What Is EPA¢K?

EPA¢K is a long term collective investment fund established by Databank in October 1996. EPA¢K pools money in different amounts from different people for investment primarily in shares listed on the Ghana Stock Exchange (GSE). The name EPA¢K was coined from the first names of the initial five investors in the fund. EPA¢K sets out to help individuals build capital over time. Long term may mean different things to different people in different circumstances. For EPA¢K long term is anywhere from three years onward. EPA¢K is neither a savings nor a current account. It is an investment account which yields returns in terms of capital growth.

Why You Should Invest In The Stock Market

You should invest in the stock market if you want to combat the effects of inflation and achieve higher returns on your capital in the long term. Historically, the stock market has yielded higher returns to investors. If you had kept GH¢10.00 simply locked up in a safe since December 1990, inflation would have eroded its purchasing power to just GH¢1.4085 by the end of December 1998.

If you had invested the same sum in treasury bills in December 1990, it would have increased in value to GH¢105.1100 (with income reinvested) by December 1998. If you had invested GH¢10.00 in shares and left it invested for the same 8 year period, it would be worth GH¢192.2088 (adjusted for reinvestment of net dividends).

Why EPA¢K?

Investing in shares entails its own unique risks. EPA¢K is structured to help reduce the risks associated with investing in shares because of the strength in numbers. Any risk is spread and shared by all the contributors so the impact on any one individual contributor is minimised. EPA¢K is able, courtesy of the mobilised funds, to invest in more securities on the GSE and thereby reduce risk through diversification. EPA¢Koffers you access to a full time experienced professional investment manager who is dedicated to helping you achieve capital growth in the long term.

What Can EPA¢K Be Used For?

The principal investment objective of EPA¢K is to achieve superior capital growth in the long term. EPA¢K can serve a wide range of investment objectives such as providing for pension plans, building capital for future needs, seed capital for a business, saving for the purchase of a home or providing for a child's education.

How Can You Invest In EPA¢K?

You may invest either by making a lump-sum payment or through a regular investment plan. The minimum initial lumpsum investment you can make is GH¢50.00. Under the regular investment plan, you build your investment by regularly purchasing EPA¢K shares to a minimum value of GH¢5.00 monthly. There is no maximum amount you can invest.

You can purchase EPA¢Kshares by cheque, cash or bank transfer. How Can You Sell Your Investments? To sell all or part of your investment, you only need to send written details of the instructions to Databank Asset Management Services Limited. You can communicate your redemption (sell) instructions by phone. However, in the interest of your security, the sale and payment will only be made once we have received a written and signed confirmation of your redemption.

Is There Any Risk In EPA¢K?

Investing in the stock market is risky because no one can determine and guarantee the future direction of share prices. This is especially true in the short term when prices tend to fluctuate. In the long term, however, fluctuations even out and most share prices have an upward trend. Thus, you reduce your risk if you use EPA¢K as a long term investment.

Who Are the Promoters?

In November 1998, Databank decided to collaborate with Enterprise Insurance Company (EIC) Limited to move             EPA¢K to a national scale and also to transform EPA¢K into a formal business entity. EIC subsequently became the initial majority shareholder of EPA¢K Investment Fund. EPA¢K is managed by Databank, three-time winner (1997, 1998, 1999) of the Euromoney award for the best brokerage house in Ghana. When Can You Start? Today, by completing a subscription form. Contact any of our investment professionals for assistance