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Buying Gold In Form Of Jewelry Or Mutual Fund. / Shares (stocks) Or Mutual Funds / Why Invest In Treasury Bills When Theres Stanbic's Mutual Funds? (2) (3) (4)
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Re: Shares (stocks) Or Mutual Funds? by Lexusgs430: 12:05pm On Apr 22, 2018 |
y4code: Shares is gambling with your funds, you might win or lose. You have to be ready to tie down your capital for longer periods..... You might be lucky again on the other hand, buy low and price sky rockets. You can either sell off or hold back and speculate..... Mutual funds is handing your money to professionals to take a gamble on your behalf....... They would charge you fees for managing your portfolio....... 1 Like |
Re: Shares (stocks) Or Mutual Funds? by 0monnak0da: 12:08pm On Apr 22, 2018 |
whitebeard:If you know anything about investing you will not ask that . None is better.People have different investment objectives and horizons. What is good or better for a 25 year old might not be for a 45year old or 65 year old. A Leaving that to one side there are hundreds of diffferent shares so "investing in shares" is not ONE choice to be considered a binary with "investing in mutual funds" that isjust like asking having tall or short friends which is better. If you choose to invest in shares investing in pharmaceutical companiesisnot the same as investing in IT companies or investing in oil companies they are very different industries and cannot all e lumped together as a single investment decision . Even within industries companies are different in their performance. We just heard Lafarge declare a loss while Dangoteis doing fine. Investing in Guinnes is very different from nvesting in Nestle. They are not just "investing in shares" . Choosing which share to invest in is a matter of expeerience and some luck. Funds on the other hand are a basket of shares chosen by another "person" and managed for you. Funds may also invest in other things than shares e.g government bonds They charge a fee as well Which is better going to the market to shop and cook or going to a restaurant?? It depends , there is a time for everything and different people have different needs at different times 2 Likes |
Re: Shares (stocks) Or Mutual Funds? by Mires: 12:09pm On Apr 22, 2018 |
There are several things to be taken into consideration before one ventures into investment. I will limit my discussion to just one considering your request after which the choice will be yours. There are two types of investors; risk averse and risk lover. For risk averse, sometimes call risk free in some texts, returns on investment (ROI) is usually low. While for risk lover, ROI is usually high. Risk averse are those who don't like taken risks in terms of investments. Most of them rather prefer monthly salary. They are the set of people, Kiyosaki assumes to be running a rat race. Risk lovers are those who embraced risks and rather prefer to lost their #1m rather than remaining with the #1m tomorrow if it can't be double by tomorrow. These are the people who make up the wealthy class. They don't like being associated with monthly salary. Having said all these, there's a short term treasury bills which is for risk averse given that you are always or 100% sure of your investment. Is it really investment? I disagree just like many professionals in the field of economics and allied courses will disagree. It is rather an avenue to loan an idol cash to the federal government rather than allowing commercial banks to trade with the money with little or no interest added to it. It is still advisable to channel one's idol cash to it rather than fixed deposits since ROI in the former is relatively higher to the latter. To be specific, it's about thrice the latter. Does it make rational sense to use for instance #1m in buying treasury bills for a period of 364 days if my nature of job can give me time to invest in a viable business? The answer to this question is linked to my kind of person; risk averse or risk lover. 1 Like 1 Share |
Re: Shares (stocks) Or Mutual Funds? by Nobody: 12:18pm On Apr 22, 2018 |
plamonee: Don't spoil other people's side hustle, 1 Like
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Re: Shares (stocks) Or Mutual Funds? by Nobody: 12:20pm On Apr 22, 2018 |
Bro just import 2 40 ft containers of Accolades from China. E go sell wella. y4code: |
