{"id":948,"date":"2017-03-28T15:03:27","date_gmt":"2017-03-28T13:03:27","guid":{"rendered":"https:\/\/www.namfisa.com.na\/educates\/?p=948"},"modified":"2025-07-18T08:50:33","modified_gmt":"2025-07-18T06:50:33","slug":"investment-products-part-i","status":"publish","type":"post","link":"https:\/\/www.namfisa.com.na\/educates\/investment-products-part-i\/","title":{"rendered":"Investment products Part I"},"content":{"rendered":"\t\t
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Introduction<\/h3><\/span><\/div>
Introduction\n\nWe all want our money to work for us; whether our money is in cash or cows or in any commodity that is easily tradable or not. Investors always have the same question or should have, \u201chow much can I earn from that investment\u201d?\n\nInvestments are mostly managed by investment managers registered with NAMFISA. Investment managers set up an investor\u2019s portfolio in such a way as to meet the investor\u2019s investment objective.\n\nA portfolio normally consists of different classes of assets.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What they are (investment products)<\/h3><\/span><\/div>
Investment products are those products that an investor would purchase with the expectation to earn a return.\n\nA wide variety of investment products exist, including, but not limited to bonds, equities , money market instruments such as treasury bills, negotiable certifi-cates of deposit (\u201cNCDs\u201d), Bankers\u2019 Acceptances (\u201cBAs\u201d) and investments in companies not listed on a stock exchange.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Understanding Your Investment Objectives<\/h3><\/span><\/div>
Before investing, one should be clear as to why you are investing and what your expectations are.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Capital Preservation<\/h3><\/span><\/div>
The aim is to invest with the intention of not losing the original capital, i.e., preserving the sum of money that you have invested. Assets that are generally less risky with lower returns are common investment types that investors choose when they want to preserve capital.\n\nInvestors approaching retirement age tend to prefer this investment choice because they have less time to recover from unpleasant market movements<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Capital Growth<\/h3><\/span><\/div>
The intention is to invest in assets (investment products) that would grow your capital and increase the market value of your original investment. Investors seeking to grow their capital tend to invest in products that offer higher returns.\n\nBecause of the high returns sought, the risk taken on is generally higher as well.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Income<\/h3><\/span><\/div>
This investment objective aims to provide the investor with a regular source of income.\n\nPlace money in cash investments\nInvest in bonds with higher interest payouts\nBuy shares that pay out steady dividends<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Liquidity<\/h3><\/span><\/div>

\n Investors who prioritize liquidity aim to convert their investments into cash quickly<\/strong>.\n<\/p>\n

Important considerations:<\/p>\n

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  • Check whether there is an active market with willing buyers<\/strong><\/li>\n
  • Properties<\/strong> are not easily turned into cash<\/li>\n
  • Unlisted investments<\/strong> or private company shares can be difficult to liquidate<\/li>\n<\/ul>\n\n\n
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    \"It\u2019s not whether you\u2019re right or wrong that\u2019s important, but how much money you make when you\u2019re right.\"\n\u2014 George Soros <\/p>\n<\/blockquote>\n\n

    Before investing, ask yourself: Why am I investing, and what do I want to achieve?<\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Other Considerations<\/h3><\/span><\/div>
    An investor should also take into consideration: <\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    • <\/span>time horizon<\/li>
    • <\/span>risk associated<\/li>
    • <\/span>the return of investment<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Time Horizon<\/h3><\/span><\/div>
      One should invest with a time horizon in mind. Time horizon refers to the number of years needed to achieve one\u2019s financial objectives.\n\nFor example, if you are 40 and investing for retirement, your time horizon is 20 years.\n\nYour time horizon is important because it influences the type of assets you should invest in.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      risk<\/h3><\/span><\/div>
      Risk is not just about losing the capital invested \u2014 it also includes the uncertainty of receiving your expected return.\n\nIf you are 20 years old and investing for retirement, you can afford to invest in riskier assets because you have time to recover from potential losses.\n\nHowever, if you do not have the time to recover from losses, you should avoid risky investments.\n\n\u201cIt\u2019s not whether you\u2019re right or wrong that\u2019s important, but how much money you make when you\u2019re right.\u201d\n\u2013 George Soros\n
      \n\nContribution by: NAMFISA Capital Markets Department\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Precautions<\/h3><\/span><\/div>
      Always avoid investments that offer high returns over a short period. (In most cases, if it sounds too good to be true, it probably is.)\nRemember: High return = High risk.\nAvoid being sweet-talked into investments you don\u2019t understand.\nAsk the hard questions. If you\u2019re in doubt, don\u2019t rush into a decision.\nIf you are unsure about a financial institution, contact NAMFISA.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      <\/h3><\/span><\/div>
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      Introduction Introduction We all want our money to work for us; whether our money is in cash or cows or in any commodity that is easily tradable or not. Investors<\/p>\n","protected":false},"author":1,"featured_media":949,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"footnotes":""},"categories":[427],"tags":[],"class_list":["post-948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-collective-investment-schemesunit-trusts"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/comments?post=948"}],"version-history":[{"count":12,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/948\/revisions"}],"predecessor-version":[{"id":35591,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/948\/revisions\/35591"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/media\/949"}],"wp:attachment":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/media?parent=948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/categories?post=948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/tags?post=948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}