If you are looking to invest your money wisely in Nigeria, there are some steps you will need to carry out to ensure that you’re making the right decision.
1. Invest in products you understand
Many first-time investors delve into the investment game with little or no knowledge of the products they are investing in. The right way to invest your funds is by investing them in different instruments that you understand, or with a company you trust. If a deal is too good to be true, it most probably is. Only invest in products you fully understand.
At www.overwood.ng, we help our members to invest their funds in safe, high-yield investment products by conducting due diligence on multiple investment products, then selecting the best and safest.
2. Research on a company before investing
Many people concentrate on products rather than the company providing the products. It is important to first carry out due diligence on a company before investing with them. That way, you would understand the model and intricacies of the investment before venturing into it.
3. Understand your risk appetite
Everyone has a capacity of risk they are willing to take. An aggressive investor is one who prioritizes high-risk investment products to low-risk products, while a conservative investor prefers to invest in low-risk products. Knowing your risk appetite will guide your investment decisions. The higher the risk, the higher the returns, and the probability of losing your funds.
After deciding on the amount of risk you are willing to take, make a list of your investment options and categorize them according to their risk levels (high, medium, or low-risk). Then, choose the right investment mix that satisfies your goals and risk profile.
4. Create an investment portfolio
Diversification is the safest way to play the investment game and this is why you need an investment portfolio. An investment portfolio is a set of assets owned by an individual (investor).
To create your investment portfolio, split your investment fund into three buckets, and maintain at least a 5% difference of each bucket.
5. Monitor your investment
As you invest in different instruments, don't forget to monitor your investments. You can also rebalance them when you go above the percentage you want to hold, and then diversify your investment again.
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