How can one buy the Flour Mills commercial paper? If I invest 1M, what will be my return on investment at maturity?
[quote author=ernie4life post=75530146]

Flour mills Commercial paper is on sale

Tenor 180 days

Maturity date is 6 Aug 2019

minimum sub is 5M

Discounted rate is 13.7498%

Implied yield is 14.75%

offer closes 13 Feb 2019

Which Money Market Fund would this honorable house recommend... FBN, ARM, Stanbic or.....
Going by today's report on the Fund Managers Association of Nigeria, it seems FBN offers the highest yield

CompareDBest:
This is NOT financial advise, but something to consider. From our research:

Amount
MMF allows lower minimums, typically from N5k,
TBills typically from N100k, although UBA advises it accepts from N10k primary market we have never tested this.

Flexibility
MMF typically have a minimum holding period of 30days after which you can treat it as a savings account effectively, but each provider has its notice period for withdrawals, none more than 7days we believe
TBills can have stiff penalties or loss of some of your capital depending on the rediscounted rate and early termination date. However, sometimes, no penalties and the rediscounting rate is less than the rate you originally got. So, you can profit

Deductions
MMF usually has no charges if you stick to the holding period, typically 30 days
TBills primary 91, 182 & 364days
TBills secondary 7 - 364days

Rates
>MMF typically beats even the true yield of 91 day Treasury Bill rates; check daily MMF rates @ https://fman.com.ng/mutual-fund-price-list/, and also see reports from individual providers such as Ecobanks MMF @ https://www.ecobank.com/corporate-investment-banking/wsa-management/collective-investment-schemes.

>182, even better, 364 day TBill rates typically trump MMF. See https://www.cbn.gov.ng/rates/govtsecurities.asp for 30 Jan's auction and other historic TBill primary market auction rates

>MMF rates as advertised/published are regularly disputed by those with MMF accounts; see https://www.nairaland.com/1912965/mutual-funds/138. It seems checking your daily balance comes with the territory, and customer service is not necessarily as well staffed.
With TBills you get your interest upfront and simply diarise the maturity to ensure your capital is recredited as it usually is. So, TBills typically gives less stress

Summary
Simply put, if you have less than N100k, but at least N5K...OR want to invest any amount for less than 182 days, strongly consider MMF.

However, if you are a control freak, or have OCD like some of us and want to know the exact rate you will earn...OR do not want to be login in to check if your money tree is growing every day/week...want to earn interest upfront...or prefer tenures 182 days or more, TBills might be your preference.

Also consider, using the strengths of both as a strategy; i.e., replacing your savings account with MMF (require some planning because of notice required for withdrawals) and TBills for midterm investment...one day even FGNBonds for longterm if the rates get more distinct/higher than 364day tbills.

SternProphet:


Apparently old age is not limiting Buhari's performance. He went on a whistle stop your of seven states conducting stakeholder meetings to prevent herdsmen conflict, came to Lagos , solved his party's tenure elongation issues, arranged $1bn to buy military equipment, received Bill Gates, attended many social functions, received ambassador letters, received about three sets of guests and is going to the UK next week.

Emmm...this sounds like a 30-year old jumping about o

Stop deceiving yourself. The man is not performing. Anyways, why am I replying you when you and your likes have been planted in every forum to canvas for weak, clueless, old man that should be at Daura. I also pray that you nor any member of your family fall victim to Fulani Herdsmen attack.

samzepaparazi:


Even Naira bet is better than forex.

Forex is a big waste of time and money.

Its pure guessing.

I tried it i aint going back. Those book makers will always wipe out your cash once it hits -95% .
The annoying thing when that happens is that within the same day , it could still yield more than 100% of your lot.

So why not allow one to set a time frame for the lot to expire rather than wipe the entire cash out as a loss on a dip of 95%.

Ahbegi

I need other Subject Matter Experts opinion on this please. I trust the experience, expertise and maturity of the members of this thread

Mftivi:

hot forex and swissquote

Am looking for a good forex coach based in Lagos. Someone who can train me one-on-one. Contact me so we can talk about your fee. I really want to learn.