y4code:
[img][/img]Hello Nairalander

I have some money left aside to invest with i was thinking of investing in shares or mutual fund but i am a novice in both and willing to learn how both work.

please gurus in the system advice me coz i dont know what the stock or mutual fund market is saying right now and i have been doing some finding but havent get a genuine information.

please help me with some vital info and if you have any advice for me about stock or mutual fund please dont hesitate to aadvice me.

i will like to ask some questions from you my uncles and aunts in the system.

which one is more better to invest in between Share or mutual funds in terms of
1...Risk
2...Profit
3...time frame.

thanks

all comments are welcome.

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.......

whitebeard:
u can lose all ur money, we know already..! Just tell us which is better

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

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.

plamonee:
Bros, please go and buy land, forget investment in instrument. Our economy is not matured enough to give you adequate returns. You can get lands in developing areas from 600k up. Within 2 or 3yrs it has doubled. While instrument is still battling with melt down, vaporization and various forms of economic earthquakes.

Don't spoil other people's side hustle,

Bro just import 2 40 ft containers of Accolades from China. E go sell wella.

y4code:
[img][/img]Hello Nairalander

I have some money left aside to invest with i was thinking of investing in shares or mutual fund but i am a novice in both and willing to learn how both work.

please gurus in the system advice me coz i dont know what the stock or mutual fund market is saying right now and i have been doing some finding but havent get a genuine information.

please help me with some vital info and if you have any advice for me about stock or mutual fund please dont hesitate to aadvice me.

i will like to ask some questions from you my uncles and aunts in the system.

which one is more better to invest in between Share or mutual funds in terms of
1...Risk
2...Profit
3...time frame.

thanks

all comments are welcome.

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

Gbayi

NonFarmPayrol:
Go to coin market cap
For coin men

Buy the following coins

Pundi x
Sugar exchange
Token pay (900% last two weeks?
Eos

6 months from now u shud have 100 to 1000 %

FCK all these offline investment

what about forex?

Mires:
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.

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

linearity:
It all depends on your risk appetite.

Buying a stock, you are investing into a single company aka putting all your eggs in one basket. The goods new is, if you did your research very well and the company did well you reap a good return...your profit are also higher, because there are no average down...it is either the company is doing well or not.

However, if the company performed badly, you are in for a rough ride and you can loss money faster.

Whereas, when you buy a stock fund, you invest into multiple companies at once, your risks and rewards are diversified...among these basket of companies, some will do well, others will do badly, but the law averages smooths out the rough edges and you don’t take too much hit when the wind start sailing against you. Also, when you profit, your profits are not very high as you have to average out the non performing stocks in the mutual fund portfolio.

If you are investing for long term, retirement; mutual fund are better than stocks...but if your investment is for short term, take the time out and do a reach on a few stock and diversify on your own. Invest in a company you know, understands their activities and are interested to follow, because the more you know about a company, the better you will understand if they are on the right path vi-as-vi the general trend and their competition.

Even when you invest in stocks, you should also gauge your risk appetites...you can look at the volatility chart of the stock and see if you can stomach it. There are some stocks that wouldn’t give you much profit because they don’t go high fast, but they pay dividends; you can settle for these and sell ‘Call Options’ on these stocks to generate incomes every single month.

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.

whitebeard:
u can lose all ur money, we know already..! Just tell us which is better

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.

nowpresence:
what about forex?

What about it? Exactly?

plamonee:
Bros, please go and buy land, forget investment in instrument. Our economy is not matured enough to give you adequate returns. You can get lands in developing areas from 600k up. Within 2 or 3yrs it has doubled. While instrument is still battling with melt down, vaporization and various forms of economic earthquakes.

Even the land investment is not assured!
Haven't you experienced or heard cases of land grabbing?

0monnak0da:


I get what you are trying to say but that binary is too simplistic. Frstly I donot think anyone loves risks unless thay are gambling. There are those who take more time to understand their investment risks before taking the risk. That does not mean they "love" risk. Infact for the more sophsticated nvestor risks can be covered usinginstruments like calls and puts.

I do not believeanyone 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. 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.Noonelives 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 ofit rather than shares.

Most share pricesrise in the long runif the business isviable 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

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.

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

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.

y4code:
[img][/img]Hello Nairalander

I have some money left aside to invest with i was thinking of investing in shares or mutual fund but i am a novice in both and willing to learn how both work.

please gurus in the system advice me coz i dont know what the stock or mutual fund market is saying right now and i have been doing some finding but havent get a genuine information.

please help me with some vital info and if you have any advice for me about stock or mutual fund please dont hesitate to aadvice me.

i will like to ask some questions from you my uncles and aunts in the system.

which one is more better to invest in between Share or mutual funds in terms of
1...Risk
2...Profit
3...time frame.

thanks

all comments are welcome.

Mutual FUnd is SCAM, I thought by now you guys are wiser

0monnak0da:
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

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.

MaziOmenuko:
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.

High Risk, your funds aer held by Mining computers,Owners can pack up anytime,this has happened loads!

plamonee:
Bros, please go and buy land, forget investment in instrument. Our economy is not matured enough to give you adequate returns. You can get lands in developing areas from 600k up. Within 2 or 3yrs it has doubled. While instrument is still battling with melt down, vaporization and various forms of economic earthquakes.

best advice so far,buy land sell one year time, guaranteed profit.

erico2k2:

best advice so far,buy land sell one year time, guaranteed profit.

Its not. Buying land is capital intensive.Do you have capital to buy land?

Mires:


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.

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.

AgamaProf:

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.

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

AgamaProf:

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.
Courtesy of Abdulkadir Olatayo Tijani.
The financial Advisor

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.

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.

0monnak0da:
What about it? Exactly?

compared to mutual funds and stock, which is better? and is it for short or long term?

0monnak0da:
What about it? Exactly?

compared to mutual funds and stock, which is better?

0monnak0da:
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

Its classified under risk-free assets even though in the real sense of it, its affected by inflation and exchange rate risks.(external forces).

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

0monnak0da:
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

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.