₦airaland Forum

Umarzy:
Your interest is added daily. The current yield of interest is 12.7%. That's per annum. So, per day, you have 12.7/365 = 0.0348% daily of your investment.

Thanks for this.
Now, if on a particular day the interest increases, say to 12.9%, that means for that day, my gain will be 12.9/365 = 0.0358% X my investment, right?
Then, if I want my interest reinvested, will the total be compounded?
Again, if on the other hand I want ONLY my interest paid (leaving the capital), how and when will this be possible?
Please, I just want to be fully cleared about this. Thanks!

Voyager707:
What about Money Market Fund? They pay between 11-13% per annum depending on the manager you chose. The interest rate does vary from day to day but it hardly goes below the above. The interest is added every day but paid quarterly and its compoundable should you choose to reinvest your interest.

It's also very liquid, you can withdraw your money whenever you like should you find a better investment vehicle. I use ARM, it's one of the highest. Do your research.

One more thing, you may have to pay management fees depending on the manager you chose, some don't. ARM's is 1.5% per annum deducted at the last quarter (kinda high I think).

Please, can you throw more light on the bolded above?
That is, how the interest is paid or compounded.

Thanks.

Olohunjedalo:
Fg Bond has minimum of 5 years tenor and you get your interest biannually.
I.e ,every 6 months . The minimum amount you can invest is ten thousand naira .

Fg Savings Bond has a tenor of 2 and 3 years and you get your interest quarterly . I.e, four times a year . That’s every three months .
The minimum amount you can invest is five thousand naira . And maximum of fifty million naira .

Treasury Bills has a tenor of maximum 365 days and you get your complete interest upfront . The minimum amount you can invest varies with different banks . But for most banks ... the minimum as at today 30 September 2018 is one hundred thousand naira .

Please, are you sure about the 10k minimum for FGN BOND? How and where can one access this instrument?

Thanks.

awesomeJ:
Bonds are kinda sold in units with each unit having a face value.
so if you buy a 15% APR 2023 FGN bond with 10m at its original price, you'd be having 100,000 units of the bond, and since the coupon is 15%, your annual interest would be 1.5m

Now when you buy at the secondary market, you often don't buy at the original unit price. You may get to buy at say N90 per unit, which implies that you'd only be paying 9m to get thesame 100,000 units.

But at the end of the year, both you who bought at 9m and the other person that bought at 10m, you'd each get 1.5m as interest, because you hold the same number of units. But while his own yield is 15%(1.5m on 10m input), yours is 16.67%(1.5m on 9m input)

So coupon rate indicates the rate at which interest is paid on a bond based on its face value, while yield indicates the actual rate of returns to an investor.

The coupon rate is always indicated in the name of most bonds, and it doesn't change throughout the lifetime of the bond.

Only changes in purchase prices bring about changes in yields to bond investors.

Bonds bought at prices below their face values have higher yields, and vice versa.

Kindly ask for any further clarification if....

Thanks for the effort.

There are better options in terms of rates and tenor. Try to study about Treasury Bills and Money Market Funds (MMF). I bet you, the right answer is in your hand!

OgogoroFreak:
The problem with I-invest is that;

* They don't give you your interest upfront.
* They don't give Certificate of investment like banks.

This means, they can decide to take "bigger risk" with your money in the future, while you think your money is in tbills.

And if that bigger risk fails, they might start using peter to pay Paul (Ponzi!) and Sterling Bank thru its legal team will distant itself from them saying something in the line of They are PARTHIAN PARTNERS we are STERLING BANK!

