The Securities and Exchange Commission (SEC) on Wednesday disclosed that its Collective Investment Schemes increased to over N3 trillion in 2024.
The Director General of SEC, Dr. Emomotimi Agama, disclosed this during an interaction in Abuja.
He explained that collective investment schemes are a part of the market system that allows people to diversify their risk via different angles besides going straight to the companies to invest.
He said, “In the collective investment schemes, you get a bucket of shares and ask people to invest. Therefore, if you are investing through a collective investment scheme, you probably will be investing in 10 companies via 1 route as different from going to invest directly in any company.
“It reduces your risk, it diversifies your potential and of course, takes care of the ups and downs in the market whenever it does exist and it is for us a very good area for Nigerians to invest in because when you do not understand it, do not go into it. With a collective investment scheme, you do not need to understand it because someone is there to understand it for you and invest on your behalf, understanding the vagaries of the market, its dynamics and how it runs”.
The SEC DG disclosed that beyond the CIS, the capital market aided in the development of the economy through the recapitalisation exercise of banks by the Central Bank of Nigeria.