What are you Investing in?
Asset allocation is the fancy term for how you decide to divvy up your money among different types of investments. To enjoy a comfortable future, investing is absolutely essential for most people.
This is an important decision since the research suggests that 90% of the investment return you receive is dependent on the kinds of things you invest in, rather than the specific investment choices you make.
Your big decision is essentially how much of your money to put toward each asset class, your risk appetite, and the time horizon. As you mold your portfolio, Wealth.ng offers you exciting investment opportunities for a well-diversified portfolio such as T-bills, Stocks, Bonds, Eurobonds, Agriculture, Savings (Wealth Cash).
Here’s what you need to know about these asset classes:
T-Bills: Treasury bills are one of the safest forms of investment in the world because they are backed by the full faith of the Government. Not many small investors begin their investment journey with Treasury Bills but you can. You can buy T-Bills with maturities of anywhere from 30 days to 365 days for as low as N10,000 on Wealth.ng.
Stocks: In simple terms, Stocks are shares of fractional ownership in a public company. The stock market is where investors connect to buy and sell Stocks. When you invest in the stocks of a company, you enjoy dividends from the company’s profit and when the value of the stock increases, you can decide to sell off some of your stocks and get a return on your investment. You can actually start investing for the price of a single share(can range from just some kobo to some thousand Naira).
Bonds: If you are looking for an alternate form of investment and want to receive regular interest payments, then Bonds may be a suitable investment for you. Access Bonds from 3- 5 years on Wealth.ng and start enjoying the better life. You can earn interest of up to 9%. Bonds issued by the government are risk-free and do not have any default risk as they are backed by the government. Among other things, Investing in Bonds has the following benefits:
* Low Risk- compared to Equities
* Fixed and Regular Income
* Capital Appreciation
Agriculture: Agriculture is a commodity investment, which pools funds for the primary purpose of investing in income-generating agricultural practices to increase crop yields or assist in building storage and processing capacity to broaden local value. Agric-finance products like Soybeans, Sorghum and Maize are listed with competitive returns on Wealth.ng, but please note that these crops are subject to availability and it’s usually fastest fingers first.
Eurobonds: The main benefit to local investors in purchasing a Eurobond is that it is relatively cheap to obtain. Simply select your preferred Eurobond product, and make payment directly on Wealth.ng and you can get started with a minimum of $500.
Wealth Cash: Wealth Cash is a savings product that offers you easy entry into the world of investments. It provides you a liquid option such that with a minimum of 1,000 Naira, you get impressive returns of 6% per year. There are endless opportunities to keep your money stashed away with Wealth Cash. The best part? You can easily collect your money at no extra cost.
Got some cash to put to work? Start investing now
We re-emphasize doing some due diligence before investing. A mix of asset classes in your portfolio is the right step as you try to outdo the inflation drag. Stay well Cheerio!