Very wild imagination!
@the bolded, Note that they do send INVESTMENT ADVICE (in PDF format) on every successful investment made.
Trusting your money on another entity is risk. In any case, do it at your conviction with understanding.
Peace!

ahiboilandgas:
Company A from country A come to Nigeria to set up a manufacturing company in agabara but require dollar to import raw materials and the cbn gives company A at 305 ....then company A parent company located in country A set up a money market investment firm AA the wired 10 million dollars to buy treasury bills at 14.5 then it converted at 355 at maturity AA has 4 bn naira in it NIgeria account ....the Company AA wires the nair a to company A it sister that manufacture in Nigeria the Company A write to cbn ot requires 4 bn at 305 to import machinery from country A cbn collect the naira 4 bn and give company A 13 million dollars wired to country AA parent company ....profit 3 million dollars in 1 year ......hmm cbn examiner.....dash him 100 k dollar he perfect the papers.....this what sunusi lamido was complaining about u can become a billionaire over night in Nigeria with just phone call...

Wisdom and understanding is what makes one wealthy.
Mhmmmm..

Bamz:
[url=https://www.dropbox.com/s/9ngpo855q9oziu0/Tbills%20Template%20GTB.docx?dl=0]TBills Instruction Template[/url]

Cc: Tickles001, kryptem, yungestmoney

Thanks baba....

Jejebabaa:
I doubt if i was cheated cos it was handled by a trusted uncle, its because the project was in Ogun state and its a 4 units of 3 master bedroom ensuite flat (storey building) but the rent is just 250k/annum for each flat. Worse of it all, i only get net pay of 900k as Jide Taiwo and Co gets 10% of the gross amount.

That 36m could be worth 50m in value now if not more. Beyond the immediate return is the real worth and I think it's not that bad a step afterall.

gold360:
Please I want to put in 200k for 30 days fixed deposit, most commercial banks are saying I will get a 6 percent interest.
Can some please help me and calculate what 6 percent represents here. Thanks

Dude, I would advise you to download the i-invest app on playstore and have full control of your investment right from your room and with good rate of ROI...

Ibrahim505:
I've being using them since October 2018. And I always acknowledges their services.
They are in partnership with sterling bank for now but I believed they will soon be too big to be hiding under the bank thanks to their credibility and the way they simplify money market investment.

Thanks for your input baba...

.

igbizen:
Point of correction, it’s not like mutual fund ; you can’t pull out your money like mutual fund at any time without a penalty.

Mutual Funds also have percentage deduction if withdrawal is done before stipulated (minimum withholding) date (mostly 30days).

So much deviation from TB so far. Well, back to the intent of the thread.

Have you guys used i-invest app to execute your TB mission?
Their rate seems great only for the obvious that they don't pay upfront but until maturity of the fund subscribed for. Much like a mutual fund in operation but better rates.

Who has been using the i-invest app to invest in TB and how has the experience been?

Candid view please!

BOOKED!

reservd:
Verified as how, did u just download the app or wat? There wasn't any delay when I was installing the app. I don't think the app is working at the moment though one can log in but there hasnt been updates since yesterday, figures had remained unchanged since Wednesday's update

Yes, I just downloaded the app. Done the registration and sent my documents for KYC. For days now, nothing has changed but I can only log in and receive their notification on phone.

Thanks for your response. I am patient though. Hopefully by next week they respond and I know my status on the KYC verification.

NeyofeedNigEnt:
Please
I just downloaded the app and looks confusing.
Enlight me please, do I need to open an account with sterling bank to use this app? How do i receive back my fund at the end of the tenure? I dont see where to add my account number so has to get back my money.

No. You don't need to open account with sterling bank.
As you have downloaded the app, do the necessary registration with your email, phone number and set your pin. Then send them your documents for KYC.

Navigate the app and to understand how to use it. Before you can invest, you have to first fund your wallet and the various means through which you can do that are in the app. After you have fund your wallet, then you can buy or invest for your choiced TB among the so many ( according to rate and duration).

Everything you need to do are within the app. So, take your time to study it.

For me, I sent them my KYC documents and after they were verified before I funded my wallet and I have sub for my choice package. Just to avoid inability to withdraw when the time comes; so KYC is sacrosanct.


