Investment is simply allowing money to grow. It can be endeavors, like starting a business to generate income or assets like real estate, in hope of selling it later at a higher price.
The wealth created from an investment based on the individual can be used to supplement income, for retirement, to pay up loans, purchase other assets or reinvest.
Investment and Savings
Investing is different from savings and as a new investor, you should be able to tell the difference.
Savings means you are putting some of your earnings (money) aside over a period of time. There is no risk and no profit involved. The value remains more or less the same with no addition on it.
While investment is done with the aim of earning returns on your money you use in starting the investment. The value increases and you make profits.
Returns and Risk
Returns on investment and risk on investment goes hand in hand when talking about investment.
A high returns investment means the investment is accompanied by higher risk, that is, a high chance to lose your investment, While a low returns investment means low risk.
Different types of investment
There are different investments in Nigeria, before choosing which to invest in, you should carefully analyse them.
Stocks
When you buy a company stock, you become a shareholder, that is, you own a part of the company. You then earn on your investment when the stock price rises and on dividends paid.
Bonds
Buying a bond means that you hold a share of an entity’s debt and are entitled to receive periodic interest payments and the return of the bond’s face value when it matures.
Funds
Funds are crowdfunded instruments managed by investment managers that enable investors to invest in stocks, bonds, preferred shares, commodities, etc.
The most common type of fund is the mutual funds. Find out how to start investing in mutual fund
Other types of investments are Commodities, Investment trusts, Options and derivatives etc.
Why you should invest
You may have other reasons, but the overall goals of investing money may be any one of the following
1. To Keep Money Safe
2. To Help Money Grow
3. To Earn a Steady Stream of Income
4. To Minimize the Expenses Burden on income
5. To Save up for Retirement
6. To Meet your Financial Goals
How to Invest
Some investors prefer to manage their investment on their own. To invest on your own, you will need to create an account with a discount broker and use their platform.
There is also the option of Professionally-managed Investing. This is the best option if you don’t have the time or skills. You just delegate the research, investment decision-making, and trading to an expert.
To start investing today, Talk to us
Fund Manager
GTI Asset Management & Trust Ltd
Email: gtiamt@gti.com.ng
Stock Broker
GTI Securities Limited
Email: headoffice@gti.com.ng
GTI Group
Website: www.gti.com.ng
Email: training@gti.com.ng
Phone: +234 (1) 2772481, +234 (1) 2772484
