FG bonds are safe and returns are guaranteed, but as an investor, it is imperative to diversify. FG bonds can only be withdrawn at maturity, which could take some years, but there are other aspects of the stock market you could spread your 50 million into. You can invest some of it on FG bond, whileRead more
FG bonds are safe and returns are guaranteed, but as an investor, it is imperative to diversify.
FG bonds can only be withdrawn at maturity, which could take some years, but there are other aspects of the stock market you could spread your 50 million into.
You can invest some of it on FG bond, while other part of the money could be invested in a more liquid asset, e.g stocks that you can buy and sell at anytime, without a maturity clause.
It is also imperative to keep some emergency funds, so you won’t be stranded while locking away your money for some period of time.
As a beginner, the first step of investing is opening a brokerage account. A stockbroker is a financial professional who executes orders in the stock market on behalf of clients. Before opening a brokerage account, it is imperative to check if the broker is registered under the Security and ExchangeRead more
As a beginner, the first step of investing is opening a brokerage account.
A stockbroker is a financial professional who executes orders in the stock market on behalf of clients.
Before opening a brokerage account, it is imperative to check if the broker is registered under the Security and Exchange Commission (SEC).
Bamboo stockbroker requires a minimum amount of 5,000 in order to buy shares.
Honestly, it is imperative to start your stock market journey with an amount you can afford to lose.
Shares to buy in order to receive dividends:
1. Blue-chip stocks: These are shares of companies are large, strong, popular, and they also pay dividends. Such companies cannot collapse suddenly. Example of blue-chip stocks: MTN, Zenith bank, e.t.c.
As a beginner, receiving dividends is important to grow your wealth.
2. Ensure to check the liquidity status of the company before buying its shares: There are stocks of high liquidity and stocks of low liquidity. Liquidity is the ability of shares to be bought and sold fairly and quickly.
3. Check the total debt v net debt of the company: Total debt is the whole amount a company owes after adding its short-term debt and long-term debt, while net debt is the amount a company has to pay after using its available cash and cash equivalents to pay some part of its total debt.
A company whose net debt is very close or greater than its total debt is running at a risk.
4. Ensure to diversify: Diversification means spreading assets across various sectors, industries and geography. Do not invest all capital on one sector of shares. It is imperative to invest in the financial sector (bank shares), the Energy sector (oil & gas), Telecom sector ( MTN, e.t.c.), including the cement and consumer goods industry.
Diversification helps to spread risk and balance losses.
5. You can use the historical data of a company to check its support and resistance level.
The support level is the price shares falls to before buyers begin to buy, while the resistance level is the price shares rises to before sellers begin to sell off their shares.
The support and resistance level serves as a guide to know when to buy and sell shares.
1. Create a Strict Budget: Prioritize "must-pay" expenses (rent, utilities, groceries, transport) over "wants" (entertainment, dining out). It is imperative to choose your "needs" over "wants". 2. Track Every Expenditure: Use an app or notebook to log every expense to identify where your money is goRead more
1. Create a Strict Budget: Prioritize “must-pay” expenses (rent, utilities, groceries, transport) over “wants” (entertainment, dining out).
It is imperative to choose your “needs” over “wants”.
2. Track Every Expenditure: Use an app or notebook to log every expense to identify where your money is going.
3. Audit Subscriptions: Review and temporarily cancel unused streaming services, apps, or gym memberships.
4. Avoid New Debt: Avoid payday loans or “buy-now-pay-later” schemes, which can start a cycle of debt.
5. Buy in bulk: Buy non-perishable goods in bulk. It is cheaper than buying every time.
6. Apply the 5% rule: Never you spend every penny. Spend 5% and save 5%. Ensure to always have savings. You can use a separate bank account for your savings. An account that you will have no ATM card nor access to the bank app.
7. Do not try to impress others. Ensure not to live above your income.
Some stockbrokers fill and submit the e-dividend mandate form automatically on behalf of the investor, sometimes, your dividend can be sent directly to the bank account used in opening your brokerage account. Well, to be on a safer side, identify the Registrar in charge of the shares you bought andRead more
Some stockbrokers fill and submit the e-dividend mandate form automatically on behalf of the investor, sometimes, your dividend can be sent directly to the bank account used in opening your brokerage account.
Well, to be on a safer side, identify the Registrar in charge of the shares you bought and fill the e-dividend mandate form.
