It’s getting more challenging to succeed in Nigeria, but fortunately, you don’t need to rob a bank to invest all you need is a few thousand naira, a decent idea, and the perseverance to start and tips on how to invest profitably in Nigeria.
Our paths to profitable ventures have become much simpler thanks to the modern financial system. Technology has greatly facilitated our lives, particularly with the use of smartphones and social media. Although fraud is increasingly becoming a way of life for many Nigerians, there are still plenty of trustworthy investors to be happy about.
The need for people to invest if they want to safeguard their money is no longer news, given the sharp increase in inflation in Nigeria and even globally. They must, however, keep a few ideas in mind when making investments. As a result, we have compiled 5 tips on how to invest profitably in Nigeria.
These are the 5 Tips on how to invest profitably in Nigeria
SET A PERSONAL FINANCIAL GOAL
For example, a short-term financial goal could be a trip that you could invest in, a long-term goal would be being able to afford the schools you would like to see your children attend, a mid-term goal would be to raise the initial capital you need to start a business or further expand your business, etc. Setting a goal makes it clearer and even easier to achieve. It also makes it more enjoyable as you can have some fun today while building for the future.
RECOGNIZE YOUR RISK TOLERANCE
The determination of a person’s risk tolerance is based on many variables. Due to the uniqueness of each person, we usually suggest that people seek advice from an investment manager who knows to more thoroughly assess one’s risk tolerance and provide recommendations on how to invest. Despite this, individuals typically perceive risk in one of these three ways.
- Risk-averse: A risk-averse person usually steers clear of danger. They prefer stability and predictability over higher investment returns.
- Risk-seeker: This group of people is more focused on the financial gains from their investments. With their investments, they take more risks.
- Risk-neutral person: This person falls somewhere between the risk-averse and the seeker categories and tends to think more clearly before making an investment choice.
CONDUCT YOUR OWN RESEARCH
One of the ways to invest profitably in Nigeria is to conduct your own research before investing. Investment plans are widely available, and some of them have been used by con artists to defraud unsuspecting people of their money. Consequently, organizations like the Securities and Exchange Commission aid in reducing this. It is ultimately the responsibility of the person to exercise due diligence. To find out which businesses are governed, visit the Securities and Exchange Commission’s website. Investments featured on FMDQ include the SFS Fund.
DIVERSIFY YOUR PORTFOLIO BY INVESTING IN A VARIETY OF ASSET GROUPS
You must diversify your portfolio by investing in various asset classes, such as bonds, stocks/equities, real estate, commodities, gold, business assets, and cash, to invest profitably in Nigeria. The majority of these might occasionally necessitate substantial investment money. SFS Fund is, therefore, a great entry point because it enables you to amass funds so that you have something to fall back on when you see an opportunity that requires huge capital.
You can achieve your long-term goals by creating the habit of investing by allocating a part of your income for investment activities as you receive it. Unless you are looking for a specific amount of periodic income from your investment, you might want to consider reinvesting any capital you receive from investments or dividends back into your investment portfolio if you are an aggressive investor.
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Making smaller, more frequent investments can occasionally be preferable to making bigger, one-time investments. To accomplish this, the SFS fund enables you to top up your investment at any moment using a variety of channels, including USSD and bank transfers. By downloading the SFS Fund App to your phone, you can watch and monitor your investment from the comfort of your home. Additionally, the program allows you to automate your investment.
The value of a knowledgeable and experienced investment manager cannot be overstated because they have years of experience and know how to handle your money wisely, ensuring that you get the most out of your money. The multi-award winning SFS Capital steps in at this point. The company has maintained a commendable track record with the AA-rated SFS Fund (SFS Fixed Income Fund), paying dividends quarterly to investors since the fund’s debut in 2014. It now has over 100 billion Naira in assets under management. Get started by downloading the SFS Fund App to commence your investment journey.
Many of us, particularly the younger generation, are eager to begin investing, but our weakness prevents us from following through. You need to develop good routines, such as saving money each month. Another way to control high living costs is to spend less on food, subscriptions, and travel. With the money you have saved, you could begin engaging in the asset portfolio. Fortunately, everyone in our generation is thinking about how to survive at a young age. Ideally, there are good and successful businesses that could support realizing that goal only if you know how to invest profitably in Nigeria.