Local investors cautioned against redeeming their funds

The investing public in Kumasi has been cautioned against rushing to redeem fund invested in long-term stocks.

Checks by Luv Fm at a number of investment houses indicate a drive in the number of shareholders redeeming their funds.

Majority of the investors are panicking about the depreciation in the value of stocks, especially the mutual funds.

But a lecturer at the KNUST School of Business, Newlove Asamoah says people must hasten slowly in attempts to sell out but rather take advantage of the current low price levels and buy more shares.

“When you invest, you expect to get some interest or gain, but if the prices are coming down people tend to lose confidence in the stock. But in the stock market when the prices are going down, if you have some stocks – shares, mutual funds, whatever – that is not a good time to sell out.

“So you have to wait till it picks up and when it picks up it'll go beyond how much you purchased it , so you can sell for a profit”, Mr. Asamoah advised.

He however entreats short-term investors to consider putting their money in treasury bills, which are less risky instruments.