Money Market Fund is like a big safe piggy bank managed by professionals. 1. You put your small money together with thousands of people. You: 10k, another person: 500k, together it becomes billions. 2. The professional (Fund Manager) uses that big money to buy ONLY very safe things: - Treasury BillsRead more
Money Market Fund is like a big safe piggy bank managed by professionals.
1. You put your small money together with thousands of people.
You: 10k, another person: 500k, together it becomes billions.
2. The professional (Fund Manager) uses that big money to buy ONLY very safe things:
– Treasury Bills (FGN)
– Fixed Deposits in big banks
– Commercial Papers from big companies like Dangote, MTN, BUA
He does NOT buy risky shares.
3. Those safe things pay interest every day.
The manager collects that interest daily and adds it to your balance.
Example: If the fund is paying 18% per year and you put 100,000 Naira:
You will see your money grow by about 49 naira every day. You can check it in the app every morning.
4. Why people like it:
– *Safe:* Almost as safe as keeping money in the bank.
– *You can withdraw anytime:* Usually within 24 hours. No penalty.
– *You can start small:* From 1,000 naira.
– *Better than savings account:* Savings account gives you 2-4% per year, Money Market gives 15-22% per year.
Simple way to remember:
Savings account = Money sleeps.
Money Market Fund = Money works safely every day while you can still take it anytime you want
Yes, A Cooperative Society in Nigeria can absolutely invest in Treasury Bills, Bonds, and Shares* to grow members' savings. In fact, it's one of the smartest things a good cooperative should do. But there are rules: 1. YES, it's legal. The Nigerian Cooperative Societies Act allows cooperatives to inRead more
Yes, A Cooperative Society in Nigeria can absolutely invest in Treasury Bills, Bonds, and Shares* to grow members’ savings. In fact, it’s one of the smartest things a good cooperative should do.
But there are rules:
1. YES, it’s legal.
The Nigerian Cooperative Societies Act allows cooperatives to invest their funds to get profit for members, as long as it’s approved by members and the management committee.
2. What you can invest in:
– Treasury Bills (T-Bills): Very safe, short-term. Government borrows from you for 91, 182, or 364 days and pays you interest. Best for keeping money safe.
– FGN Bonds: Also very safe, long-term (2 to 30 years). Government pays you interest every 6 months. Good for long-term growth.
– Shares/Stocks (on NGX): Higher risk, higher return. You buy part of a company like Dangote Cement, MTN, GTCO. You make money if the share price goes up and from dividends.
3. Conditions before you invest:*
– Members must agree: It must be in your cooperative’s bye-laws and approved in a general meeting. You can’t just use members’ savings without permission.
– Don’t risk all savings: Cooperatives are supposed to be low-risk. Most good cooperatives use the 60/40 rule: 60% for loans to members, 40% for safe investments like T-Bills/Bonds.
– Use a proper account: The cooperative must have its own CSCS account (for shares) and bank account for T-Bills/Bonds. Not in the president’s personal name.
– Get professional help: Use a licensed stockbroker or your bank for T-Bills and Bonds.
Beginner advice:
If your cooperative is just starting, start with “Treasury Bills” first because your capital (original money) is 100% safe and guaranteed by the Federal
Let me breaks it down in a way even a beginner will understand. Think of buying a stock like buying a shop. You want a shop that makes money, doesn't owe too much, and is not too expensive. Here are 4 easy checks: 1. Does it make real money? Look at [EPS]. It means "profit per share". If EPS was 1 NRead more
Let me breaks it down in a way even a beginner will understand.
Think of buying a stock like buying a shop. You want a shop that makes money, doesn’t owe too much, and is not too expensive.
Here are 4 easy checks:
1. Does it make real money?
Look at [EPS]. It means “profit per share”. If EPS was 1 Naira last year and 2 Naira this year, the company is growing. If it’s going down, avoid it.
2. Does it borrow too much?
Look at [Debt]. If a company borrows 10 million but only owns 2 million, it’s in trouble. You want low debt. Check its report – does it owe more than it owns?
3. Is the price too high?
Look at [P/E Ratio].
`P/E = Price of one share / Profit of one share’.
If you pay 100 naira for a share that only makes 2 naira profit, P/E is 50 (very expensive). If P/E is 5 to 10, it’s usually cheaper and better.
4. Is it good at using money?
Look at [ROE].
`ROE = Profit / Owner’s Money’.
It tells you how good they are at turning money into more money. Above 15% every year is excellent.
*Beginner’s formula:*
Good Revenue (sales are increasing) + Good Profit (EPS is increasing) + Low Debt + Not Expensive Price (low P/E) = Strong Company.
In the NGX (Nigerian Exchange), [MRF] stands for Missed Regulatory Filing. Here is what it means in simple way that you, I and a beginner will understand. Every company listed on the NGX is required by law to publish its financial results every quarter (every 3 months) and its full-year results. TheRead more
In the NGX (Nigerian Exchange), [MRF] stands for Missed Regulatory Filing.
Here is what it means in simple way that you, I and a beginner will understand.
Every company listed on the NGX is required by law to publish its financial results every quarter (every 3 months) and its full-year results. They have to do it within 30 days after that period ends.
If a company fails to file that report on time, the NGX puts an [MRF] tag next to its name on the official stock price list.
So if you see something like `UNITYBNK [MRF]`, it just means Unity Bank has missed its regulatory
How do Money Market Funds work?
