₦airaland Forum

EquityM:
The rate is bearish today, as I only made 300+. The government just auctioned TB, thus making the rate lower today. Tomorrow might be better. Equity is starting to get on track; we will need to be patient as this market is tricky.

Oh I see
I'll observe the return I get from stanbic tomorrow and let you know

Gratefulme:
Since they are sleeping, would it be wise to buy them now. Interested in investing in those 3.

You can surely get them if your goal is long term (1year and above).

Once you buy, don't go and withdraw if you see small reduction in the value o

Just leave it there and watch it for at least three months to see and understand the working of equity.

Hello bro, Just curious..with this fixed income fund, is Capital preserved just like the regular MMF? or there are chances your initial amount is not complete depending on how market goes?

EquityM:
Use the mobile web; the app does not display all the rates accurately. The price is the current rate.

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mikeayus:
Hello bro, Just curious..with this fixed income fund, is Capital preserved just like the regular MMF? or there are chances your initial amount is not complete depending on how market goes?

Your capital is not preserved o

The market fluctuations of the underlying stocks determines your total amount

Capital is safe in fixed income funds; however, since it pays dividends, adding more units should be your priority at first.

mikeayus:
Hello bro, Just curious..with this fixed income fund, is Capital preserved just like the regular MMF? or there are chances your initial amount is not complete depending on how market goes?

Thanks @welzyj2 and @EquityM but I am now confused as to if my capital will never go lower like it can happen in Equity fund and not in Money Market Funds

The goal of equity is to grow; if you can't see your money fluctuating up and down, then equity might not be your thing. A Naija girl on this forum living in the US asked this question, and now she started with 3M; despite small dips, her capital is getting back on track. Equity is like locking your money up in a fixed deposit, leaving it there, and seeing wonders. No matter what happens, you are unlikely to lose your money. Accumulating wealth is not like a Ponzi scheme; there are no corners to success. MMF gives you steady income while others do the dirty work for you. I made 45k today from equity today, tomorrow I might lose 20k from it or I might even make 120k; only God knows. On a final note, if you are not patient, kindly stick to MMF.

mikeayus:
Thanks @welzyj2 and @EquityM but I am now confused as to if my capital will never go lower like it can happen in Equity fund and not in Money Market Funds

https://finance.threadnix.com/news

Follow filtered stock news , curated daily and make informed decision before everyone else.

EquityM:
The goal of equity is to grow; if you can't see your money fluctuating up and down, then equity might not be your thing. A Naija girl on this forum living in the US asked this question, and now she started with 3M; despite small dips, her capital is getting back on track. Equity is like locking your money up in a fixed deposit, leaving it there, and seeing wonders. No matter what happens, you are unlikely to lose your money. Accumulating wealth is not like a Ponzi scheme; there are no corners to success. MMF gives you steady income while others do the dirty work for you. I made 45k today from equity today, tomorrow I might lose 20k from it or I might even make 120k; only God knows. On a final note, if you are not patient, kindly stick to MMF.

Bro please does norrenberger have equity fund?

Some reviews I've seen on the internet; they do have. However, you should have an equity account with top-tier fund managers for efficiency.

Keith05cool:
Bro please does norrenberger have equity fund?

So far, my experience with fixed income funds has shown that they offer multiple ways to make money. The daily interest accrued is different from the dividend you receive biannually, as well as the coupons, peak periods, and discounts that occur all year. To smile, one must have a large sum invested in it. MMF provides consistent income, whereas fixed income adds compounding and growth to your funds. Having both funds in your portfolio is not a bad idea for those looking for low-risk investments.

Thanks for the detailed explanation, my question was originally regarding the fixed income fund and not equity fund. Just wanted to know the difference between fixed income fund and regular MMF. Thankks

EquityM:
The goal of equity is to grow; if you can't see your money fluctuating up and down, then equity might not be your thing. A Naija girl on this forum living in the US asked this question, and now she started with 3M; despite small dips, her capital is getting back on track. Equity is like locking your money up in a fixed deposit, leaving it there, and seeing wonders. No matter what happens, you are unlikely to lose your money. Accumulating wealth is not like a Ponzi scheme; there are no corners to success. MMF gives you steady income while others do the dirty work for you. I made 45k today from equity today, tomorrow I might lose 20k from it or I might even make 120k; only God knows. On a final note, if you are not patient, kindly stick to MMF.

Check the post above for fixed income fund benefits. It's not too late to start now; most MMF rates are dropping now except for TrustBanc. FirstAlly dropped to 16.66% today; this is the first time seeing it happen.

mikeayus:
Thanks for the detailed explanation, my question was originally regarding the fixed income fund and not equity fund. Just wanted to know the difference between fixed income fund and regular MMF. Thankks

EquityM:
Check the post above for fixed income fund benefits. It's not too late to start now; most MMF rates are dropping now except for TrustBanc. FirstAlly dropped to 16.66% today; this is the first time seeing it happen.

I think what mikeayus is asking is this:

1. Is there a difference between Fixed income and Equity fund?

2. Is capital preservation guaranteed under Fixed Income as it is in MMF?

I answered the questions rightly. Equity is high risk, and fixed income funds are low risk. Capital is guaranteed on fixed-income funds, while equity does not have a fixed return, as it is deemed high risk; however, losing all your capital is not expected in an equity fund unless the fund managers are inefficient. @Beeron, can you enlighten him further?

Iamblessed88:
I think what mikeayus is asking is this:

1. Is there a difference between fixed income and Equity fund?

2. Is capital preservation guaranteed under Fixed Income as it is in MMF?

EquityM:
I answered the questions rightly. Equity is high risk, and fixed income funds are low risk. Capital is guaranteed on fixed-income funds, while equity does not have a fixed return, as it is deemed high risk; however, losing all your capital is not expected in an equity fund unless the fund managers are inefficient. @Beeron, can you enlighten him further?

