5 Low-risk investment options in Nigeria

However, a low-risk investment is one in which the chances of losing your assets are very low. It does not, however, indicate your certainty of a 100% ROI, but it will likely reduce the chances of capital investment.

The downside of the low-risk investment option is that the profit margin of ROI is low, but it surely helps in scaling cash flow and increasing the value of your assets overtime.

Hence, we shall together look at five options that are profitable to invest in Nigeria, allowing you to scale your cash flow rather than just leaving the valueless money in the bank.

Savings bonds issued by the Federal government

This is also a very good place to invest, as it is low-risk and its returns are quite high and profitable.

It involves an individual purchasing bonds from the government and using them to fund a government project. The interesting part about this investment is that

1. They are cheap to buy.

2. They are easily liquidated. "

3. It does involve tax payment.

4. It can be held for a long period, e.g., twenty years.

Agriculture

Agriculture, being one of the oldest forms of investment, is being abandoned since the dissipation of crude oil. However, this trend does not make it a bad option for investment. It seeks to bring in a high ROI with a very low chance of losing your capital. It is a very good option for investment as one can put his capital in different branches of agriculture such as livestock, cropping, fish farming, etc.

Treasury bill

Bill is a short-term sovereign debt security that matures over one year. They are usually sold to individuals and corporations at a discount through the Central Bank of a nation. This is a risk-free investment option as it involves an investor buying a Treasury Bond from the Central Bank of Nigeria and keeping it for a long period. The return rate on this option is very high too.

Real estate investment

Real estate investment is the type of investment that involves an investor putting their capital into physical assets such as buildings and land. This option serves as the most secure form of investment. It is very profitable as well, as the price of the building or land doubles over 10 years. Although the downside of this option is due to its liquidity, it can be sold and be easily converted to cash. It requires huge capital to start this kind of investment.

Nonetheless, the benefits are not to be underrated. It is a good option for anyone who has considered it.

Mutual funds

Mutual funds are a type of investment that involves combining capital with other investors to invest in assets such as communication. These are assets that one might be able to invest in alone. This investment pleads with religious beliefs. Several companies offer this kind of investment option, including IBTC and the UBA group, amongst others. It is also a very good option to consider investing in.

Conclusion

Investing is a way of driving wealth and values forward. It seeks to help us increase the value of our assets over a long period rather than lay it lying in our account. My advice is for you to pick the one that interests you and invest in it. However, ensuring quality research is done on any company before making a further decision is important. Invest, the equivalent increase in wealth.