The Nigerian Stock Exchange (NSE) in conjunction with Fund Managers Association of Nigeria (FMAN); Association of Stockbroking Houses of Nigeria (ASHON) and The Central Securities Clearing System (CSCS), have launched the NSE Mutual Fund Trading and Distribution Platform.
There are two reasons why the trading platform is essential to Nigerians right now.
- The Mutual Fund trading platform will bring together market participants to facilitate electronic transactions with seamless interaction between NSE, CSCS Plc, Fund Managers and Brokers Dealers.
- Investors will have the benefit of a single view of their mutual fund investment and ease a variety of transactions like subscription, redemption, cancellation etc.
Several experts have praised the move, saying it will provide a solution that will enhance visibility for the listed mutual funds and promote financial inclusion while stimulating retail investor participation in the market.
This also reinforces NSE commitment to provide market professionals, issuers, fund managers and investors with a reliable, efficient and an adaptable exchange hub in Africa, to save and to access capital.
Through this platform investors can pool funds into a chosen basket of securities which have proven to be a veritable means to optimise returns and reduce risks.
Many expert traders believe that this marks yet another milestone for the Nigerian capital market and that it will serve as a step towards improving the level of financial inclusion in Nigeria by giving investors varieties of investment products.