By Babajide Komolafe

Last week’s article concluded the series on “You can Invest”. Expectedly the series generated some reactions from readers in the form of questions and comments. A few of the questions and our responses are presented below for the benefit of other readers.

Reader

Hey I love your article on investment.  I am 19 years and   a Year 2 student studying mathematics. My monthly allowance is between N8000 and N15000. What kind of investment do you think is advisable for me and please explain how the

whole bonds and share stuff works.

Investors Forum

Thanks for the interest. The basic rule is that you start with 10 percent of your income. Start by opening a savings account with a bank, and decide to invest 10 percent of all incomes every month. Discipline yourself not to touch the savings even when you are broke. When you have up to N5000 in savings, look for a mutual fund and invest the N5000. Continue to save 10 percent, and invest 5000 in the mutual fund. If you do this for 5 years, you would be surprised at how much you would have accumulated.  With respect to bonds and shares, I will send you past articles on this topic.

Reader

Thanks for the information I hope to get the past articles. Sir, can you give me a short list of mutual funds I can invest in Nigeria then I’ll do research. Do hope to get a reply thanks

Investors Forum

You can obtain the list from the website of Securities and Exchange Commission. 

Reader

Please I am a regular reader of Vanguard Newspaper. You talked about investment, please is Mutual funds investment better than fixed deposit? I need your reply.

Investors Forum

It depends on the purpose for the investment. If it is money you may need at anytime within the next two or three months, fixed deposit is advisable. But if it is money you want to save and build up over a period of time, a mutual fund is preferable.

Reader

Please sir, my friend makes a fixed deposit with a bank (name of bank withheld) with N400, 000 for 90 days at 8per cent per annum. Please can you calculate for us the amount he will get as interest at end of the 90 days.

Investors Forum

Ask the bank to tell you what the interest would be at the end of the period. It actually should be 8 percent of 400,000 divided by 365 days multiplied by 90 days

Reader

Although investment is good but still many people like me lack the basic knowledge of investment. I want to acquire assets and I know this is not an overnight success.  What I want to know is, is it really important to invest without financial education and just jump into the world of investment?

I have read few books. Some of the ways investors invest is usually secured but for our dear country Nigeria what are the real basis of investment? What do we need to know before we invest? Are treasury bills, mutual funds, bonds really in operation in Nigeria? Please elucidate these for me. And besides, where can I attend classes for investors.

Investors Forum

Yes they are real. You don’t need to attend any class for lectures. Just read newspapers, magazines and books. Then ask questions or ask for advice on any specific step you want to take.