Some mistakes beginners should avoid in the stock market: 1. Buying shares based on hype: As an investor, do not buy shares based on hype or because its value went up quickly. Use the support and resistance level to understand when to buy and sell. The support level is the price shares get to beforeRead more
Some mistakes beginners should avoid in the stock market:
1. Buying shares based on hype: As an investor, do not buy shares based on hype or because its value went up quickly. Use the support and resistance level to understand when to buy and sell.
The support level is the price shares get to before rising again and buyers begin to dominate the market, while the resistance level is the price it gets to before falling and sellers begin to dominate the market, thereby leading to a dip. A beginner buyer who buys shares at its resistance level is likely to lose money when it falls.
2. Investing with urgent money: The stock market is for patient money, and not urgent money. Do not invest with the money meant for house rent, school fees, or other basic needs, because such investor would be pressured to sell at a loss because of the need for the money.
3. Panic selling: As soon as share prices drop, some investors panic, and rush to sell. Every big stock has had a season it dropped, only to later double or triple in value.
4. Failure to check total debt v net debt: Ensure to check the total debt and net debt of the company you intend to invest in. A company whose net debt is very close or greater than its total debt is running at a risk.
5. Failure to diversify: Avoid investing all capital in one sector of shares. Diversify your capital into different sectors and industries, e.g Telecom sector, Consumer goods sector, Energy and Cement industry. Diversification helps to spread risk and balance losses.
6. Ignoring dividend and compounding: Dividend is the profit made by companies and distributed to shareholders. Ensure to check if the company pays dividend before buying its shares.
If the company pays dividend, avoid spending your dividends. That is the law of compounding. Reinvest your capital gains and dividends in order to grow your wealth.
The first step to fill an e-dividend mandate form is to identify the Registrar in charge of the shares you bought. You could search the name of the Registrar online. After you have identified the Registrar, you can fill and submit the form using any of these methods: 1. Physical Submission at a RegiRead more
The first step to fill an e-dividend mandate form is to identify the Registrar in charge of the shares you bought. You could search the name of the Registrar online.
After you have identified the Registrar, you can fill and submit the form using any of these methods:
1. Physical Submission at a Registrar’s Office: Shareholders can fill the form and submit it directly to the office of the registrar handling their shares.
2. Email Submission: Many registrars, allow shareholders to scan and send their filled, signed forms via email to a designated email address.
3. NIBSS E-Dividend Mandate Management System (E-Dmms) Portal: This is a largely automated method where an investor uses the NIBSS website portal to upload required documents, such as a signature, passport, and ID, for online submission. The Securities and Exchange Commission, Nigeria has also introduced a self-service portal to allow for virtual submission.
4. Registrars’ E-Mandate Platforms: Some registrars have their own online portals, such as e-dividend.cardinalstone.com, where investors can directly fill out and submit their mandate information online.
5. Stockbroker-Assisted Submission: Some stockbrokers usually assist in filling the form and facilitating the submission process to the Registrar on behalf of the investor.
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or government). How it Works: You lend your money to the issuer, and in return, they promise to pay you a fixed interest rate (called a coupon) at regular intervals (e.g., every three moRead more
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or government).
How it Works:
You lend your money to the issuer, and in return, they promise to pay you a fixed interest rate (called a coupon) at regular intervals (e.g., every three months) and return your original amount (principal) at the end of a specific period (maturity).
Why Buy Them:
They are generally low-risk, especially government bonds, and provide a steady, predictable income stream, making them a better option than leaving money in a standard savings account.
Can I Buy Bonds with ₦10,000?
Yes. The Federal Government of Nigeria (FGN) Savings Bond is specifically designed for small investors.
Minimum Investment: The minimum amount to start is ₦5,000.
Bonds can be bought through Afrinvest, Stanbic IBTC, e.t.c.
Bonds are issued once in a month for some days.
Key Features of FGN Savings Bonds (For Small Investors)
* Safe: Backed by the Federal Government of Nigeria.
* High Returns: Interest rates are competitive, often in the 15%–18% range per annum.
* Regular Income: Interest is paid directly into your bank account every 3 months (quarterly).
* Tax-Free: The interest earned on government bonds is tax-exempt.
* Tenor: Usually 2 to 3 years.
