Securities and investment company, Capital Bancorp Plc, has unfolded the gains of investment in fixed income securities to the officers of Federal Road Safety Corps in Lagos.
The move according to the company was part of its efforts aimed at creating awareness on investment opportunities on the Nigerian Stock Exchange.
The company said the recent interface held in Badagry, exposed the participants to the benefits of the Federal Government’s Savings Bond which has attracted many investors.
Speaking at the investment forum organized by the FRSC, the Group Managing Director and Chief Executive Officer, Capital Bancorp, Mr. Aigboje Higo, explained that investors would always have opportunities to make good returns from an array of investment outlets.
Higo, who spoke extensively on, “Maximising wealth through FGN Savings Bonds and other investment opportunities” stated that the FGN Savings Bonds provided many benefits.
He said, “Investment in the FGN Bonds is risk free, being a Federal Government’s instrument. The bond offers better returns to investors, serves as steady source of income as coupon is paid quarterly, offers capital preservation, an alternative to portfolio diversification, tax-free investment, use of investment as collateral for loans, opportunities for investment at retirement and re-investment of coupons.”
Speaking on the difference between Treasury bills and FGN Savings Bonds, Higo explained that Treasury bills had shorter tenures, ranging from 91 days to 182 days whereas the FGN Savings Bonds have duration of between two and three years.
He also stated that Treasury bills were sold via auction determined by the market forces, but noted that the FGN Savings Bonds were sold by offer for subscription with rates determined by the Debt Management Office, using prevailing market rates.
Higo listed other investment opportunities for discerning investors as fixed deposits, commercial papers, FGN Bonds, sub-national bonds and corporate bonds, among others.
He noted that there was dearth in knowledge of investment in the capital market on the part of the FRSC but assured them that the interactive session would assist in their investment decisions whenever they engage stockbrokers and other financial agents.