Investment offers many avenues to grow your existing income. And despite the current state of the Ghanaian financial sector, there are still a lot of rewarding investment instruments to explore. Regardless of whatever investment decision you make, you must ascertain your risk appetite to be confident in your choice.
Let’s start with a quick game to help you discover the type of investor you are…
HOW WOULD YOU FEEL IF YOU INVESTED GHC 1,000 FOR 5 YEARS AND REALIZED THAT AFTER THE FIRST YEAR THE VALUE DROPPED BY 10% (now valued @ GHC 900)?
|Type A||I will be extremely concerned and would sell my investment.|
|Type B||I will be concerned and will consider selling my investment.|
|Type C||I will be concerned, but I will NOT consider selling my investment.|
|Type D||I will NOT mind; I am in it for the long haul.|
Type A – Low-risk profile
Type B & C – Medium risk profile
Type D- High-risk profile
REAL ESTATE VS OTHER INVESTMENT OPTIONS
Choosing an investment portfolio depends on several factors, as mentioned earlier. You need to evaluate your risk tolerance, the track record of the investment company, potential return on investment, portfolio management, amongst many others. But in building a rich portfolio, one must not limit their investments to one sector.
This, however, begs the question: which sectors are worth the investment? Here, we will look at some of the more popular investment options and see how they fare against Real Estate.
Real estate investment is one suite that has been proven over the years to be highly profitable. This is because real estate allows the investor to profit in more ways than one. By purchasing a real estate investment, you are not only investing in a physical asset that will appreciate over time; you are dealing with an investment that provides you with the opportunity to generate a monthly cash flow through rental income.
Over the years, real estate investment has undergone some exciting changes. Updates in artificial intelligence, the stock market, crowdfunding options, socially motivated investments have helped change the face of real estate investment.
One company that stands in this area is Cofundie. Cofundie is a crowdfunding real estate investment platform that allows you to experience a 360 real estate investment experience. Their packages are ideal for all levels of risk tolerance. They adopt a fun crowdfunding approach using the latest advancements in digitisation to aid the sponsoring the construction of affordable homes.
While real estate is arguably one of the best investments to make, other avenues can help diversify your portfolio.
Stocks tend to increase in profits and cash dividends over time. The most obvious dilemma for stock investors is the unpredictable nature of the stocks due to market volatility and the amount of knowledge required to get started.
An accessible route to take would be to invest in mutual funds to buy stocks in multiple companies at a time to enable you to spread your investment capital and lessen the overall amount of risk you take on.
Bonds are perfect for people with low-risk tolerance. However, as the adage goes, the less risk, the less return. With bonds, you have various options like corporate bonds, government bonds, and many others.
One highly influential company when it comes to the investment of mutual funds and bonds is Cowrywise. They are a Nigerian fintech startup that makes it possible for anyone to invest any amount in Nigerian mutual funds and get returns.
Now, this is the safest choice for those who aren’t open to taking on risk of any kind, but where is the fun in that? As Robert G. Allen put it, “How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” And so do I.
In conclusion, you want to make sure that your money is put to good use, and what is better than making it make even more money for you? So long as you are confident and secure in your investment, you are good to go.
If you would like to speak to a financial advisor to help you make the right investment decision, you can contact us @ email@example.com or message us on social media @cofundie.