Hi reader. Welcome back to my blog. I hope this blog has been really enlightening you financially. Resultant of the many enquiries I’ve been receiving, I started this series which talks on investment options in Nigeria. Last episode discussed treasury bills, fixed deposits and investment deposits. (If you missed it, view it here).
Today, I’ll be talking on some more investment options in Nigeria.
Mutual Funds- Mutual funds are established to invest many people’s money in different securities mainly stock, bond, short term debt. When you buy mutual fund shares, you become a shareholder of a fund that has invested in different securities. A mutual fund reduces risk by its diversification. It has zero capital risk and offers amazing interest rates (an average return rate of 13%, can be higher on lower depending on the firm). They have low entry capital (Some accept
N10,000, N5,000 and even N1,000) and some firms offer quarterly pay-out options. Another amazing feature is that you can top-up as much as you want (most times in multiples of N1,000). Rather than saving in a traditional bank savings account, you can accumulate capital in this low-capital size accommodating option and then transfer your accumulated funds to your next desired option.
You can access mutual funds in Nigeria from different commercial banks/asset management firms. Examples include Stanbic IBTC Asset Management, First Bank Capital Limited, Asset & Resources Management (ARM), Investment One, Zenith Capital Limited, UBA Asset Management Limited, etc.
Other Investment Options- Asset Management firms (examples of which I have mentioned above) offer other money market fund/investment options which can be easily tailored to meet your investment goals and capital size. All you need to do is to walk up to these firms and discuss your investment needs and you are started on your way. Do make sure your investment goals are firstly, well spelt out.
Till Next Week Monday…….
We believe in you!
To your financial independence and freedom
More Investment Options in Nigeria