Investment products Part I

All About Investment Products

We all want our money to work for us—whether it’s in cash, cattle, or commodities. The main question every investor should ask is: “How much can I earn from this investment?” Investment products are typically managed by licensed investment managers registered with NAMFISA. These managers help build a portfolio tailored to your goals, using a mix of asset classes.

Investment products are financial tools purchased with the expectation of earning a return. Common examples include:

1. Bonds
2. quities (shares)
3. Money market instruments (e.g. Treasury Bills, Negotiable Certificates of Deposit, Bankers’ Acceptances)
4. Unlisted investments (private companies not on a stock exchange)
Understanding Investment Objectives
Before investing, ask yourself: Why am I investing, and what do I want to achieve?
1. Capital Preservation
Goal: Keep your initial investment safe.
Suitable for: Those close to retirement or with low risk tolerance.

2. Capital Growth
Goal: Increase the value of your investment over time.
Suitable for: Long-term investors seeking higher returns, but willing to accept higher risk.

3. Income Generation
Goal: Earn regular income from interest or dividends.
Suitable for: Investors who need a steady cash flow.

4. Liquidity
Goal: Quickly convert investments into cash.
Suitable for: Those who may need quick access to funds.

"It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right." — George Soros
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