Stats: 3,190,583 members, 7,941,223 topics. Date: Thursday, 05 September 2024 at 08:32 PM |
Nairaland Forum / Nairaland / General / Investment / Where To Make Money From In 2019 (871 Views)
Investment Are In Different Forms: What Are You Investing In 2019 / Free Methods To Get 600 Instagram Followers Daily In 2019 / 5 high paying online hustling you can do in 2019 (2) (3) (4)
Where To Make Money From In 2019 by unite4real: 11:39am On Jan 09, 2019 |
The start of a new year is a period of stocktaking and goal setting for many individuals. Living in a developing country like Nigeria means making money is always on the top of the agenda. Here are a few asset classes that we think will do well in 2019, and are worth investing in. EQUITIES The Nigerian Stock Exchange performed poorly in 2018 closing down 17%, and has continued to decline in the new year Investment case A depressed market, however, provides a good opportunity for investors to pick stocks cheaply. Many companies are trading at a six month, and in some cases 5-year lows. Foreign investors, a key player in the market, are staying on the sidelines till after the elections. Likely risk While prices are cheap, they could get cheaper as they have done in the recent past. If militant attacks persist, foreign exchange liquidity could take a hit, and lead to investors rushing out the market. Likely return One can make between 5%-100% per annum. Period 6 to 12 months Minimum amount N500,000 TREASURY BILLS Investment case Treasury Bills may not have been lucrative as they were in 2017, due to the inflation rate trending down in the first half of 2018, but they gradually moved upwards as inflation began to rise. Foreign exchange pressures mean the CBN may be forced to hike rates, in a bid to maintain foreign investor appetite. Likely risk Treasury bills have zero risk as the government is not expected to default. Likely returns You can make between 10 and 15% per annum in 2019. Period 91 days, 182 days and 362 days. Minimum amount N1 million and above; anything less is not worth it. Who is this for I have idle cash for the short term, want to make returns in line with inflation, but don’t have an appetite for risk. FGN BONDS This is a government fixed income security that is offered for 2 years, 5 years, 10 years and 15 years tenors. Investment Case FGN Bonds are one of the safest investments in the country as they are guaranteed by the government. They are recommended for anyone with loose cash who is looking to save towards the future, and earn a fixed income over a long period of time. Interest is paid biannually and annually. The Federal government has ramped up bond issuance in the last few years and 2019 will not be any different. Rising US interest rates, may lead to a slight change in focus, and increased domestic bond issuance. 2018 Performance Yields on bonds trended lower in the first half of the year, before rising in tandem with higher inflation in the second half. Likely risk FGN Bonds have zero risk as the government is not expected to default. Likely returns You can make between 13 and 18% per annum in 2018. Period Minimum of 2 years though you can sell whenever you want. Minimum amount Anything less than N1 million would not yield a meaningful profit. Who is this for I have idle cash for the long term, want to keep up with inflation, but hate risk CORPORATE BONDS These are company offered fixed income security that is offered for 2 years, 5 years, 10 years and 15 years tenors. Investment Case Corporate Bonds are offered by large corporations looking to borrow money from the public in exchange for periodic interest payments. They are recommended for anyone with loose cash who is looking to save towards the future, and earn a fixed income over a long period of time. Interest is paid biannually and annually. 2018 Performance 2018 saw several corporate bonds issued in the first half of the year, largely due to interest rates which trended lower, and the Federal Government’s policy of switching to foreign debt. C and I Leasing Plc issued a N7 billion bond which was over subscribed to the tune of 33%. Tier two lender Union Bank Plc raised N13.5 billion through a bond issuance. Likely risk Unlike FGN Bonds, Corporate Bonds do not have zero risk. However, the companies issuing the bonds are assigned credit ratings by rating agencies. The ratings are reviewed periodically. Likely returns You can make between 15 and 18% per annum in 2018. Period Between 3 months and 10 years. You can also sell whenever you want. Minimum amount Anything less than N1 million would not yield meaningful profit. Who is this for I have idle cash for the long term, want to invest myself but can take on moderate risk. MUTUAL FONDS This is basically giving your money to experienced fund managers to invest on your behalf in exchange for high returns. You also get to pay them fees for this. Investment Case Mutual funds