Experts in the financial sector have emphasised the need for diversification of investment portfolio as measures to guard against economic downturn.

They also urged people to lean towards foreign dominated securities to safeguard investments against Naira depreciation.

This was disclosed at Moneyrise conference 2022, titled: ‘How to invest safely and successfully in 2022’ organised by Risevest, over the weekend in Lagos.

Vice President, Energy Investment, Platform Capital, Dalu Akabogu, on the economic outlook for 2022, projected high inflation for the year.

He noted that for the first time in about 30 years, the highest inflation in the U.S. has occurred and whatever happens in the U.S. trickles down to other countries.

He also called on people to embark on safe investments, saying, “If you are investing and investing for a long term, I think that’s a better position to take. If you want to take a short term horizon to invest this year, you probably won’t get all the benefits.”

He added that more stocks would be undervalued this year, but added that it is a great opportunity to also invest in them.

Founder, Wealthmotley, Solafunmi Oyeneye, said though things are expected to get bad, it is the best time for investments.

She however added that one could add Exchange Traded Funds (ETFs) to their stock portfolio.

She urged people to embark on diligent research before making any investments.

“Break down your investments into portions so you can spread it across various sectors. You need to understand the various classes, the risk involved and know how to apportion the finances. Know your risk threshold and adjust accordingly,” Oyeneye said.