To receive back your fund, just click on withdraw and then you will be lead to where you can fill in your details. But make sure that the account number you would be using for the withdrawal is the one connected to the BVN you submitted during your registration.



NOTE: I am not their agent and I just started with the app days back. Have not attempted withdrawal, so do this with all sense of YOUR responsibility and at your own conviction.

I hope my input have helped.

Ibrahim505:
I was investing with the app since October, I did more than 30 transactions as i always salute the team for their credible services.
iinvest is just like a saving account where you can readily get your cash back as you demand it.

Thanks for sharing your experience.
They really take investing a notch higher. Only that they don't pay upfront on their TB.

Nonetheless, their pattern seems great and promising. I just hope they keep up their lovely model and even improve on it.

How long does it take for one to be verified on FBN EDGE APP. For the past 48hours, nothing yet and I even sent mail yet no response.

Very unprofessional of such entity!

How are the qualities and what materials are the clothes; cotton, nylon, linen or otherwise?

So, who has had experience with i-invest about their dealings and trustworthiness for sizable number of months to guide others?

Their model is very nice and smooth to utilize but I still need some testimonies about their financial dealings so as to guide others.

Deknight45:
Frequently Asked Questions (FAQs) on Commercial Papers


What are Commercial Papers?

Commercial Papers (“CPs”) are unsecured short-term debt instruments issued by corporates to get funds from the public (private individuals, institutional investors, non-governmental organisations, religious bodies etc.) to meet short-term debt obligations such as working capital needs.



How do Commercial Papers work?

CPs are similar to Treasury bills (“T-Bills”) because they are issued at discount rates, which may be paid upfront or capitalized.

For instance, an investor could choose to receive N1m in the future (maturity amount/face value), which would require an ‘upfront’ investment below that face value (for instance N980,000 for a 90-day instrument at 8.0%), or could choose to invest N1m today to receive a ‘capitalized’ return above the investment amount (for instance N1.02m for a 90-day instrument at 8.0%).



What is a True Yield?

The ‘true yield’ is the effective return on investment (ROI). Using a simplified example, if an investor wants to receive N100,000 after a one-year period (365-days) and chooses to invest in a discounted instrument which is offered at a rate of 10%, the investor will pay a discounted value of N90,000 to receive N100,000 at maturity.



The true yield on that investment is not 10.0%. It is in fact 11.1%, calculated as return received as against the initial investment (N10,000/N90,000). This represents the return to the investor if the instrument is held to maturity.



The discount rate is used to calculate the present value of an investment, which differs from the yield on an investment.



Primary and Secondary Market for Commercial Papers

A CP can be purchased either in a primary or secondary market. The primary market is where investors buy financial instruments at issuance, while in the secondary market, investors trade (i.e. buy and sell) instruments purchased at primary market issuances.



The minimum purchase amount in the primary market may vary depending on the issue size. However, the minimum limit is typically set at N5m, while in the secondary market there are no standard lot sizes, but a minimum of N100m should be prepared for any purchase.



The major limitation for the secondary market trading of commercial papers is the illiquidity within the market, given that purchasers of these instruments typically only sell instruments in large volume sizes. Consequently, purchasing CPs is easier in the primary market.



What is the Tenor?

CPs are issued for time periods which match the issuer’s needs, with minimum and maximum tenors of 15 days and 270 days respectively.



What is a Commercial Paper Auction?

In the primary market, the issuer through an Issuing House sells to the market, through a fixed price subscription. Here, market participants signal interest in the issue and commit to purchasing volume sizes over an ‘offer period’ – which typically lasts only a few days.



This process is so because the rate on the issuance is fixed prior to offer to the market. This is unlike the T-Bills primary market issuances which are held in an auction format and investors are allowed to state the yields at which they would be willing to invest.



What do I Benefit from Investing in Commercial Papers?

While CPs in Nigeria are typically issued by blue-chip corporates with impressive track records of financial performance, this does not eliminate credit risk.



