If you’ve heard anything about investment, you have probably heard the saying that “High risk, yields high returns, and low-risk yields low returns” While this is generally true, in our economic climate there are unique opportunities to invest in low-risk investments that yield good returns, and we’re going to talk about it.

These assets are important to building a diversified portfolio due to their low-risk nature, and they also have the added benefit of giving you higher-than-expected returns on your money. Here are a few low-risk investments that could give you good returns and help with your wealth management:

Fixed Income – Low-risk, longer tenures & better returns 

Fixed income investments are usually seen as low-risk, and even guaranteed, and as such can be insured and guaranteed by the government to protect investors.

In the not-so-recent past, they yielded low returns and were used mainly for capital preservation, but because of the massive rise in inflation over the years, the CBN mandated an increase in interest rates to encourage saving, which has greatly increased yield from Fixed income instruments

This provides an exciting opportunity to clever investors, to invest in Fixed Income instruments like our Fixed Savings – which ranges from 30 days to 365 days, is insured by the NDIC and gives up to 18% p.a.

High-Interest Online accounts

Asides from fixed income investments like our Fixed Savings, our commitment to making your money do more for you have made us increase interest rates on savings accounts like RenFlex & Smart Goal, with 10% interest p.a.

This way, you can transact, save and spend, all while earning good interest on your account, and being protected, as all our savings accounts are insured by the NDIC.

Accessible savings with high-interest 

Although our focus in the article was to find low-risk “investments” with good returns, today, there are also hybrid savings products you can explore with similar low-risk, good interest and more liquidity than you would find with Fixed income investment instruments. A great example of this would be our RenFlex Savings, which earns you 10% per annum, allows you to deposit money whenever and wherever you want, and allows you to withdraw your funds if you need it without any interest penalties. 

Bonds

Bonds can be best described as “long-term fixed-income instruments” for investors. They range from anything over 1 year to infinity (that’s right).

They are usually issued by governments and corporations, and so, they have different levels of risk, depending on the ratings that reputable rating agencies provide them. These bonds, once issued by the governments and corporations are then listed and sold on secondary exchanges that can be accessed by all. 

The benefits of investing in bonds are the high, fixed returns you could enjoy for years if you invest in the right one and the security they offer in keeping your money safe. The disadvantage, however, is the high cost of entry for the average investor. 

If you’re looking at investing in Bonds, you’ll need to make sure you have hundreds of thousands of Naira, or even millions to be able to invest in them.

For short or long-term investment options that are low-risk and provide good returns, you can invest in Fixed Savings, RenFlex or Smart Goal by clicking here