5 investment options to consider as a young adult in Ghana

In a world where expenses rise faster than salaries, sitting idle is not an option. The old saying, “No food for a lazy man,” still holds true, especially when it comes to money.

The culture of saving and investing continues to be a grey area in this modern age. With unemployment rates soaring, many people neglect to make long-term financial decisions that could prepare them for rainy days.

Financial experts are encouraging young adults to take charge of their financial future.

Here are five practical investment options to help young adults in Ghana build wealth and avoid relying on “Inshallah and vibes.”:

1. Treasury Bills

Treasury Bills, popularly known as T-bills, are short-term investment products backed by the Bank of Ghana on behalf of the government. They are considered one of the safest forms of investment due to this government guarantee.

Funds are invested for a specified period, and requesting your money before the maturity date may attract a penalty. With as little as GH¢100.00, you can purchase T-bills with durations ranging from 91 to 182 days.

2. Mutual Funds

Mutual funds are investment vehicles that pool money from multiple investors to create a diversified portfolio that may include bonds, stocks, and other assets. These funds are managed by professional fund managers who make investment decisions on your behalf.

There are various types of mutual funds, including fixed income, equity, balanced, and sector-specific funds.

Based on your budget and financial goals, a professional can help you choose the most suitable option.

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3. Bonds and Stocks

Bonds are medium-term investment securities issued by the government and sold to individuals or companies to raise funds for a specified period at a fixed interest rate.

Bond maturity typically exceeds two years, and investors receive periodic interest payments in addition to the original face value of the bond.

With enough capital, you can also purchase shares from companies and earn dividends from their profits. However, stocks and shares are high-risk investments, so it’s advisable to engage professional brokers to guide your decisions.

4. Fixed Deposits

A Fixed Deposit (FD) is an investment account where funds are locked in for an agreed duration.

Investors enjoy higher interest rates than regular savings accounts, making FDs one of the most risk-free investment options available.

The investment period ranges from 30 to 365 days, and you can hold multiple FD accounts simultaneously.

5. Property Investment

Property investment is a long-term strategy that involves purchasing assets such as land or buildings to generate returns through renting, leasing, or resale.

This approach can be highly profitable and offers substantial returns over time.

SP/MA

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