The Old Mutual Investment Group has called onto Kenyans to diversify their investment portfolios as the economy is set to recover.
The investment firm expects the economy to grow in the next 1-2 years as inflation drops, onset of rainy season and reduces prices of fuel as well as food.
“Despite inflation appearing to stabilize at 9%, it may remain elevated in the near term because oil prices are still high, and weather conditions remain unfavorable hence affecting food prices,” OMIG Kenya Chief Investment Officer Eric Karimi said.
“However, from a policy perspective a lot is happening to support farmers, and this may yield fruit, therefore the economy will bounce back not in the immediate term but gradually for over the next 12 – 18 months,” he added.
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According to the outlook’s findings, achieving stable and superior returns can be attained by investing in a diversified portfolio consisting of growth and income assets or securities as a means of spreading out risk.
“The current state of the financial markets has revealed a need to diversify one’s investment portfolio of traditional asset classes such as cash and near cash, stocks, and bonds to include other alternative assets or securities whose returns, and performance have a lower correlation with traditional investment markets,” OMIG Kenya Head of Alternative Investments Kevin Nyaga said.
“On this backdrop, investors are encouraged to look closer for opportunities in the Alternative Investments space. To date, we are seeing more demand in alternative investments like infrastructural themed private equity, venture capital and property sub-sectors such as affordable housing targeting low to mid income earners, and specialized housing such as college student accommodation, among others.”
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