Making an investment in you

Placing YOU first

You’ve worked so hard to land a job and earn an income; long hours, sleepless nights, missed events or opportunities and not to mention the years of studying. So wouldn’t it be great if your money could now work just as hard for you? You can do so by employing a strategy that is both simple and complex—“investing”.

Now, wanting to invest is as easy as 1...2...3 but following through with the action is where it becomes more complex as one can be easily deterred by financial jargon, messy charts, and a multitude of instruments which can lead to confusion. But don’t despair! The good news is that there are investment solutions available that allow you to easily cut the complexity and skip to the returns.

Mutual funds

The most accessible of these solutions is a mutual fund. A mutual fund is a managed pool of funds which are utilised to purchase various securities in different asset classes. These include investments in various local and foreign equities, bonds and near cash securities. In essence, mutual funds can provide you with access to an optimal portfolio that maximises returns and minimises risk, allowing your hard-earned income to work for you. Based on its construct, mutual funds allow investors to start with relatively low minimum amounts. The minimum amount required to open an Abercrombie or an Immortelle Fund, for example, is $500.

Where to get started?

Investment goals and time horizon

You must firstly establish your investment goals. Are you interested in dividend income, capital gains or a combination of both? This decision will be largely based on what the money will be used for. Will it be used to pay for short-term needs like seasonal shopping or an upcoming vacation? If yes, then it would be unwise to place this money in a fund where principal value can fluctuate widely, so a fund like the Abercrombie, where the principal amount remains the same, may be best suited to you.

Our El Tucuche Fund is ideal for your medium-term goals, generating returns on a quarterly basis which can be either redeemed or reinvested to further grow your personal portfolio. As at February 28, 2021, the El Tucuche one-year return stood at 2.69 per cent.

For longer-term goals such as financing your child’s education, a new business venture and retirement planning, our Immortelle Income and Growth Fund would be the better fit for you.

This Fund is a balanced fund (meaning it invests in both fixed income and equity) that aims to provide higher long-term returns.

Don’t forget risk tolerance

The primary goal of investing is to make money on your investment. But there is a trade-off—you can’t generate a return without taking on risk. A prospective mutual fund investor must determine personal risk tolerance and the answer will vary typically based on age, net worth and experience.

Risk tolerance is often seen as reflecting age, with younger people having a higher propensity for risk by virtue of having a longer time horizon to survive market volatility. Mutual funds more suited to them, are those with heavier weightings in equity, like the Immortelle Fund.

That said, regardless of age, those with a higher net worth and more so-called liquid capital to spend can afford to have greater risk tolerance than those with less cash.

If your investment experience is limited or non-existent, you are likely to be risk averse.

Don’t worry, this is perfectly normal. It takes time and experience to get comfortable with the idea that you are taking on risk.

You can start with allocating a larger share of your funds to a more conservative mutual fund, and smaller share to a balanced or more aggressive fund. Get some experience under your belt before taking on more risk and/or committing more capital.

When to get started?

The answer to when you should start investing is very simple—as soon as possible, assuming:

• You are able to manage your debt obligations and

• You’ve built an emergency fund to provide a minimum of three months’ basic income should you lose your job.

Generally speaking, however, by investing at an early stage in life, you learn a pattern of financial independence and discipline. An early investment teaches the real difference (and benefit) between investments and savings. Never think young age is a barrier to making an investment, as you are never too young to invest. The small sum of money invested now will grow and put more money in your pocket in the future.

Finally, and perhaps most importantly, seek the advice of reputable and experienced investment professionals, especially if you are a new investor. You can contact our wealth management team at First Citizens for more advice on how you can make your money work for you!


AMERICAN aircraft manufacturer Boeing has branded one of its Max 8 aircraft with Caribbean Airline’s (CAL) logo.

The image was captured and circulated on social media.

With its contract for 12 Max 8 aircraft from the Chicago-based manufacturer still in effect, CAL told the Sunday Express on May 7 by e-mail

THE Confederation of Regional Business Chambers says, while it’s commendable the Central Bank is making it easier for financial institutions to reintroduce loan deferrals and interest rate reductions for customers, it’s unclear how the interest rate reduction will be applied.

The Central Bank is making it easier for financial institutions to reintroduce loan deferrals and interest rate reductions for customers who are facing hardships as a result new measures introduced as a result of the spike in Covid-19 cases and deaths.

RUM and bitters producer, Angostura Holdings Ltd, yesterday reported a 45.5 per cent increase in its after-tax profit, for the first quarter of its 2021 financial year.

Angostura profit for the period ending March 31, 2021, was $19.06 million, which was 45.5 per cent higher than the $13.09 million the Laventille-based manufacturer reported for the same period in 2020.

MAJORITY State-owned National Flour Mills (NFM) yesterday reported a 62.4 per cent decline in its after-tax profits for the first quarter of its 2021 financial.

NFM’s after-tax profit for the three months ended March 31, 2021 totalled $2.63 million, down from $7.01 million the grain miller reported in 2021.

WEST INDIAN Tobacco recorded after-tax profit of $91.4 million for the first three months of its 2021 financial year, which was 12.8 per cent lower than for the same period in 2020.