₦airaland Forum

mukina2:
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BABBBY DADDDDDDDDDDDDDDDDDDDDDDY

sekem sekem

Alexis on fire!!! Why did they remove Drinkwater

babakess:
YOU ARE RIGHT FGN BONDS CAN ALSO BE COMPOUNDED MY ASSUMPTION IS BASED ON LOW CAPITAL INVESTMENT ............U CANT REALLY COMPOUND UR EVERY SIX MONTHS RETURN.....UNLESS U CAN BUY BONDS FOR VERY LOW AMOUNT ...I AM NOT INTO BONDS .......AS AGAINST TBILLS WHERE AFTER ONE YEAR U CAN REINVEST INTEREST AND CAPITAL...OFF COURSE ...BONDS WILL HAVE THE UPPER HAND OVER TIME WHEN U CAN REINVEST THE INTEREST........PLEASE WHATS THE MINIMUM AMOUNT TO BUY FGN BONDS

I have no idea sir. I don't buy bonds or Tbills directly. I deal in that market via mutual funds.

babakess:
TBILL FAR BETTER THAN BONDS ....................

IF YOU BUY FGN BONDS @ 15.5% OVER THE 5 YEARS.......TOTAL RETURN=77.5% ASSUMING NO COMPOUNDING AS INTEREST IS PAID SEMI ANNUALLY

NOW COMPARED TO TBILLS U BOUGHT @ 14% ...OVER 5 YEARS YOUR RETURN WONT BE 5*14%=70% BUT BECAUSE OF COMPOUNDING...IT WOULD BE 92.5% WHEN DIVIDED BY 5 U GET 18.5% ROI PER ANNUM...

Just a note.

You can compound on FGN bonds also. In fact you get to compound twice in a year instead of once with TBills.

To compare objectively, if you are not compounding one, you should not be compounding the other...

e.g. Using 100,000 naira as an example at the same percentages you have used above and for 5 years. The following is what you get at the end of 5 years

1. FGN Bonds: 210,946.73
2. TBills: 192,541.36

Note: I have not considered any other information besides what you have above as I treated this basically as numbers. So in actual fact, Tbills may be better than FG Bonds but not by the assumptions made by you above.

Moses247:
Sorry what do u mean by not guaranteed ?? is it the capital or The interest??

Quaranteed in layman terms means stable... you get a certain percentage every month e.g. 13.75% as against variable FBN can be 10%, can be 20%, can be 5% hypothetically speaking.And the capital remains stable also.

Quaranteed could refer to capital or interest or both. It depends on the kind of financial instruments the fund invests in.

For example FBN Money Market Fund, Capital is termed to be quaranteed because they try to maintain a unit value of 100 naira even though yield may differ. However, for FBN Heritage Fund, the capital or interest is not guaranteed because the value of a unit could go up or down and yield can go up or down also ...typical like what you would experience is the stock market.

Quaranteed is however subject to interpretation so it is good to seek for clarification from the Fund manager e.g. KGIF was quaranteed but they clearly said their benchmark was MPR which was around 12-13% for a while. Now they relate to some other term which is lower but they have not done anything wrong. In future, they can decide to match to something that gives 20% which is what I think Fidelity is offering above also.

Moses247:
which of the banks mutual funds??

I do FBN capital but the yield is not as good as what you have above averagely (they average between 13-14% and not guaranteed).

***Modified: wondering when the 0.5% is applied though...for Mutual Funds, what you see is what you get. For this, if they apply their fee on the 13.75, then you end up with 13.25%... then my FBN cap @ 13-14% variable will be better.

However, you can contact Cowry Asset directly if you have the minimum amount they are willing to accept and you do not mind a holding period of 6 months. See the attachment above in the reply to Ernie

http://www.cowryasset.com/asset/index.php

ernie4life:
where can I get more details of this?

Please find attcahed

Moses247:
got this mail frm fidelity bank.....
Find Below the features of the FSL Bond Indexed Investment Notes.
Regards
FIDELITY SECURITIES LIMITED BOND INDEXED INVESTMENT NOTES
PRODUCT FEATURES: This product was borne out of the need to present our customers with an alternative investment in the capital market; It also comes with the positives of any fixed income instrument (Coupons/Interest). The Investment Note is tied to the purchase and guaranteed returns of FGN and Corporate bonds in the Capital market. It carries the features of a mutual fund but comes with the flexibility of any money market deposits product. This one is particularly indexing the recently issued FIDELITY BANK PLC Corporate Bonds.
• The Interest rate is guaranteed at 13.75% for one year only (After which it will be reviewed in line with prevailing market conditions)
• The Tenor of the Investment is One year (1 year) with a minimum holding period of 270 days. (We however allow lower number of days based on
request)
• Unlike most other Bond Indexed Mutual funds, whose returns fluctuate in response to the Bond market, this Bond Indexed Investment Notes gives a
guaranteed return for the year notwithstanding the performance of the FGN or CORPORATE bonds in the secondary markets.
• Interest are paid to customers every 90 days with automatic renewal thereafter. ( We also allow customers that have monthly cash flow requirements
to take interest monthly)
• Customers are allowed to break the investments whenever the need for cash arises but will have to forfeit 20% of the accrued interest on the
investments.
• It is open ended and investors are allowed to join in the investment anytime.
• There is an Asset manager fee of 0.5% on the accrued interest.
• The Investment is tax Free as it is tied to the tax Free FGN/ Corporate Bonds
• The Minimum Investment is N1M.
• Investment Holders are allowed to increase their investment whenever they wish to do so
hmmmm abeg who don invest in this bond before

I have not but it looks good. However, why not invest in the bond directly unless you are looking at the cash flow benefits.