Re: Shares (stocks) Or Mutual Funds? by Nobody: 12:21pm On Apr 22, 2018 |
Mutual funds in Nigeria is not encouraging If I were you,I will invest 30% in forex I.e buy $ and lock it up in dom acct 40% in ZENITH or GT bank be rest assured of 8 to 15% appreciation/ yr no matter the bear n fluctuating crude prices...dz two banks are bear resistant The rest 30% in 3mths TB roll over Provided you are employed and earn money monthly..... Do this for 5 yrs...you are out of the rat race 3 Likes |
Re: Shares (stocks) Or Mutual Funds? by Nobody: 12:21pm On Apr 22, 2018 |
Gbayi NonFarmPayrol: 1 Like |
Re: Shares (stocks) Or Mutual Funds? by nowpresence(f): 12:22pm On Apr 22, 2018 |
what about forex? |
Re: Shares (stocks) Or Mutual Funds? by 0monnak0da: 12:22pm On Apr 22, 2018 |
Mires: I get what you are trying to say but that binary is too simplistic. Frstly I do not think anyone loves risks unless thay are gambling. Rather there are those who take more time to understand their investment risks before taking the risk. That does not mean they "love" risk. No they UNDERSTAND it Infact for the more sophsticated nvestor risks can be covered usinginstruments like calls and puts. I do not believe anyone would call Warren Buffet a risk lover. Everything he ever talks about is understanding risk, understanding a business before investing. The claim that gamblers make up the wealthy classis really absurd. They make up the homeless class Certainly anyone who as you say would rather prefer to lost their #1m rather than remaining with the #1m tomorrow is a gambler not an investor. Age is a key factor in investing.No one lives for ever and the purpose of investing is to make money hopefully you can use. If you retire at 60 and receive a gratuity I would advise that you invest in instruments with lower risk and high liquidity like government bonds most of it rather than shares. Most share prices rise in the long run if the business is viable but will that happen when it is convenient for you? That too is part of the risk to be managed and that is why a 25 year old is different from a 50 year old Also if you do not understand risks, you do not understand shares and funds then again I would advise government bonds. Investors should stick to what they understand 2 Likes 1 Share |
Re: Shares (stocks) Or Mutual Funds? by Nobody: 12:24pm On Apr 22, 2018 |
linearity:Investment in stock is not putting your eggs in one basket oga. You could invest in stocks across different industries thus avoiding covariance risk. He could buy stocks in companies under manufacturing, service to banking sectors hence having a well diversified portfolio. However, stock is for high risk investors. Mutual fund is the pooling together of many investors' funds and investing them in the negotiable instruments(e.gstocks) or non-negotiable(e.g insurance policy).The beauty about the mutual fund is that they are regulated concerning the risk of the instruments they invest in by Investment and securities act, 2004. Mutual fund in essence guarantees moderate risk(moderate return). So advising the OP, in a highly volatile economy as Nigeria, which mostly is dependent on oil(likelihood of bearish market because the economy lacks the fundamentals for real development). He should invest in Mutual funds. Empirically, this decision could be verified using the CAPITAL ASSET PRICING THEORY or the arbitrage pricing theory to determine the real value of the stocks you want to buy. You could also carry out a trend analysis(if the market is not efficient) to determine the trends of the stock price you are interested in(whether bearish or bullish) and envisage your returns. 1 Like |
Re: Shares (stocks) Or Mutual Funds? by chloride6: 12:25pm On Apr 22, 2018 |
whitebeard: Lol.. In my opinion mutual funds are of course the best options because it allows you leverage on the expertise of your asset managers. The average asset manager has CFA qualification, an MBA, advanced technological tools and at least 5 years finance experience. Even so, they still get it wrong. Please send me a PM if you have further enquires so I can setup a meet. A one on one discussion may be useful in clearing up obscurities. I am a financial analyst in training at Nigeria's second largest Asset Management Business in case you are wondering. 1 Like |
