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Kampala, Uganda | THE INDEPENDENT | In an era marked by economic volatility and rapid technological change, Old Mutual Investment Group Uganda (OMIG) has reaffirmed the critical role of diversification in building resilient investment portfolios.
Godfrey Bukomeko, Investment & Financial Adviser at Old Mutual, emphasized in a statement that spreading investments across asset classes, sectors, and geographies remains the most effective strategy to mitigate risk and capitalize on growth opportunities.
“Market volatility is no longer an occasional challenge—it’s a constant,” Bukomeko said. “Diversification isn’t just about avoiding losses; it’s about positioning portfolios to withstand downturns while capturing long-term growth.”
The firm’s latest insights highlight lessons from past crises, including the 2008 financial crash and the 2020 pandemic sell-off, where diversified portfolios outperformed concentrated ones.
Bukomeko noted that during the COVID-19 market collapse, investors exposed to defensive assets like gold and fixed-income instruments recovered faster than those reliant solely on equities.
Old Mutual’s approach integrates dynamic strategies, such as risk parity adjustments and thematic diversification, to align with emerging trends like digital transformation and sustainable investing. Their flagship products, including the Umbrella Unit Trust Fund and Dollar Unit Trust Fund, are designed to balance risk tolerance with financial goals.
Looking ahead, Bukomeko underscored the growing importance of alternative assets and technology-driven strategies.
“As geopolitical tensions and inflation reshape markets, diversification will be indispensable. We’re leveraging tools like AI and expanding into non-traditional assets to future-proof our clients’ portfolios,” he added.
For investors navigating uncertainty, Old Mutual’s message is clear: disciplined diversification is the cornerstone of financial resilience and growth.
