{"id":1046,"date":"2019-05-14T15:10:12","date_gmt":"2019-05-14T15:10:12","guid":{"rendered":"https:\/\/kobotalk.com\/?p=1046"},"modified":"2024-12-17T16:13:38","modified_gmt":"2024-12-17T16:13:38","slug":"invest-in-nigeria","status":"publish","type":"post","link":"https:\/\/kobotalk.com\/BLOG\/invest-in-nigeria\/","title":{"rendered":"6 Smart Ways to Invest In Nigeria With A Small Amount of Money"},"content":{"rendered":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>
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What are the ways to invest in Nigeria with a <\/span>small amount of money?\u00a0 \u00a0<\/span><\/p>\n

Is it possible to invest in Nigeria with small money?<\/span><\/p>\n

Are there opportunities for people who don’t have much money to invest in Nigeria and make money?<\/span><\/p>\n

Can a poor person invest in the stock market?<\/span><\/p>\n

These are some of the questions I regularly receive in my email.\u00a0<\/span><\/p>\n

And my answer is a big yes to all of them.<\/span><\/p>\n

Many people think that making an investment is an exclusive preserve of the very rich class.\u00a0 On the contrary, anybody can start investing irrespective of how much he or she earns.\u00a0 As a matter of fact, the earlier one starts investing the better.\u00a0 <\/span><\/p>\n

The power of compound interest is what makes the difference. <\/span>It is like planting a seed!<\/span><\/p>\n

A tiny acorn planted today has the power to grow into a mighty oak tree.\u00a0 That small Naira bill in your hand is a money seed. If planted well, it has the power to grow into a <\/span>mighty money tree. So go ahead and plant that seed now.\u00a0\u00a0<\/span><\/p>\n

6 Ways to Invest In Nigeria With <\/strong>a Small Amount of Money<\/strong><\/span><\/h2>\n

#1. FGN Savings Bond (FGNSB)<\/strong><\/span><\/h2>\n

The Debt\u00a0 Management Office (DMO) issues the FGN Savings Bond on behalf of the Federal Government of Nigeria. <\/span>It is targeted at retail investors. The objective is to encourage low income earners to take part in the debt market.<\/span><\/p>\n

The FGN Savings Bond<\/a> is issued in the first week of every month for two and three years tenures.\u00a0 The two year Savings Bond usually attract an interest rate (coupon) of 12 to 13 percent while the three year bond attracts interest of 13 – 14 percent per annum.
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These rates of return are not only attractive because they are above what bank offer on their regular savings and deposit account but they are also above inflation rate which makes the effective yield on them positive.<\/span><\/p>\n

Minimum investment in the FGN Savings Bond is N5,000. To purchase the FGN Savings Bond approach your stockbroker.\u00a0 <\/span><\/p>\n

#2. Mutual Funds<\/strong><\/span><\/h2>\n

Another way to invest in Nigeria with a small amount money is via mutual funds.\u00a0 With as little as N5,000 you can invest in some very viable mutual funds in Nigeria and relax to see your money grow.
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A mutual fund is a collective investment scheme set up by a professional money manager. The money manager pools funds from diverse group of people and invest it in profitable financial instruments.
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Mutual fund is best suited for people who do not have deep knowledge of the sophisticated financial market or those who do not have the time to analyze the market by themselves.\u00a0 It is also suited for the retail investor or one who have small amount of money to invest.
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In 2018, it was estimated that the mutual fund market in Nigeria was worth N600 billion ($1.96 billion) with an average returns of approximately 15 percent.\u00a0 <\/span><\/p>\n

Going by the history of performance of the available funds, some of the best mutual funds in the market based on the 2018 study include:<\/span><\/p>\n