Why should the public invest in capital markets?

  • Source of raising long term funds,
  • Investors approach the market to create wealth through investing in instruments traded on the market (e.g. capital appreciation and dividend payment)
  • Diversification of Investments – Investing in the capital market is a way of diversifying one’s investment portfolio as one can invest in a number of different securities thereby reducing the risk of investing
  • Guaranteed of investor protection – When one invests in capital markets and deals with licensed entities, he or she is guaranteed of investor protection as the market is highly regulated
  • Safe custody of securities – An investor can choose to lodge his/her securities with a licensed custodian and eliminate the risk of losing the share certificates
  • Access to professional advice and management of securities through the use of licensed Investment Advisers and Managers who have the expertise in researching in many different investment opportunities

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