With investor confidence currently at an all-time low, making a good investment decision has now become a herculean task. Considering the news regarding numerous failed ‘’investment schemes and fund management firms’’, fixed income investments aside from Ghana government securities have lost their appeal as it is now more prudent to seek the safety over higher returns.

This however should not be the case as there are still remnants of fully licensed and properly run investment companies and fund managers still in existence. The onus however lies on the investor to decipher which institutions fall within this category. So the big question remains. Where do I invest in times like this?

Going forward, Investors are encouraged to do their own research before investing in any institution. Try to understand what you are investing in as this will help you to fully appreciate the associated risks and rewards. Word-of-mouth marketing by family and friends (except they are investment professionals) cannot entirely be relied upon as in most Ponzi schemes those who get in early always get paid until the cash outflow begins to exceed the inflows, these are obvious pitfalls to be avoided going forward. Seek advice from the regulators and avoid investments promising extremely high returns at no risk. The Government of Ghana’s 91-day treasury yield can be used as a base return to assess those being offered by investment firms.

 It is my firm believe that Collective Investment Schemes (CIS) are now the way to go with regards to investing. These investment vehicles pool investor funds together and invest in a myriad of investments thus literally sharing the risks and rewards to all the investors in the pool. A good balance of these investments will certainly give some return higher than what is offered by government’s short term securities.