My name is Awom Kenneth and I want to talk about money do and how to invest it in the Nigerian Ecosystem and investing in 2020. There’s a common saying that the beginning determines the ending.
What would your finished story look like?
Here is a video.
The low-risk investor
The low-risk investor in some ways has the smallest wiggle room in 2019. The interest rate on treasury bills dropped sharply in the last quarter of 2019 and could remain there at least for the first quarter of 2020.
If safety is a bigger priority than the return on capital, then you could decide to stick to them.
We expect rates to start to inch up from the second quarter of the year. So one can hedge using a money market mutual fund.
Medium risk investor
For investors with a medium risk appetite, the options widen a bit. You have Agri-tech schemes that offer a decent return above the inflation rate of 11.85% as of November. You also have various lending schemes that offer returns twice the amount a one-year treasury bills pay at the moment. Some also offer interest upfront.
We think tying your funds down for over a year doesn’t quite pay you. Things change ever so fast.
The high-risk investor
For the high-risk investor, some good news. The Nigerian stock market has begun the year strongly. The NSE All-Share Index is up by over 9% at the time of writing this. Fingers crossed by 2020 could be a breakthrough year after two years of losses.
US markets seem to be a bit sluggish so far this year. It’s just up 1.07%. We expect a bit of a slowdown, so don’t expect a 29% gain made in 2019.
Invest in yourself
The biggest investment one can make is self-development. Take a course. Read a book. Attend a masterclass. Do something to upgrade yourself professionally. The returns are what you will reap for decades. While most people are fixated with sweating their portfolio, growing your earnings should also be a priority. The bigger your earnings, the bigger the portion you can invest.
Credits: Money Africa