₦airaland Forum

Quick question,

When investing with Stanbic Primary market, is it better to use Face Value or Discounted Value?

Or do they only process the application if you tick 'Face Value' on the form?

Aquilapriscilla:
I am new to this. Please Which bank is good for secondary market giving that primary auction has passed?

I use stanbic

Over 2 years now no issues and good secondary rate

Hi everyone, I'm a newbie to TB and mutual funds . please does anyone use I-invest App here for their investment ?
Is it reliable ? I will appreciate any invite

FYI

I-invest platform is great and genuine. It is reliable also.

There are other platforms like InvestNow, Investment One, Afrinvestor, BluNest, and Meritrade by Meristem.

Jamieb:
Hi everyone, I'm a newbie to TB and mutual funds . please does anyone use I-invest App here for their investment ?
Is it reliable ? I will appreciate any invite

House,
I have about 5m naira that I will need to use for investment in late 2027. This is more than 1 year time, and I don't want to touch it and I want to avoid traditional bank with thier ridiculous interest rate.

Can someone suggest where I can invest this that will not be risky and will be easily withdrawable as well.

Money market on cowrywise comes to mind. I just want to know if there are better options for me.

Thanks

First ally asset management is reliable and gives the best percentage for money market mutual funds.
You can redeem your funds anytime and no holding period

DataAnalyst2022:
House,
I have about 5m naira that I will need to use for investment in late 2027. This is more than 1 year time, and I don't want to touch it and I want to avoid traditional bank with thier ridiculous interest rate.

Can someone suggest where I can invest this that will not be risky and will be easily withdrawable as well.

Money market on cowrywise comes to mind. I just want to know if there are better options for me.

Thanks

DataAnalyst2022:
House,
I have about 5m naira that I will need to use for investment in late 2027. This is more than 1 year time, and I don't want to touch it and I want to avoid traditional bank with thier ridiculous interest rate.

Can someone suggest where I can invest this that will not be risky and will be easily withdrawable as well.

Money market on cowrywise comes to mind. I just want to know if there are better options for me.

Thanks

Try Renmoney or FairMoney. You can collect your interest upfront.

Renmoney have better rate though.

digitalinvestor:
I-invest platform is great and genuine. It is reliable also.

There are other platforms like InvestNow, Investment One, Afrinvestor, BluNest, and Meritrade by Meristem.

Thank you . On it already. Just waiting for them to approve some information so I can find. But it seems they only pay TB only after maturation unlike some that pay upfront

DataAnalyst2022:
House,
I have about 5m naira that I will need to use for investment in late 2027. This is more than 1 year time, and I don't want to touch it and I want to avoid traditional bank with thier ridiculous interest rate.

Can someone suggest where I can invest this that will not be risky and will be easily withdrawable as well.

Money market on cowrywise comes to mind. I just want to know if there are better options for me.

Thanks

I'll advice you get a renmoney app and you can lock you money up to a year or less depending which you'll like to go for . You can also either collect your interest now or upon maturity depend on which is ok for you.

astuto:
Why is Blunest no longer showing Treasury Bills?

Even the 332 day has disappeared.

What's happening?

Go for primary auction if you can afford it. What you see there is from secondary market and you won't get upfront interest payment.

Over 4trillion subscription for the 364day tenure. Slight increase in yield compared y the previous auction

astuto:
See this email I just got from Stanbic:

Further to our previous email, we can confirm that the funds have been applied to your wallet appropriately.
Please be advised that you can place a bid for treasury bill on the Blunest platform and the prevailing bid is also stated on the platform.

You can invest as low as 500,000, however, accrued interest will be paid at the point of maturity and not upfront.

Kindly see below steps to place a bid

Kindly login via the Blunest link https://blunest.stanbicibtcassetmanagement.com/invest-now/
Select Wallet at the right corner of the dashboard.
Click on "Explore" beneath Wallet.
Proceed to buy into Treasury Bill (Minimum of 500,000).
We thank you for your patronage.



Warm Regards
Jesutofunmi Salaam



My question is, are they no longer paying interest upfront in Stanbic treasury bills?
That would not be good.

They cannot pay upfront interest because they are reselling to you.

Don't pile up all funds in treasurybill, you are one devaluation away from loosing chunks of your money. I'm talking from experience, i piled it all in tbs and lost more than 100%, still affecting me till date, i have to start all over again. You can do 30% TB,70% foreign currencies investment.

Ugmama:
Save up in foreign currency or pile up money in treasury bills long term? Which would you go for ?

