Investment: How Does 7.63% Return Sound to You

Investment: How Does 7.63% Return Sound to You?

A 7.63% return on investment may look small but it reduces inflation pressures on your naira spending. Many Nigerians are comfortably keeping at least N100,000 in their savings account for more than 365 days – deliberately or otherwise.

A savings account is for random spenders and the Nigerian economy of today cannot really tolerate such an attitude. The era of randomness has ended as Naira goes to where it is treated well now.

Unknowing to some people, that amount could give them additional income amidst rising inflation.

Though, current investment dynamics has seen yields falling behind an average increase in the headline inflation rate.

In an email sent to clients, Afrinvest asset managers said with a minimum of ₦100,000.00, you can have access to yields as high as 7.63% for 316 days if you invest through Afrinvest Securities today.

Asset managers further explained that the Nigerian Treasury Bill comes low-risk, as they are issued by the Federal Government of Nigeria and is also tax-free.

Treasury bill is a very liquid asset as they are actively traded in the secondary market. This means you can sell it should there be an urgent need for cash.

Financial literate people don’t have a savings account and always look for a better ground to sow their money seeds.

Comparably, Yields on Treasury instrument is higher, thus, gives more attractive rates and returns relative to savings accounts and it can be used as collateral for loans.

It doesn’t have to be a forever investment. Nigerian Treasury is short-term as investment duration ranges between 1-12 months. 

You may just need to fund your account for onward investment in fixed income securities with the hope that possible yield repricing will favour your holdings.

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Investment: How Does 7.63% Return Sound to You?