Capital market experts advised investors to inject funds into securities considering the audit report and portfolio of a company.
“The decision should be data driven. If you invest in a good place, returns will keep coming to the investor. Savings certificates have the potential to double in eight years. On the other hand, care must be taken to see how much invested money can be doubled within a short period of time,” said Shakil Rizvi, former president of Dhaka Stock Exchange (DSE) at a seminar on Saturday.
Rizvi advised the investors to come with one fourth of savings as the market is a vulnerable place.
“If an investor has savings worth Tk 5 million, the capital market investment should be not more than Tk 1 million. The remaining Tk 4 million should be invested in a safe place," he said.
Rizvi added, "However, if you invest in a safe place, the amount of money decreases. I recommend investing and trading simultaneously. Long-term investment in low-priced shares will yield profits. The desired profit margin should be 25 percent.”
Chittagong Stock Exchange (CSE) director Mohammed Nasir Uddin Chowdhury, VIPB Asset Management CEO Shahidul Alam and Edge AMC CEO Ali Imam were also in the panel discussion, chaired by IDLC Investments managing director Moniruzzaman.
Mohammed Nasir Uddin Chowdhury said the investors should not pay heed to rumors and emotions while investing in the capital market as there are many underpriced shares in the market.
IDLC Investments managing director Moniruzzaman said that the new investors should focus on sustainable platforms like government securities and bonds to avoid risks.
Shahidul Alam claimed that there is no risk in government securities while the investment in savings certificates has no liquidity.
“Treasury bills and bonds can be sold at any time. Liquidity is currently possible through stock exchanges. It remains to be seen what the public sector investment will yield after tax. But there is no risk in savings bonds. So savings should be followed by investment in other sectors,” he said.
Ali Imam said the investment should be made considering the current marco-economic situation like inflation and other pressure in the money market.
“Inflation in our country is very high. Companies whose governance and management are good should be invested in shares. Besides, the interest rate of bank loans has increased. In such a situation companies with high debt will face challenges,” he said, making a call upon the investors to keep trust in the capital market. More than 35 companies participated in the capital market expo which began on Thursday.