EconomyNext – The Colombo Stock Exchange (CSE) is to launch an awareness programme to provide pensioners with a sound understanding of personal financial planning to ensure their savings are invested to provide the best returns.
A series of programmes will be organised island wide through the CSE’s regional branch network to educate pensioners, a statement said.
These programmes will begin in January and continue throughout the year, providing continuous education to retired people.
The CSE said it has struck a deal with the Department of Pensions to educate retired personnel on the diverse avenues of investment available to them.
"The CSE is commitment towards ensuring that all socio-economic segments have a thorough understanding of prudent investment opportunities, in order to minimise their risks and maximise their returns," it said.
"Reaching out to the community of retired persons is an extension of this course of action to ensure that their savings are channelled in a manner that provides them the most sustainable returns."
Given the prevailing low interest rates provided by banks, investment in corporate debt and Unit Trusts is seen as a more lucrative avenue of investment, the CSE said.
"These avenues of investment provides stability with fixed rates of return," it said. "These programmes 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."
The CSE said 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.
The CSE will concentrate its efforts on inculcating sound principals of financial management within the community of retired professionals, offering a balanced overview of both the risks and returns of investment in all financial instruments.
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.