Investment is the placement of capital in a venture/Project/business with the expectation of deriving
income or profit from its use and appreciation.

Passive investors by arrangement cannot take an active role in the management of the business. Funds if left idle will overtime lose its purchasing power so investors use their money to seek more money. Passive investors are the real entrepreneurs as they possess time and money which are part of the Qualities of Successful Entrepreneurs.

In Robert Kiyosaki cash flow quadrant, investors benefit through leveraged and residual income. In other words, their income do not depend on their active work rather they their money working for them.

The investors this article refers to are those that occupy the fourth quadrant of the Robert Kiyosaki’s book “those who let their money work for them and not the everyday entrepreneur/business owner who works with people to make profit. The normal business owner has money but lack time but the passive investor has time and money.

Time is a valuable asset that if put to good use will yield fortune this is the advantage the passive investor has over the normal business perform.

This article was not written to publicise the business investment opportunities in Nigeria as we normally see online (Oil &Gas, Agriculture, plantain, rice farming, fashion, day care, dry cleaning etc.)the problem with these business is that the investor will have to devote a lot of time to make sure
the managers are doing their duty, else he/she stands a chance of losing his/her hard earned money.

The key word in investment finance Caution!!! Nobody loves to lose money but most often that is what happens. Most of the traditional business mentioned above, are not as profitable as bloggers make them look.

For example, so many internet farmers now abound; they encourage people to invest in stuffs they have not tried out and by the end of the day, the investor gets disappointed as
Agriculture is not a get rich quick but a profession that demands patience and passion.
Investment can be classified into
 Long term
 Short Term
 Medium Term
Long term investment are investments that mature over a long period of time like 20yrs. Medium term investment are investment that mature over a periods of 7-10yrs and above while shorts term investment will mature between 2-5yrs.

The goal is to spread your investment amongst these three classes of investment. 55% in the long term, 30% medium term and 20% short term. When your investment is spread in different areas, you can be able to handle losses better because you don’t have all your eggs in one basket.

The Smart Investment Opportunities Include:

Invest in Government Bond/Treasury bill: Purchase of T-bill means to lend money to the
government. This is a safe investment option as you stand no chance of losing your investment due to the stability of the government. The returns are not so bad too. Go to your bank and make inquiries on how to invest in this channel. The long term return is what we are after not the short term as Treasury bill matures in 3 months. When you increase your money for a period of 20yrs, you earnings would be huge. Warren Buffet increased his returns in stock over a period of 50yrs and today he is amongst the world richest people but much of his wealth was created after he turned 50.

Invest in the Capital market (stock):
The capital market is a window through which the economy is financed. After the 2008 stock market crash, a lot of people lost confidence in the stock market. The Nigerian Stock Exchange is not so transparent and people are yet to understand how it works.
Recently, Investments in the capital market has shown a lot of positive gains. Do not be afraid to
invest some of your fund in the stock market. Like warren Buffet, invest in companies that have endured overtime like Coca-Cola, Pepsi, IBM, even though the short term gain is small, in the long term you will benefit a lot. Invest with a reputable honest broker that will manage your portfolio and give you the required advice so you can make informed decisions when investing.

Invest in Properties (Real Estate):
This is a Profitable Investment that Pay throughout your life time period. Investments in properties are everlasting and will continue to turn in money into your purse in both hard times and good times. When you want to erect or buy properties in an environment, make sure you study the demographics to ensure that the population of the area will not dwindle soon.
You can also purchase properties like buildings and lands and hold them for some period of years and sell them off to make massive profits. A land my family purchased 13years ago in a swampy area in Lagos for the sum of 13,000NGN is about to be sold for the sum of 5,000,000NGN. Shops in big markets are also great investment as they keep rising in value overtime.

Invest in Cryptocurrencies:
Cryptocurrencies are hot issues of debate now. Most people see it as Scam, the other enthusiast see it as an idea whose time has come and will take over from the fiat money and eliminate it totally. Digital currencies are very volatile are too appropriate to invest all
your earnings, but the gains in cryptocurrency is great and it is not bad if you purchase some of them and hold them for the long term; you will benefit immensely from it. In August 2016, I Purchase my first bitcoin and 1btc was $400 then, this is Dec 2017 and 1btc is worth more than $16,000. In a period of 16 months it has doubled 30 times.

Big corporations like Microsoft and Walmart accept bitcoin for payment. Those who can benefit from opportunities are those who can see the future, do not go all due to its volatility and instability. but try to purchase some and keep for the long term.

There are so many cryptocurrencies out there, find them on coin market and purchase. Bitcoin and Ethereum are the 2 leading coins now and are doing greatly.

Invest in Fixed Deposit with commercial bank:
this has minimal risk except the bank goes into
bankruptcy before your Fixed Deposit matures. Essentially, the bank commits to pay you an interest on your fixed deposit at maturity (expiration of term). If you can't wait for the term to elapse, you can break your FD, in which case the bank is obligated to return your principal but may not pay you the agreed interest. Most banks offer an annual interest of 12% per annum and below, the returns are low but you are assured of the safety of your fund. The money does not lose its purchasing power as it will appreciation and grow. Security of the principal is guaranteed because of central bank regulation of commercial banks.

The Penalty for high risk is probable loss. Before you part with your wealth, be sure that it may be
safely reclaimed in when it becomes necessary. Don’t be misled by your own desires to make wealth rapidly. Always apply caution when you want to invest; it’s the only way you will last long in this journey to financial freedom.

Summarily, to invest is simply putting your money to work in hopes of getting returns in the short, medium or long term. The type of investment depends on ones appetite for risk. . An investment should be passive in the sense that it requires minimal direct input from you but still yields returns.
Every investor should seek to create a balance between risk and reward in their portfolio. If you are more focus on the reward, you are likely to lose your funds easily too same way is you are too risk averse you might lose investment opportunities.
All the investment options mentioned above have low risk and low return except for cryptocurrency and properties; be wise enough to strike a balance in your portfolio.

BIO
Nwosu Tochukwu is a self-Improvement and motivational writer; focused on aiding entrepreneurs to achieve their full potentials. I have got great resources and tips that can set you on track to achieving your dream. Read more about them Here. http://www.emillionaires.org