GAIN ACCESS TO US FINANCIAL MARKETS BY INVESTING IN MUTUAL FUNDS

By: Vernique Henfield, CPA - Senior Accountant, RF Bank & Trust

Vernique Henfield, a Certified Public Accountant and Media Correspondent obtained a Bachelor of Science in Accounting from Barry University with honors. After her journey as a student navigating the halls, her financial career led her to gain experience in Audit and Investment Banking. She is also a member of the Bahamas Institute of Chartered Accountants.?

The fireworks are done, and the confetti has settled. 2022 – a new year to make sure your investments keep your money at work. Are you a goal-setter? Whether that is your preference or not, making more money this year is never a bad idea.

Due to the economic impact of COVID-19, the Bahamian and Barbadian financial communities experienced suspension of access to foreign exchange which impacted investment currency purchases over that past 2 years. If you were in the Cayman market, this wasn’t a challenge and you can regularly and easily invest in?USD opportunities such as these. For Bahamian and Barbadian investors, though the restrictions have been eased since then, the process to receive approval from Central Banks in these markets remains impractical for the majority of individual investors due to the fees imposed by these institutions.?

?...you still have the option to gain access to US and global financial markets by investing in a local currency international?mutual fund.

So, what does that mean for you? As an individual investor, with less than $100,000 to invest, you still have the option to gain access to US and global financial markets by investing in a local currency international?mutual fund. As you may know, a mutual fund is an investment vehicle that pools investors’ funds to invest in securities like stocks, bonds, and other assets. A local currency international mutual fund allows you to invest in US, European and Asian securities without having to get approval from the Central Bank.

Mutual funds in general provide several advantages such as:

• Investment decisions are made by an experienced, knowledgeable Investment Manager.
• Your money will be at work earning more interest than a chequing or savings account.
• Investors can enjoy a diversified portfolio with both equity and debt securities, which provides income in the form of capital appreciation, dividends, and interest payments.
• There is ease of account setup, affordable minimum requirements, and access to financial markets.

Investing in a mutual fund is a great way to utilize your money and an easy introduction into the world of investing. Here are three more simple tips for persons to consider before investing:

1. Be sure to set a financial goal.
2. Consider your risk appetite as well as your desired timing of return.
3. Seek advice from a professional Investment Advisor.

Let 2022 be the year you decide to keep your money at work!

If you’re ready to start investing in international mutual funds, or have more questions, please email:?[email protected]?or call:

Bahamas:?603-6000

Barbados:?435 1955

Cayman:?746-6010