are an easy way for individuals who cant afford to invest directly in assets such as equities and fixed income to do so. They are also a good asset vehicle for passive investors (investors that do not have the time to monitor their holdings on a regular basis. Mutual funds are also an easier way for domestic investors to get into small slices of assets, they cant afford So rather than investing hundreds of thousands in an equity or treasury bills, they can buy units of a money market fund or equity fund. 2018 Performance 2018 performance was largely tame, due to the equally mellow performance of the underlying assets namely stocks and treasury bills. Data from the Security and Exchange Commission reveals that Net Asset Value rose from about N440 billion as at January 5 2018 to N650 billion as at November 2 2018. Likely risk The risk of investing in mutual funds, or any funds for that matter, is that your investments may not be managed well. This can result in very little or no returns. It can also lead to loss of capital, even though this is highly unlikely. You also get to pay the fund managers fees whether or not they make money for you or not. Likely returns You can make between 10 and 14% per annum in 2019. Period 3 months to 12 months. Though you can sell whenever you want Minimum amount At least N50,000 monthly. REAL ESTATE This means buying and selling real estate, or owning one in exchange for rental income. Real estate also includes buying plots of land. Investment Case Investors in real estate point to the fact that real estate investment has always been a perfect hedge against inflation. They also suggest that it inherently has very strong capital appreciation over time. Some people prefer to purchase land in choice areas, hoping that in a few years’ time, property values in these locations will more than quadruple. 2018 Performance There is no official data on performance of real estate in the country. Likely risk The risk of investing in real estate, relates mainly to fraud and falling property values. Due to the difficulty often encountered in verifying who owns properties, most investors end up buying real estate that are non-existent or owned by someone else who is not the seller. Likely returns If you are buying a property to rent, then expect rental yields to be anything between 2 and 6% per annum. This means a property worth N100m will likely fetch you rent of N2 million per annum. It is interesting to note that property yields are often inversely proportionate to property values. Period Long term Minimum amount You should have at least N10 million if you intend to buy a property. Plots of land can go for as low as N500,000 to N1 million. Your initial capital is also dependent on the location of the property. COLLECTIVE INVESTMENT SCHEMES This is basically pooling funds together with your friends and family and giving same to a professional to manage on your behalf or you manage yourselves. For example, Investment Clubs, Cooperatives etc. Investment Case Collective investment schemes are very attractive to investors who are looking for higher returns on their investments from a diverse portfolio. CIS schemes can invest in real estate, equities, bonds, cryptocurrencies, farming or any business they deem fit. 2018 Performance There is no official data on performance of collective investment scheme in the country. Likely risk The risk of investing in CIS is that the fund managers could mismanage it and rather than get the higher returns that you expected, erode the value of your original investment. Likely returns Returns are typically set by the owners of the CIS. We have seen some gun for returns as high as 25% annually. Some CIS also have lock-up periods for paying dividends, preferring to reinvest their profits compounded over a period of time. Period Long term Minimum amount Most CIS make monthly contributions of about N50k monthly. election merchandise/service providers 2019 being an election year across the country means the Independent National Electoral Commission (INEC) and political parties across the country will need several services. INEC offices will be a beehive of activities at this time, with the electoral umpire needing services such as buses to transport materials and staff. The huge crowd that tends to mill around them will also need to be transported and fed. Political parties will need several services, such as branded items, as well posters, and logistics for rallies. Investment cases Election spending across the country cocould run into tens of billions of Naira, just at the Presidential level. Political parties and candidates keen on either remaining in power, or taking over are less finicky about spending as long as results can be delivered. Outside the political circle, supporters of various candidates go out of their way to support financially and in kind. While this a one time opportunity, the potential