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Re: How Can I Invest A N100,000 And Make Profit Without Working by ogaofficer(m): 2:30pm On May 20, 2015 |
Sparkles003:https://www.nairaland.com/1167218/how-invest-federal-government-bonds that is the link you capital is secured but you have to be patient before you start reaping. you can start with the minimum of 10,000 |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Acidosis(m): 2:33pm On May 20, 2015 |
Themaingate: Fixed deposit for a 1year period on N100,000 will yield less than N8,000 (before 10% tax) in any Nigerian bank. |
Re: How Can I Invest A N100,000 And Make Profit Without Working by ogaofficer(m): 2:36pm On May 20, 2015 |
IME1: This is the third part of my series on fixed income investments. A fortnight ago, we discussed investing in Treasury Bills. Today, I will guide you through investing in FGN bonds. What is a bond? A bond is a contract between a lender and a borrower, whereby the borrower agrees to pay the lender interest and repay principal upon maturity. What is an FGN bond? FGN bonds are debt instruments issued by the Federal Government of Nigeria for an agreed period of time. The investor lends an amount of money to the government and earns interest on the investment until the maturity of the bond when the principal will be returned. What are the benefits of an FGN bond? 1. Interest received on FGN bonds is not subject to tax. 2. Provides a stable income stream when held to maturity. 3. Repayment is guaranteed at the maturity of the bond. 4. FGN bonds can be used as collateral. 5. It is easily tradable as it is quoted on the Nigerian Stock Exchange and can also be traded over the counter. Who can invest in FGN bonds? Anyone can invest in a FGN bonds. They can be individuals or corporate bodies. When are FGN bonds issued? The government sells bonds via the Debt Management Office at a primary auction. Freshly issued bonds usually take place on the third Wednesday of every month. What are the bond maturity terms? FGN bonds have maturity years ranging from five to 10 or 20 years. The maturity of a bond is the number of years remaining for an already issued bond to be due for payment of principal. Where and how do I invest in FGN bonds? You can invest in bonds through a primary dealer/market maker. PD/MMs can be banks, investment houses, brokers etc. To invest, simply approach your chosen PD/MMs and fill a form including your personal information, bank details for payment of your interest, CSCS no’s, the amount you wish to invest, including your bid interest rate etc., and then sign. You can invest a minimum of N10,000 and multiples of N1,000 thereafter. Why do I have to bid interest? FGN bonds are sold via an auction system where investors quote interest rates for bonds they wish to buy. As such, bond applications with interest rates that are below the minimum average interest rates otherwise called the marginal rate quoted are accepted and those higher may be rejected. For example, if the marginal rate is 12 per cent, then bids below 12 per cent will be accepted. Therefore, different investors can have different interest rates provided it falls below the minimum average bid price. Someone can have 10 per cent, another 11 per cent, nine per cent, 10.5 per cent etc. What is the marginal rate for bonds and how does it work? Bonds are like any other financial assets and are affected by interest rate pressures. As such, despite the coupon rates, the FG indicates it will pay. Bond buyers and sellers determine the price of a bond based on its expected yield. For example, FG offers for sale FGN bond with a coupon rate of 10 per cent. Thus, N100 units (bond price) of the bond will earn N10 in coupon interest. However, when you buy, the marginal rate determines the price you pay. So, if the marginal rate is 13 per cent, you pay N76.9 for a bond with a face value of N100 per unit. This is derived by dividing the fixed coupon (N10) by the expected yield of 13 per cent (10/0.13) to arrive at N76.9. As such, the N10 coupon that will produce a yield of 13 per cent will be based on a price of N76.9. Basically, when the yield is higher than the coupon, the bond price is sold at a discount and when the premium is higher than the yield, the bond price is sold at a premium. The price or value of a bond is therefore determined by the yield. What other factors affect bond price? A. The credit status of the issuer. B. Forces of demand and supply of such securities. C. The inflation and interest rate movements. Is there a secondary market? You can buy or sell bonds in the secondary market. So, for those who do not wish to hold to maturity they can just go to the OTC market on the floor of the Nigerian Stock Exchange and trade. How quickly can I convert bonds to cash? If you do not wish to hold to maturity, you can convert bonds to cash by selling it on the secondary market through your PD/MMS. When is the interest paid? The coupon interest on FGN bonds is paid semi-annually (twice a year) and will be credited to the account that you indicated when you filled the form. Can my interest payments be rolled over on top of the principal? The coupon is not rolled over automatically. It is credited to your accounts as cash. However, you can then use the cash to purchase the next round of bond sales should you want to enjoy the benefits of compounding interest. 6 Likes |
Re: How Can I Invest A N100,000 And Make Profit Without Working by leGeExus(m): 2:36pm On May 20, 2015 |
Kockane:Crook!!!!Naija thug...No wonnnnnder |
Re: How Can I Invest A N100,000 And Make Profit Without Working by chachazzy(m): 2:37pm On May 20, 2015 |
sluvy4tune:Except for the Op. But as for me, thanks but NO THANKS, i think i will pass. |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Nobody: 2:39pm On May 20, 2015 |
