NSE urged to develop potentials in mutual funds
· By introducing market makers
· Liberalise its process
The management of The Nigerian Stock Exchange (NSE) has been called upon to assist the development of the mutual funds in the nation’s capital market by introducing Market Makers for it as well as liberalising its entire processes
The Managing Director of APT Securities and Funds Limited, Mallam Garba Kasimu Kurfi who gave the advice during an interview with Business247News in Lagos at the weekend, said the there is great potentials for mutual funds in the Nigerian capital market, but that there is the need for it to be assisted.
Hear him: “For the mutual fund if you look at it, before the end of last year, we had hit one trillion compared to our market capitalisation of around N12 trillion. That means we’ve reached 8% this is a stage that we’ve never envisaged.
“More funds are coming and what I want the Exchange to do is to ensure these mutual funds have market makers so that the buyers at any given time they want to exit, they can exit. Once they make it like equities, I can tell you there would be more activities because the investors are wiser now.
“They want to be sure they are guaranteed and don’t forget in this mutual funds, some are dollar form so they can hedge against the inflation, edge against the devaluation and why would you invest your money and get it in the dollar form than in the mutual funds?
“So, the mutual funds are coming and they are coming with different products at different rates. I believe the Exchange needs to ensure that there is more trading activities in the market by liberalizing the mutual funds markets so that anywhere you can buy and sell not necessarily that you have to deal with the issuer.
“What hinders mutual fund is that if a mutual fund is issued by a particular house, you would have to deal with that house if you want to buy or sell. We want The Exchange to make it open so that you can work into the market buy and sell just as people are now buying Federal Government Savings Bond and Sukuk through the equities market and they can sell through the equity market. So, if this applies to the mutual funds, we will see more activities in that sector.
