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Sunday, February 01, 2015 - 5.30 GMT

Colombo Stock Exchange to educate pensioners on sustainable financial planning


The Colombo Stock Exchange (CSE) is to launch an awareness programme to provide pensioners with a sound understanding of personal financial planning.

The CSE entered into a Memorandum of Understanding (MoU) with the Department of Pensions; to educate retired personnel on the diverse avenues of investment available to them.

The CSE says it is committed towards ensuring that all socio-economic segments have a thorough understanding of prudent investment opportunities, in order to minimize their risks and maximize their returns. Reaching out to the community of retired persons is an extension of this course of action to ensure that their savings are channeled in a manner that provides them the most sustainable returns.

In light of the prevailing low interest rates provided by Banks, investment in Corporate Debt and Unit Trusts is seen as a more lucrative avenue of investment. These avenues of investment provide stability with fixed rates of return.

Educational professionals from the CSE will concentrate their efforts on inculcating sound principals of financial management within the community of retired professionals. The educational programs conducted will offer a balanced overview of both the risks and returns of investment in all financial instruments.

A series of programs will be organized, island wide, through the CSE's regional branch network to educate pensioners. These programs will begin in January and continue throughout the year, providing continuous education to retired persons and building on the principals of personal financial planning.

These programs are seen as a hand-holding exercise and will focus on educating investors on the merits of investing in Corporate Debt and Unit Trusts. It is thought prudent to focus on these investment products, in light of the risk averse nature of investors within an older demographic.

Investment in Corporate Debt and Unit Trusts is seen as a more stable avenue of investment, as opposed to direct investment in equity that provides higher returns, with lower risks and therefore the education programs will be targeted at the audience that is seen to gain the highest benefit from such an investment philosophy.

Pensioners will be provided with educational material that will offer an introduction to the various investment products available, the merits and demerits of each and the basic tenants of investment such as maintaining a conservative risk profile and diversification of investment portfolios.

The program is seen as an ideal way of presenting pensioners with a new avenue of investment; which offers them greater engagement and control, of the method in which their funds grow and earn returns.






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Last modified: February 02, 2015.

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