Taking it a step further, what then is the difference between Fixed Income Funds and MMF? Why would i do fixed income versus MMF which always seem to have a higher yield?

Fixed income funds have multiple series of money channels that an investor will get. MMF does not have a higher yield than fixed income funds. I'm currently making more on my fixed income funds than MMF. What makes FI stand out is the peak period when the government pays out bonds and issues new bonds. During this period the NAV increases, and you might make 7.55% of your capital on that day. Now, we have 5-6 peak periods in a year. Additionally, dividends are paid twice a year, which is not your interest accrued, unlike MMF. Furthermore, if you add all these funds coming in, you might ditch the daily interest. FirstAlly has HYIS premium that has a bond in it, and the rate is always higher than MMF. However, both funds are good channels for growth. Nevertheless, FI still gets the nod in terms of income distribution. Check the attached picture for clarification on peak period. (31st of DEC 755 naira income)

Iamblessed88:
Taking it a step further, what then is the difference between fixed income funds and MMF? Why would i do fixed income versus MMF which always seem to have a higher yield?

EquityM:
Fixed income funds have multiple series of money channels that an investor will get. MMF does not have a higher yield than fixed income funds. I'm currently making more on my fixed income funds than MMF. What makes FI stand out is the peak period when the government pays out bonds and issues new bonds. During this period the NAV increases, and you might make 7.55% of your capital on that day. Now, we have 5-6 peak periods in a year. Additionally, dividends are paid twice a year, which is not your interest accrued, unlike MMF. Furthermore, if you add all these funds coming in, you might ditch the daily interest. FirstAlly has HYIS premium that has a bond in it, and the rate is always higher than MMF. However, both funds are good channels for growth. Nevertheless, FI still gets the nod in terms of income distribution.

Thanks for this. Why then is MMF more popular? Liquidity reasons i guess?

You are making me rethink having my money in MMF lol. That 7.55% would have given me over 10M

Of course, you can't just withdraw your money easily in FI. You even need to check the rate on that day to see if it favors you or not before liquidating. If you withdraw when the rate is low, you lose money. MMF is popular as you can liquidate your money at anytime and besides the fund managers are also using part of our money to invest in bonds and equities.

Iamblessed88:
Thanks for this. Why then is MMF more popular? Liquidity reasons i guess?

Of course, even AI is telling me to fund the FI more to counter sluggish days in equity. Peak periods make tons of money once you are in the system. That money, you can cash it out and buy whatever you need.

Iamblessed88:
Thanks for this. Why then is MMF more popular? Liquidity reasons i guess?

You are making me rethink having my money in MMF lol. That 7.55% would have given me over 10M

EquityM:
Of course, you can't just withdraw your money easily in FI. You even need to check the rate on that day to see if it favors you or not before liquidating. If you withdraw when the rate is low, you lose money. MMF is popular as you can liquidate your money at anytime and besides the fund managers are also using part of our money to invest in bonds and equities.

You’re on point

EquityM:
Of course, even AI is telling me to fund the FI more to counter sluggish days in equity. Peak periods make tons of money once you are in the system. That money, you can cash it out and buy whatever you need.

Interesting insight. However, what i would like to simulate is full year gains in FI versus full year gains in MMF. I think MMF might beat FI due to monthly compounding (stanbic)

One very good strategy is to designate a part of your portfolio as Risk capital. This is the one you dont care what happens to it so you can still sleep well even if invested in a risky asset.

Never designate your entire capital as Risk capital.

mikeayus:
Thanks for the detailed explanation, my question was originally regarding the fixed income fund and not equity fund. Just wanted to know the difference between fixed income fund and regular MMF. Thankks

The difference between fixed income and MMF is one grows wealth and the other preserve wealth.

Fixed income grows wealth and MMF preserve wealth. Just understand it from that angle.

Monthly compounding, yes. Peak periods and dividends from the funds beat the monthly compounding should you choose to reinvest the dividend.

Iamblessed88:
Interesting insight. However, what i would like to simulate is full year gains in FI versus full year gains in MMF. I think MMF might beat FI due to monthly compounding (stanbic)

You're on point. Investing heavily in equity has its drawbacks, but having fixed income and MMF as my backup does not cause me to lose sleep at night. Moreover, a riskier investment is for the long term; I don't need the money now.

Iamblessed88:
One very good strategy is to designate a part of your portfolio as risk capital. This is the one you dont care what happens to it so you can still sleep well even if invested in a risky asset.

Never designate your entire capital as Risk capital.

When I get to 50 then I can consider moving my funds to mmf but right now equity and ethical fund all the way. If I don't structure it this way I may not meet my investment target

EquityM:
You're on point. Investing heavily in equity has its drawbacks, but having fixed income and MMF as my backup does not cause me to lose sleep at night. Moreover, a riskier investment is for the long term; I don't need the money now.

Same here, 100 m is my target; I wanna try the CSOF. 100YTD yearly.

Arizona86:
When I get to 50 then I can consider moving my funds to mmf but right now equity and ethical fund all the way. If I don't structure it this way I may not meet my investment target

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I'm not sure about that. Other investors might be able to answer you.

quote author=Gratefulme post=138213781]Between afrinvestor 2.0 and bamboo, who has lesser commission/fee?[/quote]

Do we currently have ETF like they do with the US market in Nigeria?

Yes. Stanbic and Meristem have ETFs.

Niiade:
Do we currently have ETF like they do with the US market in Nigeria?