irookie:
Good Morning ladies and gentlemen.

Trust we had a great weekend?

Just my little advice (again) on MMF and TB investment and please let all the newbie did a little read up form previous pages the answers you needed are already here....but me I love to answer same question anytime sha...it keeps this thread alive

1. TB investment is straight forward if you know you wont have a need for cash urgently, go for minimum of 182 days

2. Invest in 1st tier banks: my picks are FBN, STANBIC and GTB (I use STANBIC & GTB)...they usually have good rates...please when you hear ZENITH ruuuunnnn!!! (except they are better now sha, i divorced Zenith TB long time ago)

3. Use the interest you get in TB above to invest MMF: actually i dont really have picks in MMF but my current MMF funds manager are STANBIC, IONE and AXA

3. Currently I'm saving between 30% to 60% of my monthly salary. Once I have up to withdraw-able 100K in my MMF, I withdraw and invest in TB and interest again in MMF.

4. Currently I have only 2 month that I don't have a matured TB investment, other remaining 10 month, alert must drop ni and I reinvest ASAP.

The key is to know what your investment plans are.

I'm open to any questions, feel free to ask there are gurus in the house to answer you

NB: I am not a staff of any banks or financial institutions.

May God Almighty bless our hustle and grant us all our financial goals.

Good morning All, Also lets be mindful of the deals you get on TB, Always ensure the interest is more than that of MMF no matter the tenor else it is not a good deal

ajeleomo:


Good morning All, Also lets be mindful of the deals you get on TB, Always ensure the interest is more than that of MMF no matter the tenor else it is not a good deal

This is not a good yardstick to measure since MMF prices varies daily whereas, the price you entered at the onset of a TB is what you will get until the end of it.

naijaobi:

This is not a good yardstick to measure since MMF prices varies daily whereas, the price you entered at the onset of a TB is what you will get until the end of it.

so one should accept 10% or even 11%? what will be your best rate entry?

ajeleomo:


so one should accept 10% or even 11%? what will be your best rate entry?

You can have 13.5% for MMF today and 13% for TB. And tomorrow it may become 12.5 MMF, the next day 12%.
Which is now better?

naijaobi:

This is not a good yardstick to measure since MMF prices varies daily whereas, the price you entered at the onset of a TB is what you will get until the end of it.

ajeleomo:


so one should accept 10% or even 11%? what will be your best rate entry?

Personally when I'm buying TB, its min of 182 days and the rate must be higher that what MMF offer. So my entry rate for 182 days TB is usually higher that of the MMF, if not I still keep my funds in MMF.

irookie:




Personally when I'm buying TB, its min of 182 days and the rate must be higher that what MMF offer. So my entry rate for 182 days TB is usually higher that of the MMF, if not I still keep my funds in MMF.

Exactly my point Bros if not it is not a good deal,

naijaobi:


You can have 13.5% for MMF today and 13% for TB. And tomorrow it may become 12.5 MMF, the next day 12%.
Which is now better?

Bros are you indicating MMF will not rise? What if you buy TB @13% for 182 days like u said and after 30 days MMF have risen to 13.5% and fluctuates around above 13% for the rest of the tenor, Will you call your TB trade a good deal?
This is the reason TB fixed rate MUST significantly be highly than MMF as their is tendency for MMF to rise

irookie:




Personally when I'm buying TB, its min of 182 days and the rate must be higher that what MMF offer. So my entry rate for 182 days TB is usually higher that of the MMF, if not I still keep my funds in MMF.

Yes, I'm not saying this is not possible.. All I'm saying is it is possible buy TB at a lower rate that MMF and still make more profit at the end. Thus price of MMF at the start is not a clear yardstick to actually confirm the out come of a TB deal

ajeleomo:


Bros are you indicating MMF will not rise? What if you buy TB @13% for 182 days like u said and after 30 days MMF have risen to 13.5% and fluctuates around above 13% for the rest of the tenor, Will you call your TB trade a good deal?
This is the reason TB fixed rate MUST significantly be highly than MMF as their is tendency for MMF to rise

What if not?
The bolded makes my statement clear that it's not a yardstick to measure outcome of a TB deal.

naijaobi:


What if not?
The bolded makes my statement clear that it's not a yardstick to measure outcome of a TB deal.

Bros you still dont get it
It is safer and profitable to buy higher than MMF interest rate to avoid the IF scenario as you cant predict the future rate

ajeleomo:


Bros you still dont get it
It is safer and profitable to buy higher than MMF interest rate to avoid the IF scenario as you cant predict the future rate

You could be right.. emphasis on "could". Because you cant predict the daily price of MMF except you are a wizard.

I came across this from Rosabon.

19.25% returns on investment.

Who has done businesses with Rosabon? Are they duly registered?

How true is their investment claim?

kaze4blues:
I came across this from Rosabon.

19.25% returns on investment.

Who has done businesses with Rosabon? Are they duly registered?

How true is their investment claim?

Run away from this . If you don’t want to lose your money .

ajeleomo:


Bros are you indicating MMF will not rise? What if you buy TB @13% for 182 days like u said and after 30 days MMF have risen to 13.5% and fluctuates around above 13% for the rest of the tenor, Will you call your TB trade a good deal?
This is the reason TB fixed rate MUST significantly be highly than MMF as their is tendency for MMF to rise

Hope you also factored in the fact that you get *all* your "interest" upfront. So technically, a 13% TB, actually has an effective yield of 15% (r/(1-r)), if all the upfront interests are reinvested. However, some mutual funds, interest are also compounded either monthly or quarterly.