There is also a “Regular bond” which is issued by the FGN, but cannot be bought with 5,000 or 10,000. The buying price is extremely high, it is not for small investors. Meanwhile, it could take 3-50 years for maturity.
The primary difference between "capital market" and "money market" is maturity. * Capital market trade long-term securities (over 1 year) like stocks and bonds for growth, whereas money market trade short-term, low-risk, high-liquidity debt (under 1 year) like T-bills for cash management. * CapitaRead more
The primary difference between “capital market” and “money market” is maturity.
* Capital market trade long-term securities (over 1 year) like stocks and bonds for growth, whereas money market trade short-term, low-risk, high-liquidity debt (under 1 year) like T-bills for cash management.
* Capital markets offer higher potential returns with higher risk, while money markets focus on safety.
Key Differences: Capital Market vs. Money Market.
1. Maturity Period: Capital market instruments have a maturity of over a year, while money market instruments mature within a year.
2. Purpose: Capital markets are used for long-term investments (capital expansion), while money markets are used for short-term liquidity needs and working capital.
3. Risk & Return: Capital markets are high-risk with potential for higher returns, whereas money markets are low-risk (safer) with lower and more stable returns.
The shares listed are shares of public companies as private companies are exempted from listing shares on the Exchange. You can use Bamboo app to buy shares in as much as they are listed on the Exchange. It is imperative to know that the minimum amount to start trading with on the Bamboo app is 5,Read more
The shares listed are shares of public companies as private companies are exempted from listing shares on the Exchange.
You can use Bamboo app to buy shares in as much as they are listed on the Exchange.
It is imperative to know that the minimum amount to start trading with on the Bamboo app is 5,000.
How Can I Invest Over ₦50 Million in Federal Government Bonds in Nigeria?
FG bonds are safe and returns are guaranteed, but as an investor, it is imperative to diversify. FG bonds can only be withdrawn at maturity, which could take some years, but there are other aspects of the stock market you could spread your 50 million into. You can invest some of it on FG bond, whileRead more
FG bonds are safe and returns are guaranteed, but as an investor, it is imperative to diversify.
FG bonds can only be withdrawn at maturity, which could take some years, but there are other aspects of the stock market you could spread your 50 million into.
You can invest some of it on FG bond, while other part of the money could be invested in a more liquid asset, e.g stocks that you can buy and sell at anytime, without a maturity clause.
It is also imperative to keep some emergency funds, so you won’t be stranded while locking away your money for some period of time.
See lessHow Should a Beginner Start Investing, Which Apps Are Best, and What Amount Is Needed to Begin?
As a beginner, the first step of investing is opening a brokerage account. A stockbroker is a financial professional who executes orders in the stock market on behalf of clients. Before opening a brokerage account, it is imperative to check if the broker is registered under the Security and ExchangeRead more
As a beginner, the first step of investing is opening a brokerage account.
A stockbroker is a financial professional who executes orders in the stock market on behalf of clients.
Before opening a brokerage account, it is imperative to check if the broker is registered under the Security and Exchange Commission (SEC).
List of some stockbrokers:
* Stanbic IBTC; * Afrinvest; * Investnaija; Chaka, Bamboo, Cowrywise, e.t.c.
Bamboo stockbroker requires a minimum amount of 5,000 in order to buy shares.
Honestly, it is imperative to start your stock market journey with an amount you can afford to lose.
Shares to buy in order to receive dividends:
1. Blue-chip stocks: These are shares of companies are large, strong, popular, and they also pay dividends. Such companies cannot collapse suddenly. Example of blue-chip stocks: MTN, Zenith bank, e.t.c.
As a beginner, receiving dividends is important to grow your wealth.
2. Ensure to check the liquidity status of the company before buying its shares: There are stocks of high liquidity and stocks of low liquidity. Liquidity is the ability of shares to be bought and sold fairly and quickly.
3. Check the total debt v net debt of the company: Total debt is the whole amount a company owes after adding its short-term debt and long-term debt, while net debt is the amount a company has to pay after using its available cash and cash equivalents to pay some part of its total debt.
A company whose net debt is very close or greater than its total debt is running at a risk.
4. Ensure to diversify: Diversification means spreading assets across various sectors, industries and geography. Do not invest all capital on one sector of shares. It is imperative to invest in the financial sector (bank shares), the Energy sector (oil & gas), Telecom sector ( MTN, e.t.c.), including the cement and consumer goods industry.
