CardinalStone Director Advises First-Time Investors to Pick Mutual Funds Over Direct Stocks
By Aboki Forex —
The Group Executive Director of CardinalStone Partners Limited, Elile Olutimayin, has urged new investors to put their money into mutual funds instead of buying stocks directly without understanding market dynamics.
Speaking on the recent rally in the Nigerian stock market, she said mutual funds offer a safer entry point for beginners. They protect investors from costly mistakes that happen when people rush into a booming market.
Olutimayin stressed that investor education must remain a priority. She noted that many retail investors still lack a proper grasp of market trends, corporate earnings and investment risks.
She warned that first-time investors often buy stocks after prices have already climbed sharply. They then suffer losses when experienced investors start selling to take profits.
“Most times, you will probably buy stocks at the high point when a lot of people are trying to exit. But if you are just trying to learn and figure out what is happening in the stock market, you are probably going to stick with mutual funds,” she said.
She added that mutual funds give access to professionally managed portfolios. This allows investors to gain market exposure while slowly building their knowledge.