the best investment is the one that yields good returns. hence if you want to invest but don’t know where to invest, then you are at the right place because this guide will consider Where can you invest money to get good returns in Ghana. but first, let consider what is investment
What is investment
An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth. An investment always concerns the outlay of some asset today—time, money, or effort—in hopes of a greater payoff in the future than what was originally put in.
The culture of saving and investment remains an area that is grey developing nations around the globe including Ghana. Due to the unemployment that is high as well as the meagre salaries of a lot of employees in Ghana, investments become a privilege for a little few people in the country.
But, in recent years, there has been a rise in education in the great things about assets and more Ghanaians, especially the youth, are participating in it.
Where can I invest money to get good returns in Ghana?
In an exclusive interview with Pulse Ghana, Chartered Investment Professional, Desmond Bredu, pointed 5 ways to invest your money in Ghana.
Find below the 5 ways to invest your money in Ghana and get good returns
1. Fixed deposits
Generally known as term deposits are quite simple as they employ the attention that is straightforward for calculating interest. What is very important is just a principal(the amount you want to invest), a given interest rate, a period that is defined. Eg. you’ll walk to bank XYZ to get a deposit that is fixed (principal) @ 14% for the year.
For fixed deposits, during the final end of the period, you obtain the 140ghs as interest utilising the formula [(Principal x Time x Rate)/365]. Thus you’re given 1,140 on maturity ie. Principal plus interest. The day that is actual for fixed deposits are our calendar year special.
2. Mutual Funds
A fund has shared a kind of investment that makes use of cash from the pool of investors to buy securities such as fixed deposits, equity, bills, bonds or other kinds of investment. An investment manager chooses how exactly to invest the amount of money, as well as for this he’s paid a cost, which originates from the funds within the fund. One best part about these opportunities is, it does not matter your contribution, everybody within the investment enjoys the return percentage-wise that is exactly the same. Demonstrably, the money returns will be different when you have 20k within the fund as compared to someone with 5k however in percentage terms both will earn the rate that is exactly the same.
It really is fundamentally device ownership in a company. Hence, anybody who buys becomes a component owner for the business and is entitled to rights that are certain all completely general public in a document called Prospectus.
4. Treasury Bills
Treasury bills/notes (T-Bills) are short-term money market instruments issued by the Bank of Ghana (BOG) on its account that is own or on behalf of the Government of Ghana (GOG). This is usually a method that is common by governments to borrow cash from residents for development purposes.
The different kinds of bills/bonds noted on the Ghanaian money market are as follows: 91-day Treasury Bill 182-day Treasury Bill 1 and 2-Year Treasury Notes 3 and 5-Year Bonds
A bond is really earnings that are fixed that represents financing made by an investor to a debtor (typically corporate or governmental). A relationship could possibly be thought of as an I.O.U. between the debtor and loan provider that features the important points associated with the loan and its own payments. Bonds are utilized by businesses, municipalities, states, and governments that are sovereign finance jobs and operations.
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