Most people know that investing is a good idea. However, most people lack the time, knowledge, skills, discipline, or desire to manage their portfolios consistently over many years. This is why an investment agent is invaluable.
An agent is an individual with investment knowledge or experience, who works in collaboration with a stockbroker to deepen participation in the capital markets. The result is a win-win-win for the investor, the agent, and the stockbroker. How so?
First, it is a win for an investor who partners with an agent. The investor will receive professional, personalized service. Mwamba Capital is an investment agent, and we personally know all our clients. We know their investment portfolios, their goals, and their risk profile. This personalized service can be the difference between investment success and failure.
Second, the investment agency model is a win for the agent. Since the agent earns a percentage of the brokerage commission, individuals with investing experience can tap into an additional income stream. The business is scalable, and does not require significant capital, since the stockbroker provides most of the infrastructure necessary for opening and maintaining the client’s account.
Lastly, the agency model is a win for the stockbrokers. The agents bring in new clients, leading to higher brokerage revenues. The cost of acquisition (to the stockbroker) of these new clients is typically low. Since the agent deals directly with their clients, stockbrokers can lower their employee costs.
The stockbroker-agency model is therefore beneficial to investors, agents, and stockbrokers. Mwamba Capital Limited is a registered investment agent. We have a combined 30 years experience investing in the Nairobi Stock Exchange. If you have any questions about investing in the NSE, please contact us. We would like to partner with you on your investing journey.