Small investors should pool funds together

Small investors have been challenged to pool their resources together and invest through fund managers if they are to reap meaningful rewards, analysts have said.

An analyst from Imara Zimbabwe said chances for people benefiting from investing small amounts, especially on the equities, were 40%.

“Unit trusts are the best option for small investors as the minimum amount required is not much compared to other investments, and also that the fund managers will monitor the market on their behalf,” said the analyst.

Economic commentator John Robertson said investors should choose their investment wisely if they were to stand a chance of benefiting from investment.

He said investors should also look at the financial institutions that they would be investing in as not all of them were on a sound footing.

“Most of the shares and properties that are bought today can be expected to rise in price if business and economic conditions improve,” said Robertson.

“This kind of investment calls for much more active hands-on involvement than simply buying shares or placing funds on deposits.”

Another analyst from the Zimbabwe Stock Exchange said investors in the country had limited investment options besides the local bourse as there was little activity on the money market.

A local analyst based in Harare said people should embrace the culture of saving anything regardless of the cash crisis situation that the country is currently facing.

“Investing in unit trusts, gold funds and buying shares is critical because the economy is an aggregate of what happens at micro level be it family, individual and household levels,” said the analyst.

He said it was the role of the government to create a good environment for local investors first and then for foreign investors.

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