That is one of the major reasons why I do Money Market Funds...it is a savings account with better yield.

Also, Zamfara state has a bond with 17% yield and some companies are offering it as a product for 15.5% with minimum holding period of 6 months.

nonyowen:
ythank u thats a very gud one that seem to be the general opinions of the other pple investing with them that i have met. bt 120k on 100k after a year is not 20%

Yes 120 on 100k is not 20%. I was referring to if you do not get your money back after 12 months, you would have made 20% on your initial investment...you technically have your 100k back and an additional 20k

nonyowen:
ok well maybe this is one of those businesses. yes they lend the monies to individuals companies and sme's and collect 30% from them. i did some research b4 joining them and honestly i haven't regretted it thats why im finkin of increasing my investment bt i wnted to get general opinions first

I would say keep your 100k there and keep earning your 10%. Before you attempt to withdraw if you intend to, make sure you have collected all your money and maybe some interest. A whole year of being with them gets you 120k...which is 20% on your money in a year (which already beats most investments in financial instruments).

If I were you, at that rate, I will keep the 100k and keep earning my 10k for life ...I would not add to it until I have met people they do business with. I would want to think that is my definition of balancing my risk and reward based on my person.

nonyowen:
thanks for ur opinion i will ask for my capital bak by months end. Altho they have never faulted in paying my 10% into my acc every month since i joined

There are businesses that can earn you 10% a month but you need to find out what they do with you money.

There are always pple out there that need money and are willing to pay that much return every month (doubt on 100k though) ...don't be greedy though.

High Risk...High Reward, don't fall into the trap of High Risk...No Reward

blank:
6 years down the line and your prophecy has not come true yet. It is not even close to coming true. Amen Estate is still too far from livable areas.

Exactly! The OP was overly optimistic and sincerely that pisses people off.

I like the houses though and might be a nice place for those who work around the ibeju lekki and Epe area. I personally will prefer to stay here than Ikorodu. However, the price no be for here...

[quote author=ukay2 post=38115032][/quote]You are quite right about that. That is a deal breaker for some pple.

I seek solace in the simplicity of being able to manage a mutual fund (Online, you see the money grow...day by day) without having to contact anyone except when I need to make a withdrawal (i hear some funds now have online withdrawal forms sef), no penalties for withdrawing once the holding period has been exceeded and for some funds, you can get your money in 24hrs as Oga Ednut mentioned.

feelamong:
I will repeat this anywhere!! Mutual funds is for lazy investor!!

I can go to many banks now and get 12% on my N1M deposit.....it only takes me going to branches or seeking out account officers that have targets to meet!

If KGIF is 13% guaranteed then its no more like your usual mutual fund! I will always seek for better returns on my loose money and that is why I spend time reading on investments and also talking to bankers all the time.

why would anyone invest his hard earned money in a fund that will be earning him 6 - 8 % p.a

hmmmmm.....i feel like spanking you

You have refused to learn

feelamong:
All these funds self!!

where do they invest all this their monies that gives these very tiny and meagre returns??

I have been investing in FGN Bonds and Treasuries bills since jan and have never gotten any yield lower than 12%. Infact from my checks the average yield I have is 13.22% and that is only becos I leave some funds on call in the banks for some days before I invest some times...

even doing fixed deposits beats these returns!!

anyway Mutual Funds is for lazy investors and as such they should get lazy returns!!

At first, I thought let him be then I remembered why I started contributing to this thread, "to learn and to pass across information" especially to those who would want to know... Mutual Funds is not for lazy people, but I can tell you that lazy people are the ones that will not see the benefit in it. If you do your risk assessment seriously you would see what I mean. By all means different people subscribe to different avenues of investing their money due to certain preferences...

I will leave you with the link below to read, learn and check your facts. Feel free to come back here and do some more learning.

http://www.fbncapital.com/asset-management/fund-prices

Maybe when you are interested you can visit the sites of other fund managers and do some reading before you write next time.

By the way, I invest a portion of my money in stocks, bonds, REITs and mutual funds so I have been around and still around.

