By John Njeri – ABC Bank Diaspora Banking
Are you interested in investing and don’t know where to start? Investing is an easy way of diversifying your financial portfolio and growing savings. It is crucial to understand the different investment options available, risk levels and potential returns.
Akin to this, is your investment goal which helps determine the type of investment that will work best for you. e.g. saving for retirement, an extra source of income or a big purchase. You will also need a budget to ensure you have funds for investing.
Some of the investment options available in Kenya are:
- Fixed deposits – FD savings accounts give you higher interest rates than regular savings accounts.
- T-bills and Bonds – These are short and long-term government securities which earn you competitive interest rates
- Stock market – Stocks are company shares whose value grows/decreases based on the company’s growth. Companies with strong performance are less volatile making them good to invest in.
- Real estate – You can buy land in developing areas, purchase rental properties or if short on capital, consider Real Estate Investment Trusts (REITS).
- Saccos – Saccos offer attractive loan products and investment opportunities.
- Mobile investment apps – Apps like Chumz and M-pesa have made it easy for Kenyans to invest while offering convenience and flexibility.
While investing is rewarding, it’s essential to avoid common pitfalls like:
- Lack of Research to understand the risks and potential returns.
- Investing in something just because everyone else is. Make informed decisions based on your research and goals.
- Investing in high-risk investments with ‘quick’ returns.
Ready to start your investment journey? Investing requires patience, discipline and staying up-to-date with current trends e.g. there’s growing interest in green energy and technology, reflecting a shift towards sustainability and innovation. Remember, the goal is to grow your wealth gradually while minimizing risks!
Need professional help? Call us today at 0701700700 or talk2us@abcthebank.com to explore our friendly investment products tailored just for you.