Money Market Fund is like a big safe piggy bank managed by professionals. 1. You put your small money together with thousands of people. You: 10k, another person: 500k, together it becomes billions. 2. The professional (Fund Manager) uses that big money to buy ONLY very safe things: - Treasury BillsRead more
Money Market Fund is like a big safe piggy bank managed by professionals.
1. You put your small money together with thousands of people.
You: 10k, another person: 500k, together it becomes billions.
2. The professional (Fund Manager) uses that big money to buy ONLY very safe things:
– Treasury Bills (FGN)
– Fixed Deposits in big banks
– Commercial Papers from big companies like Dangote, MTN, BUA
He does NOT buy risky shares.
3. Those safe things pay interest every day.
The manager collects that interest daily and adds it to your balance.
Example: If the fund is paying 18% per year and you put 100,000 Naira:
You will see your money grow by about 49 naira every day. You can check it in the app every morning.
4. Why people like it:
– *Safe:* Almost as safe as keeping money in the bank.
– *You can withdraw anytime:* Usually within 24 hours. No penalty.
– *You can start small:* From 1,000 naira.
– *Better than savings account:* Savings account gives you 2-4% per year, Money Market gives 15-22% per year.
Simple way to remember:
See lessSavings account = Money sleeps.
Money Market Fund = Money works safely every day while you can still take it anytime you want
Can a Cooperative Society in Nigeria Invest in Treasury Bills, Bonds, and Shares to Grow Members' Savings?
Yes, A Cooperative Society in Nigeria can absolutely invest in Treasury Bills, Bonds, and Shares* to grow members' savings. In fact, it's one of the smartest things a good cooperative should do. But there are rules: 1. YES, it's legal. The Nigerian Cooperative Societies Act allows cooperatives to inRead more
Yes, A Cooperative Society in Nigeria can absolutely invest in Treasury Bills, Bonds, and Shares* to grow members’ savings. In fact, it’s one of the smartest things a good cooperative should do.
But there are rules:
1. YES, it’s legal.
The Nigerian Cooperative Societies Act allows cooperatives to invest their funds to get profit for members, as long as it’s approved by members and the management committee.
2. What you can invest in:
– Treasury Bills (T-Bills): Very safe, short-term. Government borrows from you for 91, 182, or 364 days and pays you interest. Best for keeping money safe.
– FGN Bonds: Also very safe, long-term (2 to 30 years). Government pays you interest every 6 months. Good for long-term growth.
– Shares/Stocks (on NGX): Higher risk, higher return. You buy part of a company like Dangote Cement, MTN, GTCO. You make money if the share price goes up and from dividends.
3. Conditions before you invest:*
– Members must agree: It must be in your cooperative’s bye-laws and approved in a general meeting. You can’t just use members’ savings without permission.
– Don’t risk all savings: Cooperatives are supposed to be low-risk. Most good cooperatives use the 60/40 rule: 60% for loans to members, 40% for safe investments like T-Bills/Bonds.
– Use a proper account: The cooperative must have its own CSCS account (for shares) and bank account for T-Bills/Bonds. Not in the president’s personal name.
– Get professional help: Use a licensed stockbroker or your bank for T-Bills and Bonds.
Beginner advice:
See lessIf your cooperative is just starting, start with “Treasury Bills” first because your capital (original money) is 100% safe and guaranteed by the Federal
How Can I Tell if a Company Is Financially Strong Before Buying Its Stock?
Let me breaks it down in a way even a beginner will understand. Think of buying a stock like buying a shop. You want a shop that makes money, doesn't owe too much, and is not too expensive. Here are 4 easy checks: 1. Does it make real money? Look at [EPS]. It means "profit per share". If EPS was 1 NRead more
Let me breaks it down in a way even a beginner will understand.
Think of buying a stock like buying a shop. You want a shop that makes money, doesn’t owe too much, and is not too expensive.
Here are 4 easy checks:
1. Does it make real money?
Look at [EPS]. It means “profit per share”. If EPS was 1 Naira last year and 2 Naira this year, the company is growing. If it’s going down, avoid it.
2. Does it borrow too much?
Look at [Debt]. If a company borrows 10 million but only owns 2 million, it’s in trouble. You want low debt. Check its report – does it owe more than it owns?
3. Is the price too high?
Look at [P/E Ratio].
`P/E = Price of one share / Profit of one share’.
If you pay 100 naira for a share that only makes 2 naira profit, P/E is 50 (very expensive). If P/E is 5 to 10, it’s usually cheaper and better.
4. Is it good at using money?
Look at [ROE].
`ROE = Profit / Owner’s Money’.
It tells you how good they are at turning money into more money. Above 15% every year is excellent.
*Beginner’s formula:*
See lessGood Revenue (sales are increasing) + Good Profit (EPS is increasing) + Low Debt + Not Expensive Price (low P/E) = Strong Company.
What is the Meaning of MRF on NGX?
In the NGX (Nigerian Exchange), [MRF] stands for Missed Regulatory Filing. Here is what it means in simple way that you, I and a beginner will understand. Every company listed on the NGX is required by law to publish its financial results every quarter (every 3 months) and its full-year results. TheRead more
In the NGX (Nigerian Exchange), [MRF] stands for Missed Regulatory Filing.
Here is what it means in simple way that you, I and a beginner will understand.
Every company listed on the NGX is required by law to publish its financial results every quarter (every 3 months) and its full-year results. They have to do it within 30 days after that period ends.
If a company fails to file that report on time, the NGX puts an [MRF] tag next to its name on the official stock price list.
So if you see something like `UNITYBNK [MRF]`, it just means Unity Bank has missed its regulatory
See less