Getting Your Investment ‘Game On’ in Stocks

How much return did you make on your investments or savings last year? Investors made an overall return of 42% on the Jamaica Stock Exchange (JSE) in 2018, according to the Exchange’s head honcho, Marlene Street-Forrest.   With such stellar performance, it is not surprising that for the second time around, since 2015, the JSE copped the top spot as the best performing stock exchange worldwide. 

It is not too late to get a piece of the ‘pie of returns,’ by investing in the stock market, through an equities-based unit trust, such as the JMMB Income and Growth Fund that gave investors over 20% return, in the last 12 months. 

An equity-based unit trust is simply a managed investment fund that is largely concentrated in stocks of companies listed on a stock exchange.  Investing like a ‘pro’ is possible with the JMMB Income and Growth Fund, managed by a team of fund managers and provides a great opportunity for an investor, with minimal knowledge of the stock market and its general technicalities, to participate in the earnings of the market. Are you now ready to take the plunge and incorporate stocks as part of your overall investment portfolio?

Before you jump into the proverbial ‘stock market investment pool,’ investing in this market is not for the faint of heart, nor those who are unwilling to take some risk. 

Now, let us explore how investing in stocks through a unit trust, such as the JMMB Income and Growth Fund, can be a win-win for you: 
•    Benefit from expertise and timely research: Unit trust funds are managed by a team of financial experts, known as fund managers, whose responsibility is to determine the best mix of assets (whether cash, stocks, real estate etc.) to maximise your  return. 
•    No guesswork: Investing in a unit trust like the JMMB Income and Growth Fund takes the guess work out of knowing what stocks you should pick, the best price to buy at, how much to invest in each stock, when to sell, hold or buy, and the daily monitoring.  Of course, you will need to do periodic checks of your unit trust account, to ensure that it is meeting your investment objective.  
•    Take advantage of opportunities quickly: A typical investor, with limited experience or focus on the market, is likely to miss opportunities and the returns that they would have offered. Conversely, the fund manager is usually in tune with the ebbs and flows in the market and can readily take advantage of opportunities as they present themselves.
•    Small Investment, Big Gains: It is a myth that investing in stocks requires large sums of money.  You can start investing with as little as J$4,000* with the JMMB Income and Growth Fund which includes: shares of blue chip companies (i.e. well-established and financially sound companies listed on the JSE) paired with cash and bonds.   The upside is, all investors - big or small - earn the same rate of return.  In the last 12 months (March 13, 2018 – March 13, 2019) the JMMB Income and Growth Fund gave investors 20.1% return. 
•    Easier Exit: Your ability to sell your shares, having met your investment objective, may be hindered by the unavailability of a buyer, leaving you locked in a waiting game. The JMMB Income and Growth Fund makes exiting the fund, or selling some of your units, easier than selling your shares on the stock market. With only 3 business days’ notice for transactions valued at over J$100,000, shares can be sold at any time.

Investing in stocks through unit trusts may provide some drawbacks, the most glaring being some individual stocks may outperforming the fund.  Although investing in the right stock at the opportune time can provide big gains, similarly poor stock picks can deplete your portfolio. As a diversified fund with a mix of varying stocks and other assets, investors are able to minimize the losses they experience over the long-term. Buying individual stocks carries greater risks than buying a fund which is typically more diversified (holds many securities which reduces the overall risk of loss).  

For the average investor with limited investment knowledge, time and experience to invest in stocks, the JMMB Income and Growth Fund may be the answer to: maximize your return, with little effort: build your portfolio; and increase your knowledge of this investment, as the benefits of this unit trust fund outweighs investing directly in the stock market as an investment beginner. You can get started today and earn more on your piece of the 'stock market pie'. 

(*Investment suggestion based on minimum purchase requirement of 200 units at March 13 selling price of J$19. 53)