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One of the basic rules of staying ahead financially is to save as much money as you can. You can achieve this by keeping your expenses under control and by staying out of debt.

If you always put this basic rule as you run the affairs of your business daily, then you can be sure to always have a big bank account balance.

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Investment Opportunities in Nigeria

Investment Opportunities – Photo Source: http://donokereke.blogspot.com

After saving much, you will still be left with the question of what to do with your money. You can keep on pilling up your money in the bank.

Your money will remain safe for as long as you want it and it can be made available to you whenever you need it. But with the bank’s interest rate today, it will be difficult to earn much.

Every business-minded person always looks for ways to double his or her money. If you are such a type of person, rather than just keep all your money in the bank, you will have to move your money to some other investments that will yield better profit.

The reason you are saving your money can determine the type of investment you can use your money for. You can invest your funds in the stock market when you are saving for retirement because it runs over a long period of time and it brings in more profits during that period.

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But in case you just want to save your money until when you need it, then you just need a personal savings account which only brings little profits but your money is always safe.

If you wish to make profits from investing your money, then you will need to focus on financial investment opportunities in Nigeria with low possible risk. You can invest some percentage from either your salary or income and make profits without being available physically to monitor it.

Another advantage you can get from financial investment is that you may not need to know everything about the market but you can still make profits even with little capital.

Best Financial Investment Opportunities in Nigeria with low risk

Below is a list of some of the best financial investment opportunities in Nigeria with low risk that you can decide to invest your money.

The Custodian lifetime harvest

This financial investment opportunity is not just a great passive savings-investment idea but it is also one of the best investment opportunities in Nigeria with low risk. You just need to save a small part of your money either monthly, quarterly, or annually.

Benefits:

• Your capital is safe and secured in this investment opportunity.
• The investment comes with Insurance. The family gets compensated when the breadwinner dies. They give a huge sum of money. But in the case of an accident involving the investment holder, the person gets medical benefits. This can be up to millions of naira depending on how fatal the accident is.
• It allows minimum savings of 5,000 Naira monthly.
• There is no tax deduction as the investment holder is given tax relief from the government.
• You get paid a minimum of 70% of your money every three years.
• It has an interest rate of about 18%
• It can also be used as loan collateral
This type of financial investment opportunity in Nigeria is suitable for people who are looking for family protection for their wives and children because of its insurance policy.

Treasury bills

Treasury bills can be described as short-term debt instruments that are issued through the Central Bank of Nigeria (CBN) by the Federal government to provide short-term funding to be used by the government.

It is one of the best financial investment opportunities in Nigeria because it is backed by the Government and to purchase it is also easy because it can be done through your bank.

Treasury bills are by nature one of the most liquid money market securities. They have a low level of risk involved because they are backed by the credit and faith of the Government.

The Treasury bill rate has been hitting double digits in recent times because the CBN has been offering high rates to attract offshores flows into Nigeria in order to drive economic activities. This is because of the effect a continuous drop in oil prices has on the economy.

The minimum amount needed to purchase the Treasury bill is differs depending on your bank but to buy directly from the CBN, you will need a minimum of 50million Naira. It is usually a minimum of 100,000 Naira in most banks.

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Benefits:

• Since they are backed by the government, the level of risk involved is very low.
• They are good financial investments in Nigeria for idle saving.
• There is no deduction of tax from the interest.
• The interest rates range from 18% t0 18.6%
• You can buy them at a discounted amount. For instance, you can buy 100,000 Naira worth of treasury bills at 82,000 Naira.

FGN Bonds/Saving Bonds

The FGN Bonds are debt securities that are issued for and on behalf of the Federal Government by the Debt Management Office (DMO). Recently, the DMO launched the FGN savings bond, which is a new retail investment opportunity with low risk.

It is also a very safe type of financial investment because it is fully backed by the Federal Government. It has an interest rate of 13% to 14%.

The interest is paid quarterly but when the investor does not wish to wait that long, he can sell his investment in the secondary market like the Stock Exchange Market.

