SEC warns fund managers against sale of guaranteed products

Director General of the Securities and Exchange Commission (SEC), Rev. Daniel Ogbarmey Tetteh has warned licensed fund managers against the sale of guaranteed products.

Speaking at the launch of two mutual fund products by First Finance Corporation, the SEC boss charged fund managers to uphold the regulations of the regulator so the financial market regains confidence and attracts more prospective investors.

“It’s important for investors to bear in mind that licensed fund managers are not supposed to sell guaranteed products or products that promise a specified return over a specified period of time. The investor public is encouraged to alert the Commission if they should encounter any licensed fund manager flouting this directive,” he emphasized.

Meanwhile, Managing Director of First Finance Company, Gloria Akoto lamented the low investor culture in Ghana. She is confident balanced mutual funds like the Elite and Financial Independence Mutual Funds will go a long way to ensure wealth creation and financial inclusion in the long term.

The Financial Independence Fund, is an emergency Fund which aims at investing in high quality Investment grade fixed income securities that will provide security and liquidity for investors in emergencies such as temporal loss of income.

The Elite Mutual Fund on the other hand is a dual Retirement and Educational Fund that will invest in a combination of Equities, and Fixed Income Securities across the globe. The objective of the Fund is to provide growth in the medium to long-term and to ensure that investors have a comfortable retirement and also have adequately prepared towards their wards college education.

Mrs. Akoto, in a presentation said the two offers proposes to raise a total subscription of GH¢400,000 between September 25th and October 16th 2019.

The Financial Independence Fund has an initial minimum subscription of GH¢200 and thereafter a minimum of GH¢100 to top up. The Elite Fund on the other hand has an initial minimum subscription and top up of GH¢100.