ARM Investment Managers: What You Need to know.

ARM Investment Managers is a Nigerian investment management company that offers a variety of investment products and services to individuals and institutions.

The company has a strong track record of performance and is known for its expertise in African markets.

Established in 1994 as an asset management firm, ARM offers wealth creation opportunities through a unique blend of traditional asset management and alternative investment services.

ARM enables businesses to thrive, and helps its clients to maximize their returns and realise their most important goals.

Products

Over the years, ARM has built a firm uniquely equipped to provide quality research, investment expertise and value-added services.

Some of the firm’s products include:

1. Money Market Fund

ARM Money Market Fund helps investors preserve their capital and generate a steady stream of income.

With the ARM Money Market Fund (ARM MMF) you get a higher interest rate than a traditional savings account.

The ARM Money Market Fund is a low–risk fund suitable for investors who have cash in their current and savings account and wish to earn higher tax-free returns.

2. ARM Ethical fund

The ARM Ethical Fund is suitable for Islamic investors who want long-term capital growth by investing strictly according to the principles of Islamic finance and ethical values.

The fund offers investors a flexible entry and exit, as well as an opportunity to invest according to core Islamic values and beliefs.

3. ARM Discovery Balanced Fund

The ARM Discovery Fund is suitable for investors who want high capital growth over the long term to meet various objectives such as paying for education, buying a property, or leaving a legacy for loved ones.

The fund offers long term wealth growth with returns above inflation. It also boasts of multiple returns through capital appreciation and dividends.

4. ARM Aggressive Growth Fund

The ARM Aggressive Growth invests primarily in equities and as such seeks to provide superior long-term protection against inflation to investors with a high–risk appetite.

The high risk of equities is lowered by also investing in fixed income securities, which provides a fairly predictable income stream and easy access to your money.

5. ARM Eurobond Fund

The ARM Eurobond Fund is an open-ended fund that invests in US Dollar denominated Eurobonds.

The Fund is authorised and registered in Nigeria as a Unit Trust Scheme under Section 160 of the Investment and Securities Act 2007 and is regulated by the Securities and Exchange Commission (SEC).

Subscribers to the Fund enjoy competitive returns on their US Dollars. The fund is more suitable for investors seeking medium to long-term capital growth.

6. ARM Fixed Income Fund

The ARM Fixed Income Fund is an open-ended, low risk mutual fund designed to help you achieve your medium to long term goals.

This Fund invests in high quality fixed income securities which includes money market instruments less than one year (Treasury Bills, Commercial Paper, Bank Placements etc.), FGN and Corporate Bonds with acceptable credit ratings and other bond issues by the DMO and other money market or fixed income securities the fund is permitted to invest in under the Trust Deed.

Accessing ARM products on nairaCompare

1. Select ‘ARM Investment Managers’

2. Read through the information provided on the ARM page to understand more about the provider, and its products.

3. Select a product.

4. Click on “Apply” to begin the application process.

5. Fill in your personal details and provide all the necessary documents.

6. Submit your application form for review and processing.

7. After successful review of your application, you will receive an email notification confirming that your application has been approved!

Things to note:

An investment in the Fund can be made by completing a subscription form and making payment into the bank account via convenient channels such as Cheque, Debit/Credit card, Quick teller, bank deposit, bank transfers, Direct Debits, and Mobile money.

The Trustees of the Fund is First Trustees Nigeria Limited a subsidiary of First Bank of Nigeria Plc.

The Trustees have a legal duty to protect the interest of the Unit-holders.

There is no maximum amount you can invest, however, the minimum initial investment is N5,000, while additional investments shall be amounts not less than N1,000 and in multiples of N1,000.

The Fund will invest between 25% – 95% of its total assets in short term government securities such as Treasury Bills, and 5% – 75% in other approved money market instruments.

The Fund’s assets are denominated in Naira and, as such, capital inflows by foreign investors who subscribe to the Fund shall be converted to Naira at the exchange rate as advised by the Fund Manager’s Bankers.

Pros of ARM Investment Managers

Here are some of the pros of ARM Investment Managers:

● Experience

ARM Investment Managers has been in operation for over 20 years and has a strong track record of performance.

● Expertise

The company has a deep understanding of the local economy and can help investors to identify opportunities that are not available to foreign investors.

● Products and services

The firm offers a wide variety of investment products and services to suit different investor needs.

The company offers mutual funds, exchange-traded funds (ETFs), and portfolio management services.

● Fees

ARM’s fees are competitive and transparent. The company's fees are lower than those of many other investment management firms.

● Regulation

ARM Investment Managers is regulated by the Securities and Exchange Commission (SEC) of Nigeria.

This ensures that the company's investments are managed in a safe and transparent manner.

● Transparency

The company is transparent about its fees and investment process. It publishes its fees on its website and provides investors with regular updates on their investments.

● Customer service

ARM Investment Managers also has a good reputation for customer service.

Overall, ARM Investment Managers is a good option for investors who are looking for a professional investment management firm with expertise in African markets.

Pitfalls in mutual fund investing

Investing in mutual funds offers numerous benefits, but there are also potential pitfalls that investors should be aware of. Understanding these pitfalls can help you make more informed investment decisions.

Here are some common pitfalls in mutual fund investing:

● High fees and expenses

Expense ratios and other fees can significantly impact your returns over time. High fees can erode your gains, making it important to choose funds with reasonable costs.

● Overlooking tax implications

Some mutual funds generate taxable capital gains when they buy and sell securities within the fund. Be aware of the potential tax consequences, especially in taxable accounts.

● Lack of Diversification:

Failing to diversify your mutual fund investments can expose you to concentrated risk. Diversification across asset classes and sectors is crucial to manage risk effectively.

● Market timing

Attempting to time the market by buying and selling mutual funds based on short-term market movements can lead to poor results. Successful market timing is difficult and often unattainable.

● Misunderstanding risk

Different types of mutual funds carry varying levels of risk. Understand the risk associated with each fund you invest in and ensure it aligns with your risk tolerance.

● Fund manager changes

A change in fund manager can impact a fund's performance and strategy. Keep an eye on any manager changes and assess their impact on the fund.

● Hidden costs

Some funds may have hidden costs, such as redemption fees or back-end loads. Carefully read the fund's prospectus to understand all associated costs.

● Lack of understanding

Investing in mutual funds without a clear understanding of the fund's strategy, holdings, and goals can lead to inappropriate investment choices.

Investing without a well-defined financial plan can result in haphazard investment decisions that don't align with your overall objectives.

To avoid these pitfalls, educate yourself about mutual funds, thoroughly research funds before investing, and consider seeking advice from financial professionals.

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