Redoil:
i want you people to know one thing Mutual fund is more than a scam in Nigeria. I have invested in almost all Mutual fund in Nigeria none has ever return more than 1.5% has dividend. has for NIGFUND, i haven't heard any thing from them since the past five years.
i pity Nigerians

Redoil,

Apparently, you are an uninformed investor. Tell us the mutual funds you have invested in and we will help to break it down for you (you dont even need to play music, i will bring my own singles to do some break dancing).

ernie4life:
we need more details, like what mutual fund did you invest into? with this we can calculate the expected yield per year

if they paid you 12000 over 5years period it means the yield was 20% over the years which is kind of poor but then we have first of all know which fund you invested into


ARM has lots of funds, so which one did you invest into?

Exactly.

If I remember, there were years they were also in the negative region on some funds.

Perfectly normal iF you ask me...and way better than if it was in a savings account.

X2X:
There has always been disparity between the official and parallel FX markets. Devaluation does not solve that problem.

In other words, we know JP Morgan are only after their own selfish interest, so, if them like, make them go hug transformer. Priceless.

It is not so much about the difference, it is the gap (too large for comfort). Even the banks charge as much as 8% above the CBN rate...so you begin to wonder as a "layman"...weren't we taught price is determined by the forces of the demand and supply.

feelamong:
Gbam!!

Anybody who has read Investment Bikers by Jim Rogers will understand why CBN should be applauded for not falling to the whims and caprices of these briefcase portfolio managers!

yes we need FDIs but not portfolio managers that are only fair weather friends!

Once again Kudos to the CBN gov for this!

I will always support small term pains for long term gains!

(Insha Allah!! we must make money this year!)

I am not for organizations that try to control what people do and how they think. I am for the strong man that stands his grounds based on his beliefs against such organizations or the society at large. Yes, before things will get better, they may get much worse but I am not convinced that the naira selling at the CBN rate is close to its true value. The gap between the CBN rates and the black market is just too wide for comfort and the way it has been going up and down is something else. Nevertheless, I wish the CBN Governor well and I hope he and his advisers are doing the right thing. I would want to think a devalution is in order but what do I know ...am no economist.

gr8iydy:
hello, I bought shares from union bank back in 2005 and I use to received my dividend for sometime, but after the issue of economy melt down they stopped sending report and dividend to me...... though have not been to there office to ask... anybody with idea of what could have happen ? plz fact info I need cos am planning to go and I want to hold something to check with what I will b told .... thanks

Got to

GTL Registrars (Formerly Union Registrars Ltd.)
2 Burma Road Apapa | Lagos

They will be able to answer your questions. However note the following;
1. Do you have paper certificates? If you do, you need to go and dematerialise them
2. Do you have a stock broker? if you don't, you need to get one

If you have a stockbroker, let that be your first point of contact. They will explain what you need to do before going to the address above.

class0247:
A friend of mine who is not base in Nigeria is thinking of fixing 30 million naira on fixed deposit in a period of 2 years and wish to know how much he is going to make as profit in that period
Please can anybody help explain how it works..thanks

Unless a bank is ready to offer you double figures (10% and above for that amount of money), don't fix it.

Invest in a Mutual Fund (specifically Money Market Fund) at a conservative rate of 12% (usually around 13-14% of late) per annum without interest compounded you would be getting ~7.2m and tax free too. However, if you invest in one that pays out quarterly, you can make as much 8m interest compounded. You can visit this page for further reading https://www.nairaland.com/1912965/mutual-funds. Try to get him to read from page 1-13...it will be worth it.

There are other investment vehicles of course like shares, real estate but the above is what compares with your fixed deposit option.

bigass:
i am loading Oando and many other failed stocks. there will be a rebound soon

Am buying also, not expecting a rebound just yet but these bears shall pass some day and the bulls will reappear.

...Hard to look at my stock broking accounts in past few weeks, am sure I am taking hard hits. I am in for long term though and this is the time to buy more...Sales sales sales

This brings back to this thread... ~1% a month may seem small but if it makes you sleep well at night, it is heavenly. Mutual funds give so much peace of mind. It will not make you super rich but you will be able to compete favourably with inflation.

nio68:
people may sell cos they want to raise for something important to them eg.rent payment, school fee etc.. not because they think it is a good idea to sell

It is still a good idea to sell, if they knew it would turn up 10-50% in the next coming weeks...do you think they will sell? When you are looking to sell there are usually choices to make...and people will generally go for what they think is best.

"I admit to buying stocks, but I think that it's a very dangerous idea. Remember that for every stock you buy, there is someone on the other end who thinks it's just as good of an idea to sell" Culled from Business Insider

hbrednic:
The effort is in vain unless the registra have your specimen signature in their system

modified***
Elai147 is correct, they will post payment (cheque) to her address. They do not need signature specimen to post a cheque.

Unfortuantely, it may take months before she gets it or she may never get it. However, she can always follow the process of getting a signature specimen and e-dividend form sent to the registrars (whenever she can) then take the expired cheque (if more than 6 months from date on it) to be revalidated or just say she has not received it. They will then schedule an e-payment to her account.

oh! I see the point on e-dividend without signature specimen

lancee:
or you take it to the registrar @ vicoria island ..make sure the e dividend is signed/stamped by ur bank [i think am correct]

Yes you are...better to be taken to registrar though.