When you think of stock investments, what comes to your mind? Something highly risky, right?
You may have heard stories of people losing money in the stock market, and you’re not quite sure if it’s for you. But what if I told you there’s a way to invest in stocks with minimal risk, especially in Nigeria? In fact, with the right approach, you can grow your wealth steadily without constantly worrying about market fluctuations or losing your hard-earned money.
Well, in this blog, I will show you some investments with low risk in Nigeria. Make sure you read till the end.
What are Low Risk Investments?
Low-risk investments are financial instruments that offer relatively stable returns with minimal potential for losses, making them suitable for conservative investors or those seeking predictable income.
Why Choose Low-Risk Investments?
Risk is part of investing, but you don’t always need to take big chances to make a return. Maybe you’re not comfortable with losing money or you’re just starting out in investing, it’s more important to protect your capital than to see fast growth.
Whatever the reason, low-risk investments are ideal for anyone looking to grow their money steadily, without too much worry. These types of investments focus on preserving your capital while still allowing it to earn interest or returns over time. It’s about balancing safety with steady growth. Now, let’s get into how you can make that happen in Nigeria.
Types of Investment with Low Risk in Nigeria
1. Fixed Deposits
Fixed deposits are one of the safest investment options available in Nigeria. This type of investment involves putting your money in a fixed-term account with a bank, where it earns interest over time. With this low-risk investment, your capital is not exposed to market fluctuations.
The “Earn by Trove” feature on the Trove app is a fixed-income investment option that allows you to earn interest on your idle cash with zero risk. It offers two options for saving: in naira with an interest rate of up to 20% per annum, or in dollars at up to 5.5% per annum.
This feature is perfect for individuals looking to grow their wealth securely without worrying about market volatility. Simply lock in your funds for a chosen duration (3 to 12 months) and enjoy guaranteed returns.
For beginners or even seasoned investors who are tired of market uncertainties, Earn by Trove offers a safe way to grow your money.
Unlike traditional investments that fluctuate based on market trends, Earn by Trove shields you from those risks while still offering competitive returns. The funds you invest are channeled into secured assets, ensuring the safety of your capital.
2. Federal Government Bonds
Another safe option for low-risk investment in Nigeria is government bonds. Bonds are simply loans that you give to the government, and in return, they pay you an interest.
The Nigerian government issues bonds to fund various projects, and they are considered one of the safest investment vehicles because the risk of the government defaulting on its debt is extremely low.
Federal Government Bonds in Nigeria offer decent returns over a fixed period. For someone looking for a long-term investment that’s low risk and offers regular interest payments, bonds could be the right fit.
Why It Works:
- Backed by the government, making it a very secure option
- Offers regular interest income
- Ideal for long-term, low-risk investments
However, government bonds are less liquid, meaning if you need access to your money before the maturity date, you might face some challenges. But if you’re patient, this can be a great way to earn steady returns.
3. Treasury Bills
These are short-term debt instruments issued by the Central Bank of Nigeria. They are a low-risk investment because they are backed by the government, similar to federal bonds but with shorter maturity periods—ranging from 91 to 364 days.
The beauty of treasury bills is that they are sold at a discount, and you earn the full face value upon maturity. Therefore, it can be an option for short-term investors who want quick returns. Short-term investment options for quick returns. They are available through most Nigerian banks and are easy to purchase
4. Money Market funds
Money market funds are another low-risk investment option that is popular in Nigeria. A money market fund pools money from various investors to invest in low-risk securities like treasury bills, commercial papers, and certificates of deposit.
This market fund gives you access to a variety of low-risk investments with professional management. You don’t need to know how each instrument works because fund managers take care of that for you. All you need to do is invest, and the fund managers handle the rest.
Money market funds are ideal for people who want to preserve their capital while still earning returns higher than a savings account would offer. Plus, they give you flexibility—you can usually withdraw your money quickly if needed.
Read Also: Types of Stock Options
Conclusion
There are many ways to grow your money safely; fixed deposits, federal government bonds, treasury bills, or a more modern option like Earn by Trove -This feature is designed to give you the peace of mind that comes with knowing your money is safe. It’s one of the easiest ways to start investing without fear of losing your capital.
The key is to start where you’re comfortable. If low risk is what you’re after, Trove Finance has built a platform to support you in your investment journey. Through the Trove app, you can manage your investments and track your returns all in one place, ensuring that you have full control over your financial future.
So, what are you waiting for? Download the Trove app today and explore the world of low-risk investment opportunities.
