Who Should Invest in Treasury Bills, Bonds?
Fixed-income market securities are for those that have made money, and the only thing they need now is to preserve their wealth. A 50% annual return on a small investment outlay cannot make anyone rich or bring you into the high-net-worth individual fold.
It is an absolute way to avoid investment drama, meaning you don’t want to take risk with what you have. Investment in fixed-interest income assets is far better than keeping your money in savings.
What do you think your banks do with your deposit? Check their financial statements and see how much they place on investment securities.
Imagine about a 20% annual return on N1 trillion investment bets in the fixed income market. High net individuals love it, but you need more than 20% to have a meaningful net worth.
In Nigeria, we say ‘at-all at-all na im bad’… simply means getting nothing from something is the worst economic decision anyone can take.
It is better to invest in Treasury bills than do nothing with free cash. You can lose your money if you buy shares, and trading forex or crypto can make or damage you.
But you are safer with government bonds, treasury bills and commercial papers than you are when you are in the stock market.
You are exposed to near-zero risk if you buy government bonds, except if your country has bigger economic problems that trigger default. Do the maths! MTN Nigeria Rallies to Record High on Renewed Investor Confidence
