Investing in the stock market offers numerous opportunities, but selecting the right investment vehicle is essential to optimising returns while minimising risk. An ETF (Exchange-Traded Fund) is such an investment vehicle. It is a type of investment fund that is traded on stock exchanges, much like individual stocks.

The Meristem Growth ETF and the Meristem Value ETF are two outstanding exchange-traded funds (ETFs) offered by Meristem Securities Limited that are tailored to certain investing strategies. When you buy a unit of the Growth or Value ETF you’re buying a small piece of a portfolio that is a collection of diversified Growth or Value stocks.

Whether you seek growth potential or value-driven stability, these ETFs are tailored to meet your financial goals. Open-ended and passively managed, the Meristem ETF replicates the performance of the exchange-traded NGX MERISTEM VALUE AND GROWTH INDEX.

Meristem Growth ETF

Why Invest in the Meristem Growth ETF?

• Investing in the Meristem Growth ETF provides diversification across highly liquid companies qualified as growth stocks by their historical revenue and earnings, growth rate, non-cyclical nature, and potential for sustainable growth over the medium term.
• A portion of the income earned on the fund is distributed as a dividend to qualified unitholders at the end of each financial year.
• The fund is managed by a team of experienced professionals as the ETF benefits from in-depth market analysis and strategic asset allocation. This expertise is crucial in navigating the volatility often associated with growth stocks.

Meristem Value ETF

Why Invest in the Meristem Value ETF?

• The Meristem Value ETF adheres to the principles of value investing, targeting undervalued companies with strong fundamentals. These companies typically have stable earnings, solid cash flow, and attractive valuations. We conduct comprehensive research to identify stocks trading below their intrinsic value. The ETF aims to achieve steady, long-term returns by focusing on these undervalued opportunities.
• Many of the companies included in the Meristem Value ETF offer dividends, providing investors with a regular income stream. This makes the ETF an attractive option for those seeking both capital appreciation and income.
• Value stocks are generally less volatile than growth stocks, offering a measure of stability during market downturns. The ETF’s diversified portfolio further reduces risk by spreading investments across various sectors and industries.

Meristem Equity Mutual Funds (MEMF)

Equity mutual funds are suitable for a wide range of investors, from those just starting their investment journey to seasoned investors looking to diversify their portfolios. These funds are ideal for individuals seeking long-term capital growth and those who are comfortable with leveraging the inherent volatility of the stock market for superior returns.

Why invest in MEMF?

• The Equity Market Fund caters to investors willing to take more risk in exchange for higher rates of return. It is an open-ended fund concentrated on Nigerian firms and is invested in a basket of high-quality equity securities.
• Both domestic and foreign investors seeking long-term capital growth with a potential for higher rates of return are eligible to invest in this fund. Moreover, capital gains from unit holders’ redemption and dividends are tax-free.

Take the first step towards your financial goals. Contact us at [email protected] or call 0700MERISTEM for further information.