₦airaland Forum

Can you throw more light on caveats emptor..
Thanks alot

DigitalMallam:
I have descent investment with Crowdyvest, +ve testimonies from colleagues cum genuine personal investigation informed my decision. I've had them on my radar for a while though. I was convinced with practical proof before investing with them. I also have sizable stake with Agrorite which has higher ROI and invariably higher risk.
But more importantly, there's a caveats emptor attached to the post.

Also interested in the material. My email is ikharo.cynthia@gmail.com. thanks

aremso:
Pls ma you can mail me on arem.sam@gmail.com so I can send some materials to you for you to study as guide. I don't tell people stocks to buy except my households so I want u to do it yourself. Since my experience of 2008 market crashed, I have told myself that I can't make loss again in capital market and as such, I went extra mile to read about stock investment. Even my broker can't tell me stocks to buy and time to buy it. I only discuss with him occasionally to sample his mind on a stock after I have done my due diligence. Before I could buy diff stocks like 10 companies but now just max of 4 and am OK for my yr target and am thinking of reducing it to just 2. These are the result of self research and due diligence. Get prepared and become great like my mentor Warren buffet, many will keep complaining about APC PDP while guys are making millions legitimately. See you in the board room!

Thanks a lot.

freeman67:
Back then I wanted to invest both principal and interest but I was told in that branch that they don't do it. So I asked the marketer if it was possible I do it than way and he said yes. I did that like twice back then before I started concentrating on First Bank and Stanbic and there were successful..

To be more explicit I will use numbers..

Assuming I want to invest N100,000 for 364 day at 15%. Before charges are taken my interest is N15,000 So In my form or request/letter I will write to invest N115,000 instead of the N100,000 that I intend invest. What then happens is that instead of them to deduct N85,000 as the discount value, they will deduct N100,000 then at maturity you would be credited with the about N117250.

For the charges I actually had some loose change(not part of what I intended to invest) in my account then that it was taken from. But I believe if you don't want it that way, you can't ask them for the charges and factor it into your calculations.

Before I even asked, I studied the pattern of how the various banks I use deduct money from my account whenever I apply. In First Bank even if I am applying for an auction that is due to take place in 10 days time, once I apply and my application is treated/considered my money will be taken out of your reach. I will either get my whole money back if unsuccessful or my interest back if successful ( or nothing significant back in my account if I request for reinvestment of interest) after settlement. For Stanbic, I will be seeing my money till the auction time then said amount (face value) I intend to invest is deducted and all after the interest is refunded back to my account. For GT my money is left till auction is successful then the discount rate is deducted. GT does not deduct the whole investment sum first before returning my interest. They only take what's for them and leave mine there for me unlike other banks that will take all first before returning my own.

I hope this explains it better.

Good day house, please I need an explanation as to how this compound interest works on Tbills...

Suppose i have 100k in my account and I invest it @15% for 364 days, my interest upfront would be 15,000, which means I would be debitted 85k.. Supposing I decided to reinvest the accured interest, so I write 115k on the form, please how much would be my upfront left in my account and how much would be debitted?

OK.. I really appreciate your advise.. Besides am a lady..

Ikmontana1:
I think its better u liquidate bro, then re-invest.
If u liquidate early now, u lose ur upfront interest, worst case is dat u lose little part of ur capital, but u will gain ur full capital n more interest back if u re-invest at a larger interest rate.
Liquidate ur investment den mk inquiries abt d available tenors n rates, do ur calculations to choose d best rate n tenor.

Thanks a lot Sir, I would wait till the end of today to see if it has been rectified before make any decision

freeman67:
Human error do happen sometimes. The difficulty there is knowing if it was actually an honest mistake or mischief from a dishonest staff. That I can't say. For the liquidation, the one time I tried it in a situation similar but not same as yours I lost a little from my capital. I related it in one of my post above. So if you don't mind that, you can go with that.

However, I will say that since she asked you to give her till tomorrow to sort out things, tomorrow is already here and I assume since you did not indicate that you asked her to liquidate before leaving she would try and rectify it. You can check her today to see if she has rectified it first before going for the other option if she did not.

Please I need advise.

silentone:
Thanks a lot.. I got debitted and I found that I was given an interest of 11.06% as against the 14.15. I went to complain, and the account officer said they had technical issues that the rate I was given was for 275 days.. So I said why didn't you call me?? Instead they now invested my funds at 11.06% for 275 days.. I told the lady straight up that I can't go with the rate.. She then told me they would try to rectify it but I have the option of liquidating or allow her try to rectify it.. Am like so what happens to the safe keeping fee and transaction fee that was debited and she couldn't answer but she begged to give her till tomorrow to try sort things out.. So confused right now.. What can I do please?? So I liquidate??

Thanks a lot.. I got debitted and I found that I was given an interest of 11.06% as against the 14.15. I went to complain, and the account officer said they had technical issues that the rate I was given was for 275 days.. So I said why didn't you call me?? Instead they now invested my funds at 11.06% for 275 days.. I told the lady straight up that I can't go with the rate.. She then told me they would try to rectify it but I have the option of liquidating or allow her try to rectify it.. Am like so what happens to the safe keeping fee and transaction fee that was debited and she couldn't answer but she begged to give her till tomorrow to try sort things out.. So confused right now.. What can I do please?? So I liquidate??

freeman67:
170 days from today Tuesday 15/01/2018 will be Thursday 04/07/2018. Please note that tomorrow the tenure you got today as 170days if still available will become 169days.

please what is SFS and FIF?

ajeleomo:
This is not as you see it, I had spoken with a representative of Afrinvest and their interest displayed is not same as how MMF interest are being calculated. You need to contact them for a better understanding as your interest is based on the difference between your entry and closing price.