Overall, it depends on the investor. A TB investor could want to preserve his/her principal while the bulk upfront interest is used to chase other opportunities. For Mutual, it might be the preferred route for a salary earner looking at cultivating a monthly saving habit

Hello guys. Thanks to you all for enlightening me. I just crafted a MMF investment with Stanbic Ibtc bank and I feel overwhelmed investing because practically it my first investment in life. I'm in my early 20's

Thanks to you all and I'm following this thread bumper to bumper to learn about more investment schemes

Pr0cter:
Hello guys. Thanks to you all for enlightening me. I just crafted a MMF investment with Stanbic Ibtc bank and I feel overwhelmed investing because practically it my first investment in life. I'm in my early 20's

Thanks to you all and I'm following this thread bumper to bumper to learn about more investment schemes

I wish you success towards achieving your dream goals.

Yem0350:

I wish you success towards achieving your dream goals.

Thanks alot sir

Pr0cter:
Hello guys. Thanks to you all for enlightening me. I just crafted a MMF investment with Stanbic Ibtc bank and I feel overwhelmed investing because practically it my first investment in life. I'm in my early 20's

Thanks to you all and I'm following this thread bumper to bumper to learn about more investment schemes

https://www.nairaland.com/3658395/fgn-savings-bond
https://www.nairaland.com/878880/treasury-bills-nigeriahttps://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick
Check out these threads one after the other too and thank me later bro

NobodyKnows:

https://www.nairaland.com/3658395/fgn-savings-bond
https://www.nairaland.com/878880/treasury-bills-nigeriahttps://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick
Check out these threads one after the other too and thank me later bro

It came very handy. Thanks alot. I'm considering investing on FGN saving bonds. Thanks alot sir. I'm a proud lover of investment and business

Pr0cter:


It came very handy. Thanks alot. I'm considering investing on FGN saving bonds. Thanks alot sir. I'm a proud lover of investment and business

You’re very welcome sir .
I so much like the FGN Savings Bond too .
I’m waiting patiently till October 8 . For the October rates.

Please forgive my ignorance and don't think I'm a lazy Nigerian cos I've read the first few pages and the last 5 pages but can't get an exact answer to my question
Read FBN pays quarterly and funds have minimum of 30days before u can withdraw, so if i invest now and want to withdraw next month, will they pay the capital with the interest or will the interest wait till the quarterly payment period?
Thanks

Apitch:
Please forgive my ignorance and don't think I'm a lazy Nigerian cos I've read the first few pages and the last 5 pages but can't get an exact answer to my question
Read FBN pays quarterly and funds have minimum of 30days before u can withdraw, so if i invest now and want to withdraw next month, will they pay the capital with the interest or will the interest wait till the quarterly payment period?
Thanks

Capital and accrued interest will be paid if you are going for full redemption

kaze4blues:
I came across this from Rosabon.

19.25% returns on investment.

Who has done businesses with Rosabon? Are they duly registered?

How true is their investment claim?

My sister has done, and has been doing business with them 1 year+ , so far it has been good.

Don't wanna say much before someone calls me a "marketer".

Psychodavidovic:


My sister has done, and has been doing business with them 1 year+ , so far it has been good.

Don't wanna say much before someone calls me a "marketer".

Psychodavidovic:


My sister has done, and has been doing business with them 1 year+ , so far it has been good.

Don't wanna say much before someone calls me a "marketer".

Please kindly open another thread for your Rosabon. This place is not for gamblers but for serious investors.

I think Trading Tbills along with MMF makes sense. See a brief calculation
Assuming a capital of N1,000,000 @13% for 364days tenor and reinvesting the capital immediately into MMF

Investment Plan Capital Interest Rate(%) No reinvestment on MMF(N) Reinvest MMF Profit(N)
TBILS 1,000,000.00 13 130,000.00 130,000.00
MMF 130,000.00 11 14,300.00 15,384.32
ANNUAL TOTAL PROFIT 144,300.00 145,384.32
ANNUAL JOINT YIELD 14.43% 14.54%

ajeleomo:


so one should accept 10% or even 11%? what will be your best rate entry?

I will accept TB on 11% than MF because the TB interest is paid upfront. I can invest in something immediately. at the end, I will be having more than 14%

Ehuatamuigunisi:


Please kindly open another thread for your Rosabon. This place is not for gamblers but for serious investors.

See them. It's no longer marketers, it's now gamblers. That's a new one.

I saw this figure this morning on my AXA MMF account. Could it be true abi na system glitch lol

elothaddi:
I saw this figure this morning on my AXA MMF account. Could it be true abi na system glitch lol

It is true. The interest was actually added

ajeleomo:
I think Trading Tbills along with MMF makes sense. See a brief calculation
Assuming a capital of N1,000,000 @13% for 364days tenor and reinvesting the capital immediately into MMF

Investment Plan Capital Interest Rate(%) No reinvestment on MMF(N) Reinvest MMF Profit(N)
TBILS 1,000,000.00 13 130,000.00 130,000.00
MMF 130,000.00 11 14,300.00 15,384.32
ANNUAL TOTAL PROFIT 144,300.00 145,384.32
ANNUAL JOINT YIELD 14.43% 14.54%

Have you forgotten that MMF interest is not constant. It can even increase to 17% . So, in terms of average, it can be higher that TBills at the end of the tenor

Yem0350:

Have you forgotten that MMF interest is not constant. It can even increase to 17% . So, in terms of average, it can be higher that TBills at the end of the tenor

LOL
i can see yesterday was really a eye opener LOL
My calculation however was based on average interest rate but could be better