profit made, can equal to that earned all through the year. Likely risk Working closely with some political parties, may leave some companies at the risk of post-election violence. Likely return Services such as this tend to witness high patronage and little bargaining, as the cream of the crop are often fully engaged. The keen competition among all parties means services will be required all day round, and service providers can afford to charge a premium. Period Short term Minimum amount There is no money minimum amount involved. Before you make that investment decision, make sure that whatever option you choose meets these criteria/rules: I can check the value of my investment whenever I like, real time, online 1. The value of my portfolio is determined by the market and not by anyone or group of influencers 2. You can also check the value or price of the assets in your portfolio online, 24/7 3. You can liquidate your investment whenever you want and without restrictions 4. There are no middle men, except broker facilitated trading engines. 5. The market is regulated by government or self regulated by the internet community https://nairametrics.com/where-to-make-money-from-in-2019/ 2 Likes |
Re: Where To Make Money From In 2019 by ogtavia(m): 12:18pm On Jan 09, 2019 |
This is a very informative piece. Well done OP. As regards treasury bill, you said interest yields between 10 and 15% in a year. But there are 91, 182 and 363 days option. Peradventure one chooses the 182 days option. Will the interest still yield between 10 to 15% such that one can do it twice a year, getting between 10 and 15% yield which will total at least 20% ![]() |
Re: Where To Make Money From In 2019 by unite4real: 12:28pm On Jan 09, 2019 |
ogtavia: No. Interest is per annum and will be prorated if you do less than 364 days |
Re: Where To Make Money From In 2019 by ogtavia(m): 2:38pm On Jan 09, 2019 |
unite4real: Please explain in simple terms sir. For instance, if I fix 1.5m in treasury bills for 6 months and get 150k at 10% interest yield. Can I redo the 1.5m fixing for the next six months concurrently and still earn another 150k at at least 10%?. |
Re: Where To Make Money From In 2019 by unite4real: 3:09pm On Jan 09, 2019 |
ogtavia: The 150K is annual interest and since you are doing for 6 months, the interest amount will be divided by 2. You get 75k for the 6 months. |
Re: Where To Make Money From In 2019 by SmartTeller: 2:28pm On Jan 11, 2019 |
Introducing SmartTeller You want to start a Micro-finance business or service, you definitely need an affordable and reliable software/mobile App for Account managements, Payments, Savings and Transactions SmartTeller is bridging the gap between the banked and the under banked by providing cooperatives a technology to digitize their operations and to serve their customers better. SmartTeller offers their solution for cooperatives to provide quality banking service to the masses in Nigeria and beyond, eradicating their inefficient paper based operations. SmartTeller now provides a mobile application that enables you to pay anyone through their cooperative. SmartTeller provides its technology for financial cooperatives like thrift collector, groups, cooperatives, Microfinance etc. Hence, making lives easier for many people from the market woman to the cooperate person who need to make or know that their daily or targeted contributions with their cooperative through an online banking platform. Smart Teller offers the following services: 1. MOBILE COLLECTION It enable you to do your payment collection and contribution electronically using SmartTeller mobile application, eradicating your in-efficient paper based collection. 2. ONLINE BANKING Login into your Cooperative from anwhere, access your cooperative banking online and make payment with your ATM Card and other options. 3. DIGITAL BANKING Run your Cooperative like bank with Real-time reports, receipt and real time SMS Alert to your customers and manage their accounts effectively. 4. PAYMENTS Make payment easier and faster at your convenience to any Cooperative member account through SmartTeller mobile app. 5. FINANCE MANAGEMENT: Plan, organize, direct and control your financial activities. Visit www.smartteller.net Call 09070750710, or mail us support@smartteller.net for further details. #financialInclusion #finance #savings #microfinance #cooperatives #thriftcollection 1 Like
|
Re: Where To Make Money From In 2019 by ekehopp: 2:37pm On Feb 04, 2019 |
hfn |
Re: Where To Make Money From In 2019 by Brazzaville(m): 3:01pm On Feb 04, 2019 |
![]() |
Re: Where To Make Money From In 2019 by Fidelismaria: 7:14pm On Feb 04, 2019 |
Cool Well detailed |
(1) (Reply)
Get Free EURUSD FOREX Signal Here 100% Accuracy / Bankers/lawyers Help! I Am About To Loose My Dad's Investment / Moneyreward.co Review: Is Moneyreward Scam Or Legit
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 49 |