The Nigerian Investor
Nigerians know how to invest, just apparently in the wrong products. The rate at which individuals recently flocked (and some say are still flocking) to various ponzi schemes show that the average Nigerian wants a return on any idle cash they have, but it seems Nigerians are not properly educated on the available options and the risks attached to each. When does a return on investment become too good to be true. Do Nigerians know? Why does it appear that more Nigerians play the lotto machines, than invest in financial instruments.
But what are the other options. Equities? Mutual Funds? Money Market Funds? Bonds? Treasury Bills? What are these? How accessible are they?
Why does it appear that more Nigerians play the lotto machines, than invest in financial instruments.
The Nigerian investor is still smarting over the stock market crash of several years ago, many people got their fingers burnt. The current rate of inflation is not helping matters, many people wonder what the point of keeping cash in an interest bearing account is, if it will still buy less in a year’s time than it can now. The problem is… then what do you do with your idle cash? It’s meant to be working for you after all.
If there’s no business venture you want to invest it in, the best option currently is still to invest in one of the (legal) financial instruments. Equities were very popular at a point, but many individuals simply were not sufficiently educated about the way the capital market works, and lost significant capital in the process. The market is still working to get over this. We believe that the right mutual funds, properly marketed, and backed by the right technology can help in this regard. It’s not a one stop solution, but a step in the right direction. Let the investor worry less about annual reports and more about the return they’re expecting.
We believe that the right mutual funds, properly marketed, and backed by the right technology can help in this regard.
With the right level of investor education and the right technology, we can begin to turn the capital market around. Let’s start the process.