The average man seeks to secure a good job, hope to purchase that prestigious car and dwell in that house he has long been dreaming about. Creating wealth does not come on a silver platter but through dint of hard work and wise investments.
Jumia House Ghana, the best online real estate marketplace shares with you six investment tools that can help you create the wealth you have been craving for.
1. Savings Account
The most basic form of investment, having a savings account is one way to store up the little contributions made for a better and wealthier future. In Ghana, banks and savings companies have been empowered by the Constitution to store and protect the monies deposited by account holders. The added feature of flexibility, that is, having access to the account also makes this a very attractive option. Having a savings account also comes with the least risk. However, the interest accrued from savings can be quite little, with rates between 2 to 10%.
2. Treasury Bills
A treasury bill is a short term -debt issued and backed by the full faith and credit of the Ghana government. Treasury bills are low risk in nature, as they are a credit worthy institution by the governement. Treasury bill rate in Ghana are fixed. Maturity dates for treasury bills fall into three types: 91 days, 182 days, 1-year note and two year note. Both the principal and interest can be rolled over after maturity for higher returns. According to statistics provided by the Bank of Ghana on 28th August 2014, 91-day bills accrue an interest of 25 percent, the 182-day bill yielding 26 percent, the 1-year note yielding 22.5 percent while the two year note yields 23 percent.
3. Fixed Deposit
The banks’ version of treasury bills, a fixed deposit is an investment account into which money is deposited for a fixed period, while the interest remains the same. Fixed deposits also have a fairly low financial risk. Fixed deposits come in 30-day, 60-day, 91-day, 182-day and 1-year, two year periods respectively. Interest ranges vary from bank to bank and is averagely 15 year per annum. The good deal with this is, you can negotiate for better interest rates depending on the amount and period chosen. Fixed deposits can also be discounted, meaning cash can be redeemed before maturity, albeit at a fee.
4. Shares/ Stock Exchange
Shares or stocks are investments made in a company in return for dividends. In Ghana, the Ghana Stock Exchange regulates this transaction. Stocks are volatile, as such, they assume the greatest investment risk. Investing in stocks need the guidance of an expert called a stock broker, who will guide you into making the right decisions.
Bonds are long-term financial instruments and have fixed interest rates. Bonds are considered low in risk because when there is bankruptcy debts are paid before equity.
6. Mutual Funds
A mutual fund is a professionally managed type of collective instrument scheme. It involves monies pooled from different sources that is then diversified into different money market instruments. The risk for mutual funds is relatively high due to the uncertainty of returns.