How Best to Smartly Manage, Grow Your Wealth

Beyond investing to become a business owner, many smart investment opportunities abound in the country today. With the bad economic climate taking a toll on businesses, smart investing to build, retain and grow wealth has become the alternative for many, though it’s usually very daunting for beginners.

Apart from not knowing how to go about it, it is unapproachable if you don’t understand the options available to invest in and grow your fortune. We have chosen in this piece to take you through some possibilities for consideration in the quest to safely and optimally grow your wealth, hoping that as expected you will find them useful.

FGN Bonds

Usually, long-term instruments issued by