gracymicky: Nooo....u kno worth am at all....i saw ur pix, u look like MICKY...Lol |
Re: How Can I Invest A N100,000 And Make Profit Without Working by chachazzy(m): 2:39pm On May 20, 2015 |
sluvy4tune:Except for the Op. But as for me, thanks but NO THANKS, i think i will pass. |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Soclose007(m): 2:39pm On May 20, 2015 |
kenneth348:chisos. ooo see witch ..erigha con see ur brother oo |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Nobody: 2:40pm On May 20, 2015 |
Yungwizzzy: Did you say $100k or N100k ? If you don't supervise your business, you lose. I am not comfortable with that aspect. But I can pay you N3,000 per month if you invest in my business. That's your profit. |
Re: How Can I Invest A N100,000 And Make Profit Without Working by ShotCaller: 2:41pm On May 20, 2015 |
I might wanna do like some lose 500k on this please any advice...real and geniun one please Intendy: |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Oluwasaeon(m): 2:41pm On May 20, 2015 |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Oluwasaeon(m): 2:41pm On May 20, 2015 |
Play nairabet |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Deadshotz(m): 2:42pm On May 20, 2015 |
send it 2 ma acc0unt |
Re: How Can I Invest A N100,000 And Make Profit Without Working by ShotCaller: 2:43pm On May 20, 2015 |
I might wanna do like some lose 500k on this please any advice...real and geniun one please ifyalways: |
Re: How Can I Invest A N100,000 And Make Profit Without Working by scantee(m): 2:43pm On May 20, 2015 |
Guy let me give u crew of how far u can use the 100k and make profit without involving ur time much...invest it on softwares, if your in Lagos go to computer village and negotiate with the major software dealers, they will be produciing the softwares for you @ rate of N50 for one while you re-sell @ rate of N100 for one, all you needs to do is make contacts with many book shop & computer accessories shops far from computer village and negotiate with them, you will be supplying them the softwares, they will be selling @ rate of N150 per one.. Believe me you will sell a lot especial games/anti virus and office applications, people will patronize them because going to computer village to buy software will cost them extra more than N500 for fare. Note: make sure ur producing quality softwares that will enable them trust u more.. ( i did this business during my university days, though i stays in PH but buy the softwares from Lag & it will be waybill for me) i made more than a million naira from software business before i back off when i joined oil company. Bro u can give it a try: Gudluck 7 Likes 1 Share |
Re: How Can I Invest A N100,000 And Make Profit Without Working by waveskaaya(m): 2:44pm On May 20, 2015 |
Kockane:hahahaha u be self-servicer honestly |
Re: How Can I Invest A N100,000 And Make Profit Without Working by bumeks(f): 2:46pm On May 20, 2015 |
Why not buy okirika clothes 1 Like 1 Share |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Dollarboom: 2:50pm On May 20, 2015 |
If you are not too risk averse, I can manage a forex trade account on your behalf right away with guarantee. You can reach me on 08162868544. |
Re: How Can I Invest A N100,000 And Make Profit Without Working by dondada78(m): 2:52pm On May 20, 2015 |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Enegod(m): 2:52pm On May 20, 2015 |
ggrin:smh2 1 Like |
Re: How Can I Invest A N100,000 And Make Profit Without Working by xcesswag(m): 2:53pm On May 20, 2015 |
Sk |
Re: How Can I Invest A N100,000 And Make Profit Without Working by kenoz(m): 2:54pm On May 20, 2015 |
Okay. I'll comment when I wake up ... *snore* |
Re: How Can I Invest A N100,000 And Make Profit Without Working by taiwow100: 2:59pm On May 20, 2015 |
All you have to do is buy a very cheap plot of land in d next 5 ro 6 years seel it and u will make your money maybe not as much as you want sha ......No fall mugu sha |
Re: How Can I Invest A N100,000 And Make Profit Without Working by mrkings84(m): 2:59pm On May 20, 2015 |
icelord:you for no beg now then u 4 no how far. . Eh eh.... help me tell that guy to use that him 100k buy shares for any company or bank or Use start 404 biz, shikina!!! |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Abbasmh(m): 2:59pm On May 20, 2015 |
Donate am to the poor and pray for more.......you will surprised |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Cirphrank(m): 2:59pm On May 20, 2015 |
Yungwizzzy: Lend me 2,000. I'd get a domain name, and make nothing less than 50k a year after getting the domain name. |
Re: How Can I Invest A N100,000 And Make Profit Without Working by phabulous88(m): 3:02pm On May 20, 2015 |
tellwisdom: Shut the phuck up! 3 Likes |
Re: How Can I Invest A N100,000 And Make Profit Without Working by vickylois(f): 3:02pm On May 20, 2015 |
This is my opinion.. Since you have a job at the moment,you can get a land at a less developed area provided there's hope for development soon enough when you'd need your money. This is real.. Years ago,a relative got a plot of land around where we stay presently for 100,000.. This area developed so fast and just last week,he sold that piece of land for 1.2million naira. It depends on you though.. #myhumbleopinion Criticismisallowed 3 Likes 1 Share |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Ephemmm: 3:05pm On May 20, 2015 |
advocates: Give me your native state and where you are living before I can know what to say. |
Re: How Can I Invest A N100,000 And Make Profit Without Working by Nobody: 3:05pm On May 20, 2015 |
Kockane: Dis is 1 of d reasons y I luv nairaland 1 Like |
Re: How Can I Invest A N100,000 And Make Profit Without Working by sluvy4tune(m): 3:05pm On May 20, 2015 |
chachazzy: OK you have a choice bro. 1 Like |
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