversions.

Furthermore, Wigmore Trading’s focus on sustainable investments aligns with the growing trend towards socially responsible investing (SRI). Many REITs have incorporated environmental sustainability measures into their operations such as energy-efficient buildings or renewable energy sources. This not only benefits the environment but can also lead to cost savings and potentially higher returns for investors.

Real estate trusts present a compelling option for Nigerian investors looking to diversify their portfolios and generate steady income. With Wigmore Trading’s expertise in this area and commitment to sustainable investments, they are a smart choice for those seeking opportunities in the global real estate market.

How to Invest in Trusts with Wigmore Trading?

Investment trusts, also known as closed-ended funds, have become increasingly popular among Nigerian investors in recent years. With their unique structure and potential for high returns, it’s no wonder that many are turning to trusts as a smart choice for their investment portfolio. If you’re considering investing in trusts with Wigmore Trading, you’ve come to the right place. In this section, we will guide you through the process of how to invest in trusts with Wigmore Trading.

Step 1: Educate Yourself

The first step before making any investment is to educate yourself about the product and its features. Investment trusts are different from other types of investments like mutual funds or stocks. They are closed-ended funds that invest in a diverse range of assets such as equities, bonds, real estate and private equity. Unlike open-ended funds where shares can be bought or sold at any time based on the fund’s net asset value (NAV), investment trust shares trade on stock markets just like ordinary company shares.

Step 2: Choose Your Trust

Wigmore Trading offers a variety of investment trusts to choose from based on your risk appetite and investment goals. You can browse through our website or consult with one of our experienced advisors to find the trust that best fits your needs.

Step 3: Open an Account

Once you have chosen your trust, the next step is to open an account with Wigmore Trading. This can be easily done online by filling out a simple form and providing some basic information like your name, address, and contact details.

Step 4: Decide How Much to Invest

Before making any financial decision, it’s important to consider how much money you can afford to invest without negatively impacting your financial stability. Our advisors at Wigmore Trading can help you determine the right amount based on your personal circumstances.

Step 5: Place Your Order

After opening an account and deciding how much to invest, it’s time to place your order. You can do this through our online platform or by contacting your advisor. Once your order is placed, you will receive confirmation and the trust shares will be purchased on your behalf.

Step 6: Monitor Your Investment

Investments require monitoring and regular review to ensure they are performing well and aligned with your goals. At Wigmore Trading, we provide regular updates and reports to help you keep track of your trust’s performance.

Investing in trusts with Wigmore Trading is a straightforward process that offers potential for high returns. With our experienced team and diverse range of trusts, we strive to make the investment journey as smooth as possible for our clients. So why wait? Start investing in trusts with Wigmore Trading today!

– Opening an investment account

Opening an investment account is the first step towards building a successful investment portfolio with Wigmore Trading. It allows you to access a wide range of investment opportunities and start your journey towards financial growth.

To open an investment account with Wigmore Trading, you will need to follow a few simple steps. First, you will need to visit our website and click on the “Open an Account” button. This will take you to our online account opening form.

The form will require personal information such as your name, address, date of birth, and contact details. You will also need to provide proof of identification and proof of address documents as per regulatory requirements. These documents can be submitted online or physically at one of our branches.

Once your application is completed and all necessary documents are provided, it will be reviewed by our team for compliance purposes. If everything is in order, your account will be opened within 2-3 business days.

After your account has been opened, you can fund it through various methods such as bank transfers or debit/credit card payments. Our team will guide you through the funding process and ensure that your investments are made efficiently.

When opening an investment account with Wigmore Trading, there are a few factors that we consider:

1) Risk Tolerance: We understand that every investor has a different risk tolerance level based on their financial goals and personal circumstances. Therefore, we offer a variety of investment options ranging from low-risk income funds to high-risk growth funds.

2) Investment Horizon: The duration for which you want to invest also plays a crucial role in determining the type of investments suitable for you. Whether you are looking for short-term gains or long-term wealth accumulation, our team can assist in creating a well-diversified portfolio tailored to your needs.

3) Financial Goals: We believe that every investor should have specific financial goals in mind before starting their investment journey. Our experienced advisors can help align your investments with your goals and provide regular reviews to track progress.

Opening an investment account with Wigmore Trading is the first step towards achieving your financial aspirations. With our expertise, diverse investment options, and user-friendly platform, we are committed to helping Nigerian investors make smart choices for their wealth creation.