Where to Invest Money in Nigeria – Top Online Savings and Investment Opportunities With Highest Interest Rates on Fixed Deposits Account than Stock Market.
It’s Sunday afternoon and I decided to check the average return on Nigeria stock market in the last 6 months so I could focus and buy more shares in companies that delivered more than 50% this year. In my portfolio, I had few stocks on the green territory and a larger number of equities traded on the negative territory because of the overall market sentiments. The NSE index is down, back to the red region, no thanks to the anticipated US rate hike that led to sell-offs in emerging market currencies and equities. This coupled with rising tension and political risk had adversely affected foreign portfolio inflows to the equities market.
What is going to happen in the next half of the year (2018), you may ask? I must be candid, the next 6 months isn’t going to be smooth for stocks. The upcoming election is one factor you can’t ignore right now, the heat is becoming hotter and investors, from past experiences, tends to sell their equities ahead of general election, so expect NSE index to be broadly affected by this sentiments.
Another factor is the second anticipated US fed rate hike, carry trade traders tend to favour currencies with a rising interest rate to a stable currency which is the reason emerging market currencies are at risk of sell-offs. The US bond yield is at an all-time high right now and such return is no doubt “a sugar on fixed income investors’ tongue“. The NSE index might also be impacted as a major percentage of capital flows to the NSE comes from foreign portfolio holders.
Another key factor is a general sentiment, we think investors aren’t seeing any positive market or fundamental news that will drive the market again, Oil price which is suppose to be a key driver is up in the last 6 months but have had little or no impact on the NSE market. The correlation, this year, is now negative; as Oil prices reach a new high, investors aren’t factoring such positive indicator into the NSE all share market as witnessed in 2017. I feel such news has already been priced in.
What happens to my portfolio? Well, that depends on the sector you had invested in. While the next 6 months might not be as smooth as you would expect, there are still stocks to buy and enjoy average return above the NSE index.
I have already shared a detailed guide on how to pick stocks in a bearish market, a simple strategy that uncovered my best performers right now. Click here to learn more, maybe it will help you reshuffle your portfolio to select stocks that would do well this year.
For some of us who are still protective in this volatile market and wouldn’t want the bearish trend to wipe out a significant portion of our investment portfolio, I will be sharing the 3 alternative low-risk fixed deposit options that had outperformed the Nigerian stock market index so far. These investment options do not necessarily demand a special skill, financial prowess or consultation with a stockbroker, we are currently exploring them to, not only protect our investment but at least hedge against equity market fall.
As a smart investor, the stock market shouldn’t be the only place to make money, fixed deposit and insurance options are where to invest money in Nigeria
PiggyBank is an automated savings app that lets you save a specified amount (with a “Quick Save” feature for saving at your pace), for a stated number of days after which the fund will be available for withdrawal and if you opt to cash out before expiration, a 5% charge will be deducted from the amount saved.
But here is the catch about PiggyBank that made me recommend the app as one of the best places to save and earn higher interest above the Nigerian stock market; PiggyBank offers a SafeLock feature, an innovative disciplined fixed deposit opportunity that lets you lock away cash for a specified period while your interest is paid upfront.
For instance, if you wish to fix N1,000,000 for a year, you will earn 12.4% upfront, which is N124,000 payable into your PiggyFlex account. PiggyFlex account holds all the interest earned on your fixed deposit, and it’s available for withdrawal.
You can give PiggyBank a try as the six (6) months interest rate estimated at 6% far exceeds the NSE index performance in the same period. In the midst of stock market volatility, you can explore this guaranteed interest income opportunity ahead of the general election fever.
Like I always say, I don’t practise what I don’t preach, Click here to read my success story on PiggyBank Website.
I have already reviewed the other two savings plan you can explore if the stock market seems risky to you.
To learn more about the other two fixed deposit investment plan, click here.
Please note that the NSE market return we benchmarked these fixed income opportunities on, is the first half of 2018.