In this modern age, it is all about investing money to meet financial goals such as children’s education, building/buying a house, marriage, foreign trips etc. However, to invest in something big, you need to ensure that you know all there is to know.
The tricks to investing right include:
- Starting early: Start investing as early in life as possible for the magic of compounding to work.
- Investing regularly: If you invest the same amount every month or at regular intervals, you will average out the purchase cost.
- Tracking your investments: Discard the non-performers and keep the good performers.
- Having realistic expectations: Trading can be somewhat risky but can also be rewarding. So your expectations on RoI (Return on Investment) should be realistic.
Here are five ideal investments that can be done for long term to grow your money on a compounded basis.
1. Mutual Funds
A Mutual Fund is a pool of investment made by different investors with the goal of either making some extra money or to keep their money safe. The idea here is to invest in different securities so that the investors can easily diversify their savings without facing a lot of risk.
Mutual Funds are one of the easiest investment solutions, you only need to find performing mutual funds and start investing in them.
2. Stock market
Stocks or Equities are available in different forms, and as Shares of a company. Investing in stock is an ideal investment for a lot of Nigerians. Stocks usually are bought using Cash which means there are hardly any hidden charges or extra fees attached to them.
The process for buying and selling of Stocks is easier when compared to other investment options. Investors have the option of either buying or selling their stock.
In Nigeria, many businesses and even the Federal Government issue bonds in a bid to raise some funds from the investors who buy them. There are different types of bonds that an investor can go for. Some bonds offer regular interest to the investors while some promise to pay the principal back once the bond is mature.
Investing in bonds is quite easy as you can buy them directly from the broker who you pay cash to.
4. Real Estate
To put your savings to some good use, investing in Real Estate may be the wisest option to go with. You can buy lands and houses/apartments and rent or lease them out to get regular income. There are a lot of reasons real estate is considered to be one of the best old school investment solutions.
Buying a house or land is a sure way of securing your money and future.
Though it is somewhat slowing down in Nigeria, investing in gold is one of the oldest investment solutions. Investors keep their money safe by buying gold. The most preferable method in Nigeria is buying jewels that can be used and sold at a later date for a higher price.. However, there are investors who prefer to buy gold in solid form i.e. as gold coins or gold bricks.
Did these tips help? Share your thoughts in the comments section below!