Why should I consider equities?

Equity investors purchase shares of a company with the expectation that they’ll rise in value in the form of capital gains, and/or generate capital dividends. If an equity investment rises in value, the investor would receive the monetary difference if they sold their shares, or if the company's assets are liquidated and all its obligations are met. Equities can strengthen a portfolio’s asset allocation by adding diversification.

What are the potential benefits of equity investments?

• The main benefit from an equity investment is the possibility to increase the value of the principal amount invested. This comes in the form of capital gains and dividends.
• An equity fund offers investors a diversified investment option typically for a minimum initial investment amount.
• If an investor wanted to achieve the same level of diversification as an equity fund, it would require much more – and much more manual – capital investment.
• Investors may also be able to increase investment through rights shares, should a company wish to raise additional capital in equity markets.

Why invest with PKF CAPITAL

• PKF Capital offers a broad selection of equity offerings across index funds and all the listed and non listed companies in Lesotho
• PKF Capital is the market leader in business advisory and corporate finance in Lesotho
• PKF Capital offers competitively priced products across equity market exposures.

What are popular investment strategies?

PKF Capital offers three distinct approaches to enhanced equity investments:

• Portfolio management service
• Dedicated advisory service
• Research and analysis
• Market predictions and expert advice

How can I invest in equities?

To participate in equity investment or trading one should open an investment account with a stock broking company. PKF capital is a registered stock broker with Maseru stock Markets (MSM)
PKF dedicated staff will assist in the entire procedure of opening account, investments, trading, etc

What risks are associated with equity investments?

While there are many potential benefits to investing in equities, like all investments, there are risks as well. Market risks impact equity investments directly. Stocks will often rise or fall in value based on market forces. As a result, investors can lose some or all of their investment due to market risk.
Other types of risk that can affect equity investments include:

• While there are many potential benefits to investing in equities, like all investments, there are risks as well. Market risks impact equity investments directly. Stocks will often rise or fall in value based on market forces. As a result, investors can lose some or all of their investment due to market risk.
  Other types of risk that can affect equity investments include:
  • Credit risk: a company could be unable to pay its debt.
  • Foreign currency risk: a company’s value could change because of shifts in the value of different international currencies.
  • Liquidity risk: a company could be unable to meet its short-term debt obligations.
  • Political risk: a company’s returns could suffer because of a country’s political changes or instability.
  • Economic concentration risk: a company’s value could drop because it’s too concentrated in a single entity, sector or country (putting all its eggs in one basket). If the value of that factor drops, the company will get hurt disproportionately.
  • Inflation risk: a company’s value could drop because it’s hurt by rising inflation, thus diluting its worth.