Is the investment product registered with the SEC?

Does the investment look too good to be true? If it does, it is advisable to examine it more closely before investing.

Is the investment suitable for me: does it match my investment goals?

How will the investment yield returns? (Dividends? Interests? Capital gains? etc.)

Is the investment short/long term ?

What is the total cost of transactions?

How easy would it be to sell if I needed my money right away?

What are the specific risks associated with the investment?

Has the management been successful in the past?

Is the company making profit? How is its performance compared to its competitors?

Where can I get more information about this investment e.g. prospectus, the latest annual reports and account, etc.?

Question about Unit Trust Funds:

Who are the sponsors of the fund?

Who are the parties to the fund (Fund Manager, Trustee and Registrar)?

Are the parties registered with the SEC?

What is the track record of the Fund Manager and the Trustee?

Is the Fund registered with the SEC?

What specific risks are associated with the fund?

What are the investment objectives of the fund?

How does the fund perform compared to other funds?

What is the offer price?

Questions about the Operators (Broker, Fund Manager, Investment Adviser etc.):

Are they registered with the SEC? For more information contact SEC or the Nigerian Stock Exchange.

How long have they been in the business?

What is their typical client profile e.g. high networth or institutional investment?

What is the minimum amount required to open an account?

What are the transaction charges?

Having Invested What Next?

How often do I get my statements?

Do I understand the information contained in the statement?

Is the return on my investment meeting my expectations and goals?

How much is my investment worth today?

What criteria will I use to decide when to sell?

Tips

When you ask the above questions, you may wish to write down the answers you receive and what you decide to do. These can be helpful for future reference. Let your broker or investment adviser know you are taking notes. They will know you are a serious investor and may tell you more.

Ensure that you keep copies of all documents on transactions e.g. receipts on cash lodged in broker’s account, photocopies of all cheques, mandate forms etc.

Keep track of your investments by being in constant contact with the broker.

How to Handle Problems:

Act promptly!

Follow these steps to solve your problem:

Talk to your broker and explain the problem.

If the problem is still not resolved, write to the Nigerian Stock Exchange and copy the SEC. Explain your problem clearly.

For further enquiries contact investigation@sec.gov.ng