I have just receieved a breakdown of interest from SFS FIF as shown below for the month of december 2018

14.89%
14.89%
14.91%
15.01%
15.00%
15.08%
14.31%
14.31%
14.30%
14.30%
15.18%
15.19%
15.21%
14.51%
15.25%
15.25%
15.26%
15.24%
15.31%
15.32%
15.30%
15.30%
15.29%
15.34%
15.34%
15.34%
15.34%
15.36%
15.36%
15.36%
15.36%

[color=#000099][/color][quote][please what is SFS and FIF?? ][quote author=ajeleomo post=74441516]This is not as you see it, I had spoken with a representative of Afrinvest and their interest displayed is not same as how MMF interest are being calculated. You need to contact them for a better understanding as your interest is based on the difference between your entry and closing price.

I have just receieved a breakdown of interest from SFS FIF as shown below for the month of december 2018

14.89%
14.89%
14.91%
15.01%
15.00%
15.08%
14.31%
14.31%
14.30%
14.30%
15.18%
15.19%
15.21%
14.51%
15.25%
15.25%
15.26%
15.24%
15.31%
15.32%
15.30%
15.30%
15.29%
15.34%
15.34%
15.34%
15.34%
15.36%
15.36%
15.36%
15.36%
[Please what is SFS and FIF]

[color=#006600][/color][quote author=silentone post=74787743]Good day house, please I need your advise. I just invested in my first TB at stanbic and I was given the following rates
Primary market
91 - 10.89
182 - 13.10
364 - 14.5

Secondary market

107 - 12.75 to mature on 2nd may, 2019
170 - 14.15. Mature on 17 Oct 2019
359 - 14.25. Mature 9 Jan 2020

I choose 170 days on secondary market... I was told stanbic don't reinvest interest so I can't do so.. Beside when I got back to the office and calculated 170day, it is suppose to mature before 17th Oct, 2019..

Please I want to gurus in the house to help me calculate the maturity date for 170 days. Also did I choose a good rate based on the tenor?? Lastly, is it true stanbic don't reinvest interest accured...

I will appreciate helpful contributions and advice.. God bless[please I would appreciate a response.. Thanks]

Good day house, please I need your advise. I just invested in my first TB at stanbic and I was given the following rates
Primary market
91 - 10.89
182 - 13.10
364 - 14.5

Secondary market

107 - 12.75 to mature on 2nd may, 2019
170 - 14.15. Mature on 17 Oct 2019
359 - 14.25. Mature 9 Jan 2020

I choose 170 days on secondary market... I was told stanbic don't reinvest interest so I can't do so.. Beside when I got back to the office and calculated 170day, it is suppose to mature before 17th Oct, 2019..

Please I want to gurus in the house to help me calculate the maturity date for 170 days. Also did I choose a good rate based on the tenor?? Lastly, is it true stanbic don't reinvest interest accured...

I will appreciate helpful contributions and advice.. God bless

Good evening, please I really need to understand this reinvesting interest on tbills. If Invest have 1 mill at say 14% for 365 days what would be my interest. If I decide to reivest the interest when am filling the form what would be my take home at the end of the tenor?

What kind of account can I open in stanbic bank to operate TBills. My prospective account officer is asking me to open a business account but am not convinced.

[quote author=katamo post=72828123]The answer is that it depends.

What is your time horizon for this investment? In order words, will you need to access the money sooner or later? If you want flexibility to access your cash, then money market is the way to go as these are more liquid and therefore easier to cash out in the event you want to do that.

If accessing the cash quickly is not important, then we are really looking at how the returns compare against each other. From a rate of return perspective, you will need to compare the money market rate (which is an annualized number) to the true yield on the T-bills - if not you are mixing oranges and mangoes in the comparison. The true yield for the tenors you have indicated are as follows:

91 - 11.1%
182 - 14.5%
364 - 16.3%

You also need to consider the fact that interest on T-bills is not taxable while earnings on momey market funds are taxable at 10% i believe. So on an after-tax basis, the money market return of 11.54% is 10.4%.

In short, if liquidity is more important than rate of return, then go with money market, if not, TBill is the way to go!


[Thanks alot]

[quote author=katamo post=72828123]The answer is that it depends.

What is your time horizon for this investment? In order words, will you need to access the money sooner or later? If you want flexibility to access your cash, then money market is the way to go as these are more liquid and therefore easier to cash out in the event you want to do that.

If accessing the cash quickly is not important, then we are really looking at how the returns compare against each other. From a rate of return perspective, you will need to compare the money market rate (which is an annualized number) to the true yield on the T-bills - if not you are mixing oranges and mangoes in the comparison. The true yield for the tenors you have indicated are as follows:

91 - 11.1%
182 - 14.5%
364 - 16.3%

You also need to consider the fact that interest on T-bills is not taxable while earnings on momey market funds are taxable at 10% i believe. So on an after-tax basis, the money market return of 11.54% is 10.4%.

In short, if liquidity is more important than rate of return, then go with money market, if not, TBill is the way to

Please house, I need your advice. I went to stanbic today to enquire about TBills and Money Market cause I wanted to invest 500k. After telling me the rates, the account officer advised me to opt in for money market. Saying it would be a smart choice as to TBills.
The rate for TB at primary market was:
91 days-10.75
182- 13.47
365-14.0
While Money market is 11.54%
Please, what option do I opt in for as am a newbie in this.

Please when is the next bidding and what is the difference between secondary and primary market?