{"id":1194,"date":"2022-05-30T15:00:00","date_gmt":"2022-05-30T14:00:00","guid":{"rendered":"https:\/\/cowrywise.com\/blog\/?p=1194"},"modified":"2023-03-12T10:52:36","modified_gmt":"2023-03-12T09:52:36","slug":"types-investments-nigeria","status":"publish","type":"post","link":"https:\/\/cowrywise.com\/blog\/types-investments-nigeria\/","title":{"rendered":"Types of Investments in Nigeria"},"content":{"rendered":"\n

Whether you’re a young person just starting to save or an older individual looking to supplement their retirement income, there are many types of investments that it can be difficult to know where to start. This guide explains some common ones where you can begin to make your first investment.<\/p>\n\n\n\n

8 types of investments<\/h2>\n\n\n\n
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  1. Stocks and equity<\/a><\/li>\n\n\n\n
  2. Bonds and fixed income<\/a><\/li>\n\n\n\n
  3. Mutual funds<\/a><\/li>\n\n\n\n
  4. Exchange-traded funds<\/a><\/li>\n\n\n\n
  5. Cash and cash equivalents<\/a><\/li>\n\n\n\n
  6. Real estate<\/a><\/li>\n\n\n\n
  7. Commodities<\/a><\/li>\n\n\n\n
  8. Gold and other precious metals<\/a><\/li>\n<\/ol>\n\n\n\n

    1. Stocks and equity<\/strong><\/h2>\n\n\n\n

    A stock is a share of ownership in a company. When you buy a stock, you buy shares from the company and become an owner\u2014you own part of the company!<\/p>\n\n\n\n

    Unlike with bonds and other fixed-income securities<\/a>, when you invest in stocks, your investment can increase or decrease in value depending on how well the company does. The value of a stock is called its price per share (or just \u201cstock price\u201d). If you owned 1 million shares at $150 per share, then your total holding would be worth $150 million dollars even if no new investors were buying or selling shares. That’s why stocks are also called “equity”. <\/p>\n\n\n\n

    Learn more about how to invest in stocks<\/a>. <\/p>\n\n\n\n

    2. Bonds and fixed income<\/strong><\/h2>\n\n\n\n

    Bonds are loans to governments and corporations. The borrower pays interest (the coupon) to the lender on a regular basis, typically every six months or annually. Bonds have a fixed interest rate and maturity date. For example, if you buy a bond with a 10-year maturity at 4%, it will pay 4% interest until the bond matures in 10 years.<\/p>\n\n\n\n

    Bonds are good for investors who want steady returns over long periods of time; they’re also good for diversifying portfolios<\/a> because their value doesn’t fluctuate as much as stocks do. When thinking about investing in bonds, keep in mind that longer-term ones are typically riskier than short-term ones because there’s more time for interest rates to change. <\/p>\n\n\n\n

    Learn more about how to invest in bonds<\/a>.<\/p>\n\n\n\n

    3. Mutual funds<\/strong><\/h2>\n\n\n\n

    Mutual funds are a type of investment where a professional investment manager pools money from many investors and invests it in stocks, bonds, cash or other assets. They can be used to invest in stocks, bonds and other securities by pooling the money together and buying those assets directly.<\/p>\n\n\n\n

    Mutual funds provide several advantages over direct investing:<\/p>\n\n\n\n