Benefits:

• Like most financial investments backed by the Federal Government, FGN saving bonds are tax-free.
• FGN bonds can be used as collateral to raise funds.
• It is one of the safest financial investment opportunities in Nigeria because no risk is involved. You can always expect your full return when the bond becomes matured.
• The FGN bond is quoted on the Nigeria Stock Exchange, so it can be traded easily.
• The interest rates are fixed and are paid every quarter.
• This type of financial investment is encouraged for low-income households because it involved little or no risks at all and returns are guaranteed.

ARM Mutual Funds

An ARMs mutual fund is one of the best financial investment opportunities in Nigeria with low risk. It is just the best platform for low-income earners because it has a minimum capital of 5000 Naira.

This type of investment is suitable for those looking at short-term goals. There is no insurance policy for the investor. When the investor dies, the account balance is paid to the next of kin indicated, and no extra amount is added to the money paid.

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Benefits:

• You can start an investment with a minimum of 5000 Naira only.
• Payments are received quarterly.
• It has an interest rate of 15.97%
• You can add up to your account anytime you have any money, even if it is just 1000 Naira.

Bank Fix Deposit

The bank fixed deposit is a type of investment account where the investors and the bank agree on a specific amount to open the account with an interest rate that is also agreed upon by both parties. There is also an agreement on the duration of the account.

Once the agreed period of time is reached, the investor can either re-invest or the investment is liquidated (i.e. the investment is returned to the investor) with the agreed interest rate earned.

It is also one of the best financial investment opportunities in Nigeria with low risk because you are not at risk of losing your money since you just need to open a fixed deposit account and save.

Benefits:

• The minimum of 100,000 Naira is needed to open a fixed deposit account.
• The interest rate is attractive.
• Deposit fixed account is free for everyone who wishes to invest.
• The investment period has a minimum of 30 days and a maximum of 360 days.

Money Market Funds (Stanbic mmf)

Money market fund is a platform where individuals with a small amount of money but wish to invest it come together as a group to make an investment. The funds gathered by the investors are managed by professional fund managers. These funds are invested in securities issued by the government.

One example of a good money market fund is the Stanbic IBTC money market fund. The minimum amount you can invest is 5,000 Naira. The interest rate is around 18% per annum which is better than just saving your money in your regular bank account.

You do not need to have any skill before you can invest in money market funds because your money is safe and the income is guaranteed.

UBA Money Market Deposit

UBA money market deposit helps you as a low-income earner to invest your funds and get profits without involving in any risk.

The ability of this plan to make you get profit on short investments is one of the reasons why it is safe and advisable for you to invest. Another unique feature of UBA money market deposit is that funds can be simultaneously transferred by both counterparts.

It comes in two formats which are the secured and non-secured format. You can choose anyone depending on which you prefer. Ensure to seek proper guidance on which format to choose so that it will be more convenient for you.

Benefits:

• It is an opportunity to earn profits on short-term investments.
• An investor can invest in secured plans. It is safe and can receive collateral.
• Liquidity can be created when you intend to meet the short-term obligations.

Bank Account

The last but by no means the least good financial investment opportunities in Nigeria with low risk is the opening of a bank account. It is the easiest thing to do with the money you wish to save.

It is very safe because you are guaranteed to get all your money back even if your bank eventually goes out of business. This is because they are insured by the Nigeria Deposit Insurance Corporation.

Bank accounts are basically for those who wish to save their money for just a just period of time. The interest rates of bank accounts are very low because the main purpose is actually to save your money rather than earn interest.

You may not get as much interest as you may want but you do not need to bother about any risk because your money will always be safe and secured until you wish to use your money for other investments.

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Conclusion

If you are someone that is scared of taking a risk, these are financial investment opportunities in Nigeria you can engage in without being scared because you are sure to get your money back. In order to make the best out of these opportunities, you will need to make researches and ask questions so that you can be sure to follow the right path.

Other best financial investment opportunities in Nigeria with the low risk you can invest in include Fixed Annuities, Commercial Paper, Mutual Funds, etc. What you just need is the right information and a little amount of money to invest.

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