The discount rate on the CP is usually reflective of the credit rating of the issuer, which may be gleaned from the magnitude of the difference between the discount rate on a T-Bill with similar maturity and the CP being issued.



Consequently, CPs offer investors the opportunity to purchase better yielding instruments than available on risk-free instruments, if they are willing to take the calculated risk.



How are Commercial Papers different from Treasury Bills?

CPs have similar characteristics to T-Bills, relating to the mode of pricing. However, that is where the similarities end. T-Bills are usually issued by the government through the CBN at auctions which are typically held fortnightly, for fixed tenors of 91-days, 182-days, and 364-days.



Also, the minimum volume to participate in the T-Bills primary market auctions is N50,001,000.0, while secondary markets are very active and flexible relative to lot sizes.



Can I sell before Maturity?

Yes, you can sell CPs before maturity. A major constraint of selling CPs, however, is illiquidity and size of the minimum tradeable volume. Also, the price at which you sell depends on the prevailing interest rate at the time.



Can I rollover my CP Investment?

Usually, the answer is no. This is because a CP issuance is not a periodic auction which provides certainty of another CP investment opportunity. This, however, does not rule out the possibility of a CP investment opportunity at maturity. Nevertheless, when a CP investment matures, it can be rolled over into another money market or fixed income investment such as T-Bills and Bonds.



What are the Other Benefits of Commercial Paper?

Interest earned is tax-exempt
Since certificates are issued for CP investments, they can be used as collateral or as evidence of investment for visa application.


How Can I Buy Commercial Papers?

To purchase Commercial Papers, you can contact your account officer or send an email to brokerageteam@afrinvest.com

Lagos: Adedoyin: +234 809 778 3100

Port Harcourt: Taiwo: +234 808 718 4771

Abuja: Bola: +234 909 504 1827

Quite enlightening. Another instrument but the capital requirements in too much on the high side.
Is it possible or an avenue for low end investors to participate in this instrument??

Joybringer:
HND holder can't do master without PGD. Convert your HND to B. Sc @kwasu. Check the flyer for more info.

How many years does the school run the program for (one year or two years duration)?

kingthereo:
HOW TO MAKE MONEY EXPORTING AGRO PRODUCTS



THE FIVE (5) GOLDEN REQUIREMENTS YOU NEED FOR AGRO EXPORTATION AND ALSO LEARN HOW I MAKE MY MONEY FROM THIS BUSINESS

I called it FIVE GOLDEN REQUIREMENTS because these are the major things you need to succeed in this agro exportation business. Let me take each one after the other:



1. ENTREPRENEURIALSHIP SKILL OF BUYING AND SELLING:
If you’re good in buying and selling of goods and services, then you’re good to go for this Agro Exportation Business. Believe me there’s no big deal in exportation business. It’s a business I am into and that’s why am telling you this. You don’t need a professional to tutor you as you might be thinking. It’s very simple! With an Exportation Website a client contacts you for a product and all you have to do is to source for the very products and get it delivered to him/her in respective of the country of destination. You don’t need to be a farmer, expert in the agricultural field before you can start Agro Exportation Business. Now, this is what I do; I have an Exportation Website and when I get an Order to export a particular product, I simply source/buy these products from local within and get it delivered to the buyer with the use of either NIPOST, EMS or DHL as the case may be. In other words, I buy from the local and sell to international clients.

Click Here For Details

CAN YOU MENTOR SOMEONE UNTIL SUCH INDIVIDUAL ACHIEVE SUCCESS AND BECOME PROFICIENT IN THE BUSINESS?

Many will make promises and boast about their success but when you transact with them, they leave you half-baked. Mentorship is a crucial factor in bringing up entrepreneurs in any venture. If only you can be different.

WILL YOU REALLY BE THERE TO PATIENTLY GUIDE YOUR CLIENTS??


THANKS!