Kenya has a wide range of sectors with ready to be accessed investment opportunity for the platform provides access to bankable projects open for investment. People need to be well prepared for both the risks and returns that come with the investment. An investor should properly plan i.e by saving and knowing where to invest the money after considering the risks associated with it.
One needs an eye for opportunity, open mind and a desire to succeed. How and when one starts saving their money will determine its effectiveness in the long run. So there are a number of ways of investing for both beginners and experts like:
Investing in real estate – real estate investors make money through rental income and it’s the best investment option due to its diversification potential i.e it can lower portfolio volatility and provide a higher return per unit of risk.
Investing in mutual funds – this is a type of investment where money is pooled from many investors and then invested in securities like stocks and bonds. It creates a more diversified portfolio and it can either lead to a capital gain or loss when the securities are sold when the prices are high or low.
Investing in yourself – this involves beginning a business of your own and investing in it. It makes a difference in your well being and your ability to thrive and gives a sense of satisfaction and fulfillment for it involves taking a raw personal portfolio and enacting a plan to increase your value and take it to the next level.
Savings– it’s advisable to save between 10%-15% of the annual income and open a savings account for collecting interest and the best place to save is in a bank since they offer guaranteed returns and has low risks.
Collective savings – this offers an economic empowerment solution by offering financial services to its members. It allows savings and also provides interest.
Capital markets – This is where savings and investments are channeled between the suppliers who have capital and those in need of capital. In it, firms market debt securities such bonds, derivatives and shares.
For the beginners, you need to make a budget which will help you estimate your revenues and expenses over a period of time, understand the risks of the investment you’ve chosen, set a realistic target that you can easily achieve considering your financial position and finally invest in long term investment opportunities for long term returns.