Re: Shares (stocks) Or Mutual Funds? by 0monnak0da: 12:41pm On Apr 22, 2018 |
nowpresence:What about it? Exactly? |
Re: Shares (stocks) Or Mutual Funds? by TroubleMaker47(m): 12:46pm On Apr 22, 2018 |
plamonee:Even the land investment is not assured! Haven't you experienced or heard cases of land grabbing? 2 Likes |
Re: Shares (stocks) Or Mutual Funds? by Mires: 12:49pm On Apr 22, 2018 |
0monnak0da: Age has never being a limitation to anything on earth. At what age did Colonel Sanders, founder of the KFC restaurant start KFC? I just used an instance to invalidate your submission of "If you retire at 60 and ...." This was exactly the case of Colonel Sanders. Rather than opting for your submission, he chose to take the risk by being a risk lover of going into uncertainty rather than certainty. Few years after he became a multi billionaire and KFC is still growing stronger with thousands of branches all over the world including the zoo country. Studying and understanding investment prospect is not the same as venturing into it. The latter is practical while the former is theorizing. When one ventures into the world of unknown, he's practically a risk lover. It's either the person comes out successful or fails. Point of correction. Don't misquote me or quote me out of context. I never said that "Gamblers make up the wealthy class. Finally I wish Warren Buffet that you pointed out can be willing to tell you how much millions of dollars if not billions that he has lost even after he assumed he understood the business. |
Re: Shares (stocks) Or Mutual Funds? by 0monnak0da: 12:51pm On Apr 22, 2018 |
The question I would pose to Mutual Funds in Nigeria is Does your fund outperform Treasury bills and by how much. Also you want to see performance for several years though even that cannot predict future performance . Just like Arsenal stopped winnng the Premiership in 2004 If Treasury Bills offers 13% a year and Mutual Funds 18% what you need to bear in mind is the former is guaranteed and less risky / The main risk for Treasury bills is currency risk for foreign nvestors which does not apply in making a choice between the two if your funds are sourced locally |
Re: Shares (stocks) Or Mutual Funds? by MaziOmenuko: 12:51pm On Apr 22, 2018 |
Read up on crypto currencies. Take out time and study it very well. Decide if you can go into it or not. You can start by taking note of the price of 1 or 2 of them at cryptomarketcap and monitor their growth over time. (You can start with etherum, neo and ripples; those 3 have great potential). No shares or mutual fund can give you a double digit profit, crypto does that on weekly basis. 2 Likes 1 Share |
Re: Shares (stocks) Or Mutual Funds? by erico2k2(m): 1:00pm On Apr 22, 2018 |
y4code:Mutual FUnd is SCAM, I thought by now you guys are wiser |
Re: Shares (stocks) Or Mutual Funds? by Nobody: 1:00pm On Apr 22, 2018 |
0monnak0da:In any economy, the treasury bill is risk-free and the mutual fund has less to moderate risk(regulated by ISA 2004). But the one thing about the treasury bill is that it is often low except in some countries with very high risk or poor debt profile. |
Re: Shares (stocks) Or Mutual Funds? by erico2k2(m): 1:01pm On Apr 22, 2018 |
MaziOmenuko:High Risk, your funds aer held by Mining computers,Owners can pack up anytime,this has happened loads! |
Re: Shares (stocks) Or Mutual Funds? by erico2k2(m): 1:02pm On Apr 22, 2018 |
plamonee:best advice so far,buy land sell one year time, guaranteed profit. 1 Like |
Re: Shares (stocks) Or Mutual Funds? by Nobody: 1:05pm On Apr 22, 2018 |
erico2k2:Its not. Buying land is capital intensive.Do you have capital to buy land? 1 Like |
Re: Shares (stocks) Or Mutual Funds? by 0monnak0da: 1:13pm On Apr 22, 2018 |
Mires: Firstly I was not talking about limitation or not. The fact is if you are 25 you can afford to buy shares and "forget" about them in the expectation that they would rise in price in 15 year, 20 years or 30 years. People do get rich from buying shares. it does happen but rarely in 5 years. The other thing is the fact that within weeks of buying shares they could lose 50% of ther value and not recover for 5 years. Eventually going on to make the holder a small fortune. A retiree does not have that kind of time. His investment horizon is very different from that of a 30 year that is a simple reality. Saying age has never been a limitation to anything on earth is just