From First-Time Investors to Pros: Moses Rutahigwa on Mutual Funds for Every Goal
- kitsodickson
- Mar 25
- 3 min read
Updated: Apr 9
Moses Rutahigwa, Standard Chartered Bank’s Head, Wealth, and Retail Bank
Moses Rutahigwa, Standard Chartered Bank’s Head, Wealth, and Retail Bank shares with us how easy it is to get started and make your money work for you though mutual funds.
Q: Please explain to us how a mutual fund works, in this case relating to your offering.
A: Key Features of Mutual Funds
Pooling of Resources: Investors buy shares in the mutual fund, and their money is combined with that of other investors. This allows for greater purchasing power and diversification.
Professional Management: Fund managers analyse and select the securities in the fund's portfolio, making investment decisions based on research and market conditions.
Liquidity: Investors can typically buy or sell shares of the mutual fund on any business day at the current net asset value (NAV), making it a relatively liquid investment.
Q: What type of investor is best suited for your mutual funds?
1. First time investor
2. Investors looking to create multiple streams of income
3. Portfolio diversification
Q: Can you provide an overview of your mutual fund offerings and how they fit within the current market landscape?
A: There are several types of mutual funds, including:
Equity Funds: Invest primarily in stocks.
Bond Funds: Invest in bonds and other fixed-income securities.
Balanced Funds: Invest in a mix of stocks and bonds.
Money Market Funds: Invest in short-term, low-risk securities.
Index Funds: Aim to replicate the performance of a specific market index.
Q: How can I invest in your mutual fund? How much do I need?
A: Minimum lump-sum investment amount is $2000(approx. BWP30k) and $200 (approx. BWP3k) as a recurring savings plan.
Q: What securities are included in your mutual funds and how do you select them?
A: Fund factsheet as well as prospectus will show securities
Q: Who manages the mutual fund and how is it managed?
A: Mutual funds are managed by the Investment fund House managers.
Typically taking an annual management fee (Most fund managers take between 1-1.5% Pa)
Q: Can you explain the fee structure of your mutual funds and how it impacts investor returns? If possible, compared to other investment instruments like unit trusts or retail bonds.
A: Most funds will charge annual management fees however it is important to note other fees such as sales load which is a commission paid.
Some funds also charge a performance fee and all this will affect investors ROI.
Q: What is the typical holding period for assets within your funds?
A: The typical holding period for assets within a mutual fund vary depending on the investment strategy and objectives.
Equity funds typically have a longer holding period of 3-5 years whereas bond funds holding short term bonds may have duration of 1-3 years.
Q: Has there been any instances where fund performance did not meet expectations? How did you address that with investors?
A: Customers are constantly engaged on the performance of their funds through monthly investment statements shared by the bank.
In instance where a fund is not performing what typically would happen is a client may switch to a different fund with guidance from banks financial advisor.
Q: How do you adapt your investment strategies in response to changing market conditions?
A: Diversification i.e. geographic as well as asset allocation. Re-asses investor risk tolerance every 24 months (update of customer investment profile).
Q: What steps do you take to protect investors’ interests?
A: Transparency and disclosure. Regular portfolio reviews
Q: What innovations or trends are you seeing in the mutual fund industry that you think will shape the future?
A: AI and use of Robo Advisors
Q: Are there any specific sustainability initiatives or goals your funds are pursuing?
A: We do offer ESG funds
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