Bavina Sookdeo
In light of the evolving post-covid19 investment climate, many people are looking to bolster their financial portfolios and make informed investment decisions.
Business Day spoke to several institutions on their financial products and services to help people achieve their investment goals and secure their financial future.
Additionally, the financial institutions were asked how they are embracing digital transformation, upcoming innovations, technologies and changes in service delivery.
The Unit Trust Corporation (UTC), a key player in the country's financial landscape, emphasised the importance of sustainable financial planning.
With the prospect of some people receiving backpay and potentially depositing large sums, the question of how to effectively manage newfound wealth arises.
UTC offered its advice on how to manage this.
"If you have any high-interest debt, such as credit-card balances or personal loans, consider using a portion of your lump sum to pay it off. This can provide an immediate return on investment by saving you money on interest payments. Establish a budget to ensure you are managing your expenses effectively. Knowing your spending habits can help you allocate your lump sum wisely and avoid overspending," UTC said.
UTC added that investments should be based on one's financial goals and risk tolerance.
"A good long-term goal is saving for your children’s future education or your own retirement. Both these goals require a medium- to long-term investment vehicle with a growth component. It is important to be disciplined and leave the funds invested."
In assessing the investing landscape locally, UTC remains optimistic about the market's potential.
"The recent listing of the $400 million National Investment Fund (NIF2) bond on the TT Stock Exchange further underscores the promising future of the investing landscape. With an impressive individual investor oversubscription rate of 184 per cent, this event highlights a robust investor appetite and confidence in the local market. Such enthusiasm bodes well for capital market development, paving the way for increased participation and accessibility for investors."
Market volatility, which refers to the constant changes in the prices of investment options like stocks and bonds, influenced by factors such as economic fluctuations and global events, can significantly impact investment outcomes. Additionally, geopolitical risks, including trade tensions and regulatory changes, may add another layer of complexity to investment decisions.
Staying informed about global economic trends and developments is equally vital for effective risk management. By monitoring macroeconomic indicators, geopolitical events and market sentiment, investors can anticipate potential risks and opportunities, allowing for timely adjustments to investment strategies.
[caption id="attachment_1049142" align="alignnone" width="1024"] UTC executive director Nigel Edwards. FILE PHOTO - Jeff Mayers[/caption]
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