hyperbolic exuberance. Age is a limitation to almost evrything because people die , they just stop breathing and expire and if you plot a graph for people after the age of 65 you will see an acceleration in death rate. The other thing is if a 30 year old loses his life savings he can start over nt so for the average 65 year old I did not misquote you I made very clear what I was doing I paraphrased you . and I stand by it . Any person who has 1 million and isprepared to lose it the next day as you say is IN MY OPINION gambling. No misquoting at all. Any other person on thiis thread can interpret it as they see fit. Colonel Sanders? You are living in the world of Motivational books. How many such stories happened in the last 50 years. A sensible person studies a thing before jumping in, stock market investing is no exception. Jumping into the world of the unknown with money is gambling. First you must "theorize" as you call it and then practicalize. You don't just practicalize and call yourself a risk lover without knowing what you are doing that is recklessness. FYI what drives the share prices is the decisions of fund managers as well as the performance of the underlying business. Fund managers are professional managing trillions of dollars and it is theirr decisions that produce the movements we see daily. It is not a random thing. They are not risk lovers jumping intothe unknown. 2 Likes |
Re: Shares (stocks) Or Mutual Funds? by 0monnak0da: 1:24pm On Apr 22, 2018 |
AgamaProf:Trasury bills are not risk free. Nothing in life is risk free. The main risk with treasury bill is currency devaluation/inflation. Ifyou buy Treasury bills at 13% and by the time it matures your principal has lost 50% of its value as has happened with the Naira recently over a period of months then you are running very fast and still moving backwards. There is always a risk with government debt that they just print money to pay back or the currency is devalued by external forces outside government control but you are correct that mutual funds are riskier. Not only are they risky in terms of loss. There is no promise of performance |
Re: Shares (stocks) Or Mutual Funds? by linearity: 1:26pm On Apr 22, 2018 |
AgamaProf: Read my 2nd to last paragraph, I mentioned you can diversify by investing in many stocks. Buying a stock, you are investing in one company period! Your write up agreed with mine...you only invest in multiple companies when you buy stocks from different company, but when you buy stock as in [singular], you invest in one company with no diversification. Not all stocks are high risk, there are many stocks whose volatility charts are below those of mutual funds, many blue chip companies that pays dividends are in this category. Most people buy them, because they are stable and make money from the dividends and a Call Options. 1 Like |
Re: Shares (stocks) Or Mutual Funds? by galantjoe(m): 1:27pm On Apr 22, 2018 |
My. Investment advice to op is Invest in Stanbic IBTC money market mutual fund Risk- same as deposit at bank Return- currently15% per annum accrue every day. Year high is 18% p.a. You can disinvest by giving 5 days notice Minimum investment amount: N50,000 Visit any Stanbic IBTC Bank for more information. 3 Likes 1 Share |
Re: Shares (stocks) Or Mutual Funds? by nowpresence(f): 1:28pm On Apr 22, 2018 |
0monnak0da:compared to mutual funds and stock, which is better? and is it for short or long term? |
Re: Shares (stocks) Or Mutual Funds? by nowpresence(f): 1:29pm On Apr 22, 2018 |
0monnak0da:compared to mutual funds and stock, which is better? |
Re: Shares (stocks) Or Mutual Funds? by Nobody: 1:29pm On Apr 22, 2018 |
0monnak0da:Its classified under risk-free assets even though in the real sense of it, its affected by inflation and exchange rate risks.(external forces). |
Re: Shares (stocks) Or Mutual Funds? by saviola1: 1:32pm On Apr 22, 2018 |
one and half plot of land , fenced with gate and has a floor building for sale at Emene Enugu ,before Eco bank at emene ..@6million naira |
Re: Shares (stocks) Or Mutual Funds? by Nobody: 1:33pm On Apr 22, 2018 |
0monnak0da:It guarantees performance to some extent.That is why they cannot investment in any kind of investments.All to ensure safe returns to investors. As an investor, I can sue them if they don't comply to ISA 2004. 1 Like |
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