An intelligent financial plan entails investing your money in an appropriate combination of assets with potential to generate the income needed to achieve your goals. If you invest wisely, you can maximise the earnings on your investments.
You need to act today and think about a plan to help you achieve your financial goals which becomes a road map for your investment journey.
Majority of the people in Fiji have yet to familiarise themselves with the stock market and understand the compelling opportunities that investing in the SPSE listed companies can offer. People that understand that share prices can move up or down, it is important to remember two facts - with this additional risk, one has the potential for higher return in the long-term and secondly diversification can lower your overall risk.
Analysis show that if an investment had been done in a diversified portfolio across the board and held for a period of five years over the last decade, 60 per cent of the time the annualised return would have been over 10 per cent per annum and sometimes as high as 23.5 per cent per annum. However, investors would have experienced some loss for about 20 per cent of the time.
The SPSE is among the smallest exchanges in the world but returns from the stock market remain very attractive especially with tax free dividends from residents and no capital gains tax applicable.
In simple terms, our market fairs favourably in comparison to other investment options and has shown a long-term trend towards growth.
The key is to find stocks most suited for your investment objectives and this can be done through contacting a licensed broker or investment adviser alongside your own understanding and research on these companies that are listed on the SPSE.