As global financial markets swing recklessly within the storm of COVID-19, it’s easy to be confused when deciding what investment vehicle to leap thereon would maximize one’s profits. Win9aija interviewed some financial experts, entrepreneurs, and company heads and asked for his or her opinions on what sector they might invest in if that they had , say, N5 million capital.
Investment analysts advice on sorts of opportunities starting from buying stocks to investing in Eurobonds, cryptocurrencies, foreign currencies, and even angel investment.
Olusayo Tola-Adenaike (ACA, ACMA, CGMA) Financial Business Partner, Oil Multinational Firm
The treatment of N5m investment will vary from one individual to the opposite , counting on whether you’ve got an Emergency Fund, and therefore the current proportion of your portfolio.
On a private note, additional N5m investment are going to be used for either of those options:
If I can get USD at on the brink of the official rate, i will be able to convert the whole sum and invest 50% into a Eurobond and 50% in my USD open-end fund .
I would invest the whole N5m into a reliable and high-interest Agric crowdfunding arrangement.
I would invest N2.5m into my Naira market fund and can split N2.5m into 10 places to offer short term interest yielding loans to family/friends who are providing services that are essential during this period (food, logistics, pharmacies, supermarkets, etc).
Elile Olutimayin, ACS, director at CardinalStone Securities Limited
A lot must be considered when giving investment advice to a possible investor – age, risk tolerance, cash flow, cash obligations, duration, and details on the investor’s overall portfolio to make sure diversification.
With the worth to earnings ratio of the Nigerian stock exchange currently around 7.2x, it’s undervalued in comparison to some emerging and frontier markets; a big upside potential exists for our market post-COVID-19, and if key macro concerns are addressed.
With N5million and a 12 to 18-month investment horizon, i might invest in some very decent names on the local bourse. My preferences within the banking sector are tier 1 names like FBNH, Zenith, Guaranty, and UBA. For the non-banks, Dangote Cement and MTNN are my top picks.
Silas Ozoya, Managing Partner, SUBA Capital
With an N5 million fund, i might first analyze the danger involved in whatever investment vehicle portfolio I shall invest it in, consider the speed of return on investment via the tenor of the investment, and frequency of return before taking such a choice .
My top investment portfolios of choice would be agriculture, land , and therefore the capital market to fulfil long, medium, and short term tenors.
I would invest 60% of the fund in Agriculture to supply more food and make jobs, 20% in rental land , and 20% within the Capital marketplace for liquid income .
Yele Bademosi Founding Partner, Microtraction and Director at Binance Labs
Bitcoin, for the last 10 years, has been the simplest performing asset of any asset type/class so I’m an extended term holder.
BNB is that the network token for Binance Chain and is one among the few crypto assets I’m an extended term holder in. It fits into an investment thesis I’m developing for platform/network tokens for both crypto assets.
I think there’s a greater than 50% chance that both will return a minimum of 25% from their current price at some point over subsequent 12 months (probably higher).
In addition, Eurobond may be a dollar-based investment so it’s an honest hedge against any potential devaluation with decent annual returns.
For Tech Stock ETFs, I’m very long on tech; they’re during a ll|one amongst|one in every of” one among the few sectors which will potentially thrive even in a downturn and have the pliability to manoeuvre headwinds.
Samed Olukoya Founder & Chief military officer at Investors King
The recent currency devaluation has increased Nigeria’s exchange rate, cost of importation, and price of doing business generally , while high unemployment, weak earnings, and low household incomes have impacted consumer spending.
Therefore, the danger related to the important economy at this point has risen and definitely requires extra money to mitigate.
I will invest within the exchange market where demands and supplies are readily available given my background and knowledge .
Kindly consult your financial adviser if you’re trying to find professional consulting service .