Investing in Nigeria can be a very rewarding experience. This is because Nigeria is blessed with numerous investment opportunities, which you will be learning about subsequently. However, you need to do your research first so you can understand what you’re signing up for. Once you do this and understand the basics, you become ready to invest. This article will teach you the basics of investment and how to invest and earn daily in Nigeria.
What should I consider before investing?
Before you start investing, there is one thing you should know. You must always assess the risk level of any investment opportunity before you venture into it. Basically, these two factors will help you evaluate the overall risk level of an investment opportunity:
1. The risk of losing your investment (the possibility of loss)
2. How much money you are likely to lose if something bad happens to the investment ( the potential loss)
For Instance, if there’s a 99% probability that your investment will increase in value in the next two years, there is a 1% probability that it won’t.
Hence, if you invest N1000 and the amount doubles in value, you will get N2000. However, if it does not increase in value, you will just have N1000 left after two years.
What Are The Types of investment in Nigeria
Investing works by depositing your money into specific financial products and allowing it to grow after some time. Basically, there are two categories of investments in Nigeria. All Nigerian investments will fall into any of these two categories:
1. Debt investments
Debt investments are investments that are backed up by the government or a physical asset. Basically, people consider this type of investment much safer than equity investments.
This means that when you pick this type of investment, you’re likely to get returns, however, it will be low. Generally, debt investments are more suitable for people who invest hoping to get a stable source of income instead of a huge growth potential.
2. Equity investments
Equity investments are investments that are not supported by any physical asset or government guarantee. Hence, they are much riskier than debt investments, but they can deliver higher returns if things go well.
Basically, this kind of investment is suitable for people who prefer to risk their money to get greater returns.
How to Invest and Earn Daily in Nigeria
Investing your money wisely is a great way to make your savings work for you. Basically, the more money you can invest, the greater the interest on your money. Here are some tips to enable you to invest and earn daily in Nigeria:
1. Find an investment opportunity
First thing first, you need to find a legit investment opportunity. Basically, to do this, you need to follow the news and check out the latest trends in the Nigerian economy. For instance, if the economy experiences an agricultural boom, you can capitalize on this by investing in companies that will enable you to benefit from the agric boom. Examples of companies like this are agric-tech companies.
Also, try investing in organisations that have relations with foreign funds. Basically, it helps you diversify your portfolio and your potential of earning a daily income from numerous sources. Lastly, it is a good idea to diversify your investment. That way you will be on the safe side if one investment fails.
2. Estimate How Much Capital You Need
Once you have successfully found an investment opportunity, the next thing to do is to find out how much money you will need to start your project. While doing this, you need to factor in taxes, insurance coverage, legal fees, as well as unforeseen expenses.
3. Find a Niche
Nigeria is rich with numerous opportunities if you know where and what to look out for. It’s very important to do your research and identify what the people around you need the most. The more you know about what people lack, the better your chances of succeeding.
4. Consideration of risk
One important thing to consider is your risk tolerance level. If you have a low level of risk tolerance, do not invest in equities because they are volatile. Their prices tend to fluctuate easily. Hence, it will be better if you invest in more secure types of investments.
Lastly, consider how much money you would like to invest in each company. Remember that the bigger the investment, the higher its chances of being volatile.
There are good ways you can invest and earn daily in Nigeria. However, you need to learn the basics of investments and the risk that it comes with first. Thereafter, you can study the economy and find out which niche is experiencing a boom so that you can invest in it. Lastly, do not forget to diversify your investments to reduce your risk of losing everything at once.
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