“A potential investor must conduct proper due diligence, which must involve but not limited to background check-up, and if possible contact the Central Bank to ensure all legal fulfilments and licenses had been done for the said investment product,” Mrs. Ramat Ebella Ellis, an Investment Banker has stated.

She said to conduct an investigation for a potential investment one must look at the product to confirm all facts, and demands and review all financial records, past company performance, plus anything else deemed material.

Mrs. Ellis who is also an Investment Analyst, therefore, called for upscaling of public education on demands in the economic sector as the financial literacy rate among Ghanaians was low, “we need to raise the public’s interest in financial-related issues, especially investment and also as means to protect potential investors from fraudsters”.

“Financial knowledge activism is critical as the nation maps up strategies to attract and develop the investment sector of the economy,” Mrs. Ellis who is an Investment Advisor to the Centre for Greater Impact Africa (CGIA) stated at the Ghana News Agency Tema Industrial News Hub Boardroom Dialogue platform.

Speaking on the topic, “Investment and sustainable development,” which was monitored by the Communication for Development and Advocacy Consult (CDA Consult) at Tema, Mrs. Ellis said potential investors especially small-scale investors must take into consideration a diversity of elements when performing due diligence on a stock.

She mentioned that the potential investor must be interested in the company’s capitalization, revenue, valuations, competitors, management, and risks; “by taking the time to perform due diligence on a stock before making a purchase, you will be better equipped to make a better decision that aligns with your overall investment strategy”.

She said some people ignorantly attribute investments to riches mainly due to the lack of financial understanding of the benefits and ways to invest irrespective of one’s income level.

Mrs. Ellis who is also a Financial Planner noted that investment was for everyone and it was the best way of securing the future for personal sustained development stressing that, “investment is all about what you can do with what you have, it is earmarking money for the future with the hope that it will grow over time.”

Giving some easy ways to invest, she said “it was okay to start small, as one does not need to have a lump sum to start investing as even small amounts could help start the journey of future bigger development”.

The Financial Analyst said, “the fact remains that you must put money away for later years or face an uncomfortable situation in the future”.

She encouraged the public to consider investing for longer periods; and urged the potential investors to scout comparing the rates of banks for high-yielding savings accounts with reasonable risk as well as taking advantage of other bank products.

Mrs. Ellis who is also the Founder of Girls With Purpose Foundation (GWP) cited some bank products to be considered for investment as treasury bills, fixed deposits, cocoa bills, bonds, trust accounts, shares, and mutual funds among others.

The CGIA Advisor explained that while treasury bills were government initiated, fixed deposits were generated by banks for investment, adding that the public could use the interest rate of treasury bills to do their comparison of the various investment available before launching into one.

She reminded Ghanaians that the higher the returns, the higher the risk involved and, therefore, based on recent happenings in the financial and non-banking sector one should undertake due diligence on high-yield investments.

She encouraged the public to think about diversification by investing in different available avenues including land, properties, buildings, and real estate among others.

Mrs. Ellis also indicated that investment could also be in the form of contributions towards retirement, education, and business explaining that parents could save for their children and hand it over to them to serve as a backbone for them to go into entrepreneurship when they grow.