They say high risk equals high return, but what if you, like me, can’t stomach the roller-coaster of the stock markets? Can you still invest and grow your wealth? Absolutely! In this blog post, I’ll share the tips and tricks I use to invest and earn money while I sleep. Let’s get started.
1. Treasury Bills
When I started investing about 10 years ago, I began with treasury bills. Treasury bills are government-backed securities that are considered very low risk. The only potential downside is the possibility of government default, but so far, the Nigerian government has never defaulted since I started investing.
2. Government Savings Bonds
Another great option is government savings bonds. These bonds are also government-backed and allow you to start with a small amount of money. They are low risk and provide a steady return on your investment.
3. Savings Apps
Apps like Kuda and Opay offer low-risk investment opportunities. For example, Kuda allows you to set up your account so that every time you spend, a small amount is saved. The interest rates may not be very high, but it’s a good way to start building your savings.
4. Money Market Funds
Money market funds are another low-risk investment option. They invest in short-term, high-quality investments issued by government and corporate entities. These funds offer lower risk and more liquidity compared to stocks.
5. Fixed Deposits
Fixed deposits with reputable banks are also a solid low-risk investment. Nigerian banks are generally well-regulated, so your money is safe. The returns might not be as high as stock investments, but they are much safer.
6. Diversified Money Market Funds
If you can handle a bit more risk, consider diversified money market funds. These funds invest in a mix of stocks, commercial papers, and fixed income securities. While they are not as low-risk as treasury bills or fixed deposits, they still offer a balanced approach to investing.
7. Dollar Funds
The only moderately risky investments I’ve ventured into are the Stanbic Dollar Fund and the Vintage Dollar Fund. These were initially offered by Investment One, but have since been sold to GT Fund Managers. While they carry some risk, they provide exposure to the dollar, which can be beneficial.
Long-Term Planning with Low-Risk Investments
Low-risk investments won’t make you rich overnight, but with long-term planning, they can yield significant results. Typically, you start seeing returns within a year, depending on the amount of money you invest.
Remember, the key to success with low-risk investments is patience and consistency.
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