With the start of a new year, it is time for us to take a look at the best investment options in Nigeria for 2020.
We will look at investment vehicles which have a balanced risk to reward ratio. Investment options with extremely high reward and low risk don’t exist, and the general rule of thumb is, the higher the reward, the higher will be the risk associated with the investment.
We do not want to take extremely high risks with our money. All of us need to have investment strategies that help us to reach our financial goals in a way that doesn’t risk us losing all our savings. Always have a risk management strategy in place to avoid major losses. With all that said, let’s evaluate our options.
1. Equities
Investing in a diversified portfolio of stocks in the Nigerian Stock Exchange is a popular strategy among the people and one that is time-tested and profitable. It is important to do your own research in the sector you are investing in. Careful picking of stocks and keeping track of market sentiments is key to making profits.
2. Binary options
Binary options in Nigeria is another way to make profits in the market. These trading instruments are really easy to understand which is why it is gaining a lot of popularity. In Binary options, traders just need to speculate on whether the price of an asset at a certain time will be above or below a certain amount. That’s it. If you are right, you make a profit! The best way is to use a registered broker to trade in Binary options in Nigeria. Make sure the broker has a good reputation before investing.
3. Real Estate
It is believed that Real Estate around the world has an inherently very strong capital appreciation over time. It means that over time they gain value instead of depreciating. Buying real estate in areas of interest and development and holding them over a period of time is another time-tested strategy to make money. Meticulous research is required to find out such properties and getting the best price on the market is essential.
4. Treasury Bills
Treasury bills are one of the safest investment instruments ever created. This is very important for people who are very risk-averse. The Federal Government of Nigeria, through the Central Bank of Nigeria, issues Nigerian Treasury Bills to provide short-term funding for government budget deficit.
They pay a fixed rate of interest, which can provide a stable income and they usually have a very low investment requirement so people with less capital can also invest.
5. Cryptocurrencies
Cryptocurrencies in Nigeria is another great investment strategy. Cryptocurrencies are taking the world by storm and major financial institutions are recommending that people make crypto a part of their investment portfolio. Bitcoin, a cryptocurrency has been named one of the best investment assets ever in history! However, cryptocurrencies are very volatile generally and the risks are real. Any cryptocurrency you buy must be backed by strong and positive market sentiment and have a good track record.
These were our Top 5 Investment Options to Invest your Money In Nigeria. Remember that you should make your money work for you and small investments over a period of time can get you great benefits later in life.
Happy New Year and Happy Investing!