Diversification helps to spread risk and balance losses.
5. You can use the historical data of a company to check its support and resistance level.
The support level is the price shares falls to before buyers begin to buy, while the resistance level is the price shares rises to before sellers begin to sell off their shares.
The support and resistance level serves as a guide to know when to buy and sell shares.
See lessWhat Are the Best Money Management Strategies to Survive in Nigeria Before the Next Salary?
1. Create a Strict Budget: Prioritize "must-pay" expenses (rent, utilities, groceries, transport) over "wants" (entertainment, dining out). It is imperative to choose your "needs" over "wants". 2. Track Every Expenditure: Use an app or notebook to log every expense to identify where your money is goRead more
1. Create a Strict Budget: Prioritize “must-pay” expenses (rent, utilities, groceries, transport) over “wants” (entertainment, dining out).
It is imperative to choose your “needs” over “wants”.
2. Track Every Expenditure: Use an app or notebook to log every expense to identify where your money is going.
3. Audit Subscriptions: Review and temporarily cancel unused streaming services, apps, or gym memberships.
4. Avoid New Debt: Avoid payday loans or “buy-now-pay-later” schemes, which can start a cycle of debt.
5. Buy in bulk: Buy non-perishable goods in bulk. It is cheaper than buying every time.
6. Apply the 5% rule: Never you spend every penny. Spend 5% and save 5%. Ensure to always have savings. You can use a separate bank account for your savings. An account that you will have no ATM card nor access to the bank app.
7. Do not try to impress others. Ensure not to live above your income.
See lessDo I Need to Fill an E-Dividend Mandate When Using Bamboo App in Nigeria?
Some stockbrokers fill and submit the e-dividend mandate form automatically on behalf of the investor, sometimes, your dividend can be sent directly to the bank account used in opening your brokerage account. Well, to be on a safer side, identify the Registrar in charge of the shares you bought andRead more
Some stockbrokers fill and submit the e-dividend mandate form automatically on behalf of the investor, sometimes, your dividend can be sent directly to the bank account used in opening your brokerage account.
Well, to be on a safer side, identify the Registrar in charge of the shares you bought and fill the e-dividend mandate form.
See lessWhat Investment Mistakes Should Beginners Avoid in Their First Year of Investing?
Some mistakes beginners should avoid in the stock market: 1. Buying shares based on hype: As an investor, do not buy shares based on hype or because its value went up quickly. Use the support and resistance level to understand when to buy and sell. The support level is the price shares get to beforeRead more
Some mistakes beginners should avoid in the stock market:
1. Buying shares based on hype: As an investor, do not buy shares based on hype or because its value went up quickly. Use the support and resistance level to understand when to buy and sell.
The support level is the price shares get to before rising again and buyers begin to dominate the market, while the resistance level is the price it gets to before falling and sellers begin to dominate the market, thereby leading to a dip. A beginner buyer who buys shares at its resistance level is likely to lose money when it falls.
2. Investing with urgent money: The stock market is for patient money, and not urgent money. Do not invest with the money meant for house rent, school fees, or other basic needs, because such investor would be pressured to sell at a loss because of the need for the money.
3. Panic selling: As soon as share prices drop, some investors panic, and rush to sell. Every big stock has had a season it dropped, only to later double or triple in value.
4. Failure to check total debt v net debt: Ensure to check the total debt and net debt of the company you intend to invest in. A company whose net debt is very close or greater than its total debt is running at a risk.
5. Failure to diversify: Avoid investing all capital in one sector of shares. Diversify your capital into different sectors and industries, e.g Telecom sector, Consumer goods sector, Energy and Cement industry. Diversification helps to spread risk and balance losses.
6. Ignoring dividend and compounding: Dividend is the profit made by companies and distributed to shareholders. Ensure to check if the company pays dividend before buying its shares.
If the company pays dividend, avoid spending your dividends. That is the law of compounding. Reinvest your capital gains and dividends in order to grow your wealth.
See lessHow Do I Fill an E-Mandate Form for Dividend Payments in Nigeria?
The first step to fill an e-dividend mandate form is to identify the Registrar in charge of the shares you bought. You could search the name of the Registrar online. After you have identified the Registrar, you can fill and submit the form using any of these methods: 1. Physical Submission at a RegiRead more
The first step to fill an e-dividend mandate form is to identify the Registrar in charge of the shares you bought. You could search the name of the Registrar online.
