1. What are Mutual Funds?
They are collective investment vehicles that allow investors with limited resources to own a diversified investment portfolio managed by a seasoned investment manager.

2. What types of Mutual Funds are available?
There are several mutual funds dedicated to investing in various asset classes. Mutual Funds that exist include real estate funds, fixed income funds, equity funds and money market funds. Afrinvest intends to offer a family of Funds dedicated to particular assets and securities.

3. What are the benefits of investing in Mutual Funds?

• Low entry cost
  Diversification
  Simplicity
  Liquidity

4. What is Net Asset Value per share (NAV per share)?
Net asset value per share is derived by dividing the total value of all the securities in the portfolio, less any liabilities, by the number of fund shares outstanding

5. Who should buy mutual funds?
Anybody can buy into mutual funds depending on an investor’s objectives and risk tolerance. There is a variety of mutual funds that meets various investment needs

6. What are the risks involved in investing in Mutual Funds?
The risks of investing in a mutual fund are identical to those of investing in the assets held by the fund. Therefore investment in an equity fund will have similar risks to investing in individual stocks. However a mutual fund does offer a reduction of these risks due to the diversification of holdings.

7. What are the factors that influence the performance of mutual funds?
A mutual fund is affected by the factors that influence th e underlying assets and the skill of the investment manager. In an equity fund, those factors will include the economy, and performance of the various industries and companies held by the Fund.

8. I am an aggressive equity investor. Why should I buy a mutual fund?
Taking uncalculated risk is rarely effective over the long term. However, investing with a portfolio manager looking to take informed risks in search of high returns usually pays off in the long run. A manager is plugged into the market, and unlike an individual investor has only one vocation which is picking stocks.

9. Of all the mutual funds available in the market place, why should I buy the Afrinvest Equity fund?
Afrinvest as a firm is built on a foundation of in-depth research and financial innovation. Given the firm’s pedigree and a history of success for institutional clients, Afrinvest has the best mix of service, research and management to give the investor that extra edge.

10. Are there any guaranteed returns?
The returns on the fund will be influenced greatly by the returns on the stock market.. However the skill of the manager can then be measured by their ability to maximize gains and minimize any losses.

11. What is the minimum amount accepted to invest in Afrinvest Equity fund?
The minimum initial investment in the Afrinvest fund is N50, 000 and N10, 000 for every subsequent investment.

12. How much is a unit of the Afrinvest Equity Fund?
Initially each unit will be priced at N100,. Thereafter, the price will be based on the NAV of the Fund which will be calculated and published weekly.

13. Can investments be made on a continuous basis i.e. .paying an agreed amount every month?
An automatic invest plan can be set up to make investments into the fund on a regular basis i.e., monthly, weekly or quarterly. This can be done automatically by instructing your bank or can be initiated by the client.

14. Can a client use his/her units on the Fund to act as collateral?
That will depend on the institution offering the loan.

15. Can a client use his/her certificate to buy into the fund?
Not directly. However a client can bring his/her certificates to our offices to be liquidated by our brokers. The proceeds will then be invested in the Fund and the units held by the clients duly adjusted.

16. How quickly and easily can an investor in Afrinvest Equity Fund exit and how would exit price be determined?
Investors can exit the fund at any time. The factors determining how long it will take are

• where certificates of investors are held
• the amount of time to the next valuation date.

For clients who elect to have their certificates held by the fund (and have their statements as proof of ownership), they
will receive a sum equal to the net asset value per units as of the next valuation date multiplied by the number of units they own. There will be no additional charges levied, and they should receive their funds within 3 to 10 business days depending on how and where the funds are to be delivered. For clients who have physical possession of their certificates, they will need to send in the certificates along with their redemption request. The certificates will then have to be cancelled and the client will be paid their due. However if the investor is not redeeming all holdings in a fund, the old certificate will have to be cancelled and a new one reflecting the current number of units issued.

17. Will a progress report on the fund be made available regularly? How often?
Yes, the fund’s NAV will be published on a weekly basis. A client will also receive a quarterly statement indicating their current holdings and the total value of their investment.

18. Do I pay a penalty for trying to cash out before a stipulated time?
Cashing out will be possible at any time after the allotment of such units. Units redeemed within 90 days of the purchase will attract a processing fee of 2% of the net redemption value.

19. Do I have any shareholder rights in the companies that you are invested in?
No, all the rights are vested in the fund itself and executed by the manager in the best interest of the fund.

20. How do dividends from the companies apply?
The dividend paid by the companies will be re-invested in the Fund.