Thursday, February 19, 2015

Why You Should Invest In A Balanced Mutual Fund

Brief Insight To A Balanced Fund

Balance funds invest in a mix of equities, money market, real estate and fixed income securities. They attempt to balance the aim of achieving higher returns against the risk of losing money. Most of these funds follow a formula to split funds among the different types of investments. They tend to have more risk than fixed income funds, but less risk than pure equity funds. Aggressive funds hold more equities and fewer bonds, while conservative funds hold fewer equities relative to bonds.

Choosing between equity and debt is difficult in the best of times. To get over this problem, one can invest in a balanced mutual fund. The main objective of these funds is to offer you the best of both worlds while limiting your exposure to the inherent risk accompanying these securities.

Why Invest When The Equities Market Is Currently Bearish?

If your balanced mutual fund is yielding a lower return than you anticipated because of the current bearish market, you may be tempted to cash in your fund units and invest your money elsewhere. The rate of return of other funds may look enticing, but be careful; there are both pros and cons to the redemption of your funds in a bearish market. Let's examine the circumstances in which liquidation of your fund units would have negative consequences.

In a bearish market, most stocks see their share prices fall, often substantially. One of the safest strategies, and the most extreme, is to sell all of your investments and either hold cash or invest the proceeds into much more stable financial instruments, such as short-term government bonds. By doing this, an investor can reduce his or her exposure to the stock market and minimize the effects of a bearish market. But by so doing, an investor would likely move out of the market at a loss position. The inverse position would be to be involved in investing in larger companies with strong balance sheets and a long operational history, which are considered to be defensive stocks. The reason for this is that these larger and more stable companies tend to be less affected by an overall downturn in the economy or stock market, making their share prices less vulnerable to a larger fall. 

The savviest investors know that when stocks are underpriced is the best time to buy. In a bearish market as most stocks are undervalued the price of a balanced fund is also underpriced. Undervalued often is confused with cheap, but the two concepts are very different. A stock/fund is undervalued when the price does not accurately reflect the prospects, assets or revenue stream of the company/entity. Just because a stock/fund has a low share price does not make it a bargain. Price alone cannot be used to determine if a stock/fund is undervalued.

Even the best countries, companies, industries, and sectors fall out of favor from time to time. A fully-informed investor, with a firm understanding of the situation, can calmly stride into a turbulent market and buy up shares/units at a fraction of their intrinsic value. Nigeria’s current economic and politically turbulence has made it unfavorable to investors in the short term but at the long run, we believe that investors’ confidence will be restored and with that share prices of stocks would also elevate thereby increasing unit price of balanced funds. This brings to bear the need to buy now when prices are at its lowest.

Buying or selling a mutual fund isn't something you do impulsively, without a great deal of thought and consideration. Remember that you originally invested in your mutual fund because you were confident in it, so make sure you are clear on your reasons for letting it go. And that to be a savvy investor means you know when to buy and what to buy.

Monday, February 16, 2015


Today I will be showing you another new addition to my closet, a white dress I got at a discount. At first, I was so going to pass up on the dress as I came there to buy a corporate jumpsuit but when I realized it was on sales nothing could stop me.

See my take on the dress in the work place:

 What do you think Yay or Nay?

Friday, February 13, 2015

Pink Playsuit

Good afternoon all and Happy Weekend, today I would be doing something different. I would be showing you a weekend party outfit of mine. So this last Friday, I and my cousins hit the town for fun and we really had fun.

About the outfit, I have had this playsuit since last year but never got around to wearing it but this Friday for our night out I wore it with my killer pink heels. See the outcome below:

The light was not the best but at least you get to see what I wore. Hope you are all preparing to have a mind blowing valentine's day and this playsuit would be a perfect addition to your wardrobe in time for the celebration.

What do you think?

Wednesday, February 11, 2015


Am so sorry that I have been unavailable, I have been swamped these days that I basically only get time to sleep in the night which is mostly mornings anyway. Although I am still really swamped, I knew that I needed to post on my blog. It has been way too long and I have missed my baby and my readers.

I have to skip back to work now but I will leave you guys with this snapshots. Hope you enjoy it.

 I still have a whole lots of other photos I have taken so far to post and they are currently in my draft. I will try to upload them as the days go by.

What are your thoughts, would love to read them. By the way I just got this jumpsuit and I am loving it.