After you have identified the Registrar, you can fill and submit the form using any of these methods:
1. Physical Submission at a Registrar’s Office: Shareholders can fill the form and submit it directly to the office of the registrar handling their shares.
2. Email Submission: Many registrars, allow shareholders to scan and send their filled, signed forms via email to a designated email address.
3. NIBSS E-Dividend Mandate Management System (E-Dmms) Portal: This is a largely automated method where an investor uses the NIBSS website portal to upload required documents, such as a signature, passport, and ID, for online submission. The Securities and Exchange Commission, Nigeria has also introduced a self-service portal to allow for virtual submission.
4. Registrars’ E-Mandate Platforms: Some registrars have their own online portals, such as e-dividend.cardinalstone.com, where investors can directly fill out and submit their mandate information online.
5. Stockbroker-Assisted Submission: Some stockbrokers usually assist in filling the form and facilitating the submission process to the Registrar on behalf of the investor.
See lessWhat Is the Difference Between the Capital Market and the Stock Market in Nigeria?
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See lessWhat Is a Bond Investment and Can I Start With as Low as ₦10,000?
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or government). How it Works: You lend your money to the issuer, and in return, they promise to pay you a fixed interest rate (called a coupon) at regular intervals (e.g., every three moRead more
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or government).
How it Works:
You lend your money to the issuer, and in return, they promise to pay you a fixed interest rate (called a coupon) at regular intervals (e.g., every three months) and return your original amount (principal) at the end of a specific period (maturity).
Why Buy Them:
They are generally low-risk, especially government bonds, and provide a steady, predictable income stream, making them a better option than leaving money in a standard savings account.
Can I Buy Bonds with ₦10,000?
Yes. The Federal Government of Nigeria (FGN) Savings Bond is specifically designed for small investors.
Minimum Investment: The minimum amount to start is ₦5,000.
Bonds can be bought through Afrinvest, Stanbic IBTC, e.t.c.
Bonds are issued once in a month for some days.
Key Features of FGN Savings Bonds (For Small Investors)
* Safe: Backed by the Federal Government of Nigeria.
* High Returns: Interest rates are competitive, often in the 15%–18% range per annum.
* Regular Income: Interest is paid directly into your bank account every 3 months (quarterly).
* Tax-Free: The interest earned on government bonds is tax-exempt.
* Tenor: Usually 2 to 3 years.
There is also a “Regular bond” which is issued by the FGN, but cannot be bought with 5,000 or 10,000. The buying price is extremely high, it is not for small investors. Meanwhile, it could take 3-50 years for maturity.
See lessWhat Is the Difference Between the Capital Market and the Stock Market in Nigeria?
The primary difference between "capital market" and "money market" is maturity. * Capital market trade long-term securities (over 1 year) like stocks and bonds for growth, whereas money market trade short-term, low-risk, high-liquidity debt (under 1 year) like T-bills for cash management. * CapitaRead more
The primary difference between “capital market” and “money market” is maturity.
* Capital market trade long-term securities (over 1 year) like stocks and bonds for growth, whereas money market trade short-term, low-risk, high-liquidity debt (under 1 year) like T-bills for cash management.
* Capital markets offer higher potential returns with higher risk, while money markets focus on safety.
Key Differences: Capital Market vs. Money Market.
1. Maturity Period: Capital market instruments have a maturity of over a year, while money market instruments mature within a year.
2. Purpose: Capital markets are used for long-term investments (capital expansion), while money markets are used for short-term liquidity needs and working capital.
3. Risk & Return: Capital markets are high-risk with potential for higher returns, whereas money markets are low-risk (safer) with lower and more stable returns.
See lessCan I Buy Stocks During a Public Offer Using Bamboo?
The shares listed are shares of public companies as private companies are exempted from listing shares on the Exchange. You can use Bamboo app to buy shares in as much as they are listed on the Exchange. It is imperative to know that the minimum amount to start trading with on the Bamboo app is 5,Read more
The shares listed are shares of public companies as private companies are exempted from listing shares on the Exchange.
You can use Bamboo app to buy shares in as much as they are listed on the Exchange.
It is imperative to know that the minimum amount to start trading with on the Bamboo app is 5,000.
See less