August's FGN Bond Auction. A little short notice and quite a large offering. Will be interesting to see the rate that clears the N1.1trn offering.

RayRay06677:
Thanks a million

DataAnalyst2022:
House,
I have about 5m naira that I will need to use for investment in late 2027. This is more than 1 year time, and I don't want to touch it and I want to avoid traditional bank with thier ridiculous interest rate.

Can someone suggest where I can invest this that will not be risky and will be easily withdrawable as well.

Money market on cowrywise comes to mind. I just want to know if there are better options for me.

Thanks

Putting it a money market fund will be better, with an interest rate of 17% will yield ₦2,300 per day which you can compound and reinvest.
Note: Just a suggestion, not a professional financial advice.

OMO bills now open to retail investors. That’s a game changer. Start bidding via your banks.
Higher interest rate compared to treasury bills.

MadmaxX489:
OMO bills now open to retail investors. That’s a game changer. Start bidding via your banks.
Higher interest rate compared to treasury bills.

Yes ooo. That year we flex am ooo.

Always have a diversified portfolio. Do not pile up in only one asset class

Ugmama:
Save up in foreign currency or pile up money in treasury bills long term? Which would you go for ?

Ticking or selecting Face Value is usually easier to understand because you know the exact amount you are buying plus the premium or less the discount i.e. above or below par for bonds. In the case of treasury bills Face Value is also easier because you will only be debited the discounted value plus transaction fees. In both cases, you receive the Face Value on maturity.

That said, selecting discounted value will will still process the transaction but you should be aware that this is the amount that would be debited and the corresponding face value will be higher at maturity for TBs. e.g. if you want to invest no more than N10m in TBs, selecting Face Value will result in less that N10m being debited from you account (discounted value) e.g N8.5m depending on the tenor. However, selecting discounted value will result in N10m plus transaction fees being deducted from you account but you receive a face value e.g. of N11.5m paid at maturity. N.B: the discount on TBs is subject to 10% WHT

astuto:
Quick question,

When investing with Stanbic Primary market, is it better to use Face Value or Discounted Value?

Or do they only process the application if you tick 'Face Value' on the form?

Foodempire:
Don't pile up all funds in treasurybill, you are one devaluation away from loosing chunks of your money. I'm talking from experience, i piled it all in tbs and lost more than 100%, still affecting me till date, i have to start all over again. You can do 30% TB,70% foreign currencies investment.

Please, how can we do foreign currency investment?

skydiver01:
Ticking or selecting Face Value is usually easier to understand because you know the exact amount you are buying plus the premium or less the discount i.e. above or below par for bonds. In the case of treasury bills Face Value is also easier because you will only be debited the discounted value plus transaction fees. In both cases, you receive the Face Value on maturity.

That said, selecting discounted value will will still process the transaction but you should be aware that this is the amount that would be debited and the corresponding face value will be higher at maturity for TBs. e.g. if you want to invest no more than N10m in TBs, selecting Face Value will result in less that N10m being debited from you account (discounted value) e.g N8.5m depending on the tenor. However, selecting discounted value will result in N10m plus transaction fees being deducted from you account but you receive a face value e.g. of N11.5m paid at maturity. N.B: the discount on TBs is subject to 10% WHT

And they would be using the 10% WHT to terrorize the masses instead for development .

They are really making money, imagine

That means if the Tb interest 100 billion them the WHT accrued will be whopping N10 billion just like that

Thanks for your submission. But I want to do this just for 1 year before using it to boost a business.

Do you think compounding effect in MMF will have any significant effect compare to 20% interest rate of fixed deposit in the same 1 year?

Gboss247:
Putting it a money market fund will be better, with an interest rate of 17% will yield ₦2,300 per day which you can compound and reinvest.
Note: Just a suggestion, not a professional financial advice.

Foodempire:
Don't pile up all funds in treasurybill, you are one devaluation away from loosing chunks of your money. I'm talking from experience, i piled it all in tbs and lost more than 100%, still affecting me till date, i have to start all over again. You can do 30% TB,70% foreign currencies investment.

Good advice but for the records you cannot literally lose 100% in TBs except if you lost principal and coupon. The value may decrease but definitely not by 100%.

What you mean could be that you would have made more than 100% elsewhere. The only time you lose 100% of your money market investment is if the issuer refuses to pay coupons and principals. In other investment markets, however, it's different.

Ok

Good morning all, how do I find fgn savings bonds that are being traded like stocks, I have searched everywhere.

Like old fgn savings 2025 bonds and their yeilds.

MadmaxX489:
OMO bills now open to retail investors. That’s a game changer. Start bidding via your banks.
Higher interest rate compared to treasury bills.

Will rates still be higher than TB?

DataAnalyst2022:
Thanks for your submission. But I want to do this just for 1 year before using it to boost a business.

Do you think compounding effect in MMF will have any significant effect compare to 20% interest rate of fixed deposit in the same 1 year?

Both would yield almost same result:

At 20%, thats about 6m at maturity on a 5m Investment, while compounding same with a current interest rate of 17.5(Approx) over 12months amounts to about 5.9+ assuming the rate remains steadfast and no shortfalls.

You're Welcome

Sunbellar:
Please, how can we do foreign currency investment?

Contact a financial company like stanbic or first assest management, they will put you through. As a serious investor living in Nigeria, you just have to hedge your funds with dollar backed investments. The problem with treasurybill/bonds is that you could be tied down with the so called seemingly juicy rate until just one devaluation swallowed your entire profits and you wouldn't have enough time to act because it can't be terminated promptly like money market.

As I previously mentioned, i locked all my funds in government securities, believing that I wouldn't have to work again in my life or worry about children school fee, I set up bonds to see my children through universities education but as it stand now,i have to double my hussle.I never believe that just a few year inflation can render the naira this useless. I'm the type that write less but whenever I see folks that choose to lock it all in nigeria securities my church mind would be triggered to warn them about Nigeria inflation that could slice your worth by 100% in a jiffy. We are just looking at the millions in our account, what can you really buy with them ?should be our concern, what is our purchasing power? I wanted to buy a duplex in 2024 for 70m but I tarry ,same duplex is now 140m.

MadmaxX489:
OMO bills now open to retail investors. That’s a game changer. Start bidding via your banks.
Higher interest rate compared to treasury bills.

How do you purchase OMO bill please? I asked two of my banks and they both said it is explicitly for foreign institutions and not retail.

Sunbellar:
Please, how can we do foreign currency investment?

Well, buy usdt & keep in a safe wallet if you Just want to save your money in foreign currency and retain its value regardless of Nigeria Inflation situation.
I didn't say Bitcoin o
Alternatively u can do the local way, get a good Home safe, buy $$ cash and store

Foodempire:
Contact a financial company like stanbic or first assest management, they will put you through. As a serious investor living in Nigeria, you just have to hedge your funds with dollar backed investments. The problem with treasurybill/bonds is that you could be tied down with the so called seemingly juicy rate until just one devaluation swallowed your entire profits and you wouldn't have enough time to act because it can't be terminated promptly like money market.

As I previously mentioned, i locked all my funds in government securities, believing that I wouldn't have to work again in my life or worry about children school fee, I set up bonds to see my children through universities education but as it stand now,i have to double my hussle.I never believe that just a few year inflation can render the naira this useless. I'm the type that write less but whenever I see folks that choose to lock it all in nigeria securities my church mind would be triggered to warn them about Nigeria inflation that could slice your worth by 100% in a jiffy. We are just looking at the millions in our account, what can you really buy with them ?should be our concern, what is our purchasing power? I wanted to buy a duplex in 2024 for 70m but I tarry ,same duplex is now 140m.

I do not think you are painting a fair picture. Government securities over the last 10 years have paid 12-22% on average yearly. While it hasn’t exactly beat inflation, it has worked better than keeping your money idle. Saving in usd has its disadvantages too which include the fact that your local currency can also become stronger. A example is those who bought dollar at 1800 Naira believing it was going to 3,000 Naira. Dollar is currently 1364 and dropping today so what say you? Dollar backed investments can also ruin you. People loose on the us stock exchange daily. People take large financial hits on the foreign market that they never recover from too.

If you got substantial funds in treasury bills, you wouldn’t say you lost 100% of your value, that is an exaggeration. I have saved in treasury bills in the last 13 years and while i agree that it doesn’t always beat inflation, it also doesn’t loose 100% value that fast. You live in Naira, you earn in Naira, you spend in Naira. There will always be inflation, you just try to beat it.

Every investment has its perks and disadvantages. People have real estate they have been trying to sell for years with all the attendant issues of bad infrastructure and bad tenants and poor liquidity. But to each his own. Let’s create a balanced analysis.

People who have 500 million in treasury bills currently make 75 million a year which is more than enough to take care of even a large family. The issue with treasury bills is that you need to put in a large Amount of money to live off its dividends.