Namibians remain overly risk-averse when it comes to investing, a trend that could limit long-term wealth creation, particularly among young professionals.
Speaking during a panel discussion hosted by the Young Investment Professionals Club, Cirrus Fund Managers Portfolio Manager Amy Walters said many young earners continue to favour low-risk, low-return products such as money market accounts, even when their investment horizons allow for greater exposure to growth assets.
According to Walters, this cautious attitude is driven largely by limited financial literacy, cultural pressures, and a fear of losing money.
She said many investors confuse market volatility with actual financial risk, which causes them to avoid equities despite decades of evidence showing strong returns for long-term investors.
“One of the key things I’ve observed about Namibians – and I’m sure many of you here will relate – is that we really don’t like taking risks. The moment we hear there’s even a chance of losing money, we panic. As a result, most people default to putting their money in a money market account. But in many cases, that fear prevents us from benefitting from higher-growth investment options that are more suitable for long-term goals,” she said.
Also speaking at the event, FNB’s Head of Investments, Ziggy Muinjo, said time is the most powerful risk-management tool. He noted that investing consistently over time helps smooth out market fluctuations and reduces the impact of short-term volatility. Muinjo emphasised that portfolio diversification across equities, bonds, offshore markets and currency exposure is essential for balancing risk and return.
“Another important element is diversification. Your portfolio should include offshore exposure, global accounts for currency diversification, government bonds, and equities. When one market underperforms, another may perform better, which stabilises your overall returns,” he said.
Another panellist, Old Mutual Wealth Manager Christopher Freygang, cautioned against confusing gambling with investing, pointing to the increasing popularity of sports betting among young people. He explained that unlike betting, equity investing is based on data, economic fundamentals and long-term performance trends.
“You cannot time the market, but historically, investments follow trends and respond to economic fundamentals. That’s very different from betting on Arsenal or Manchester United. The ball is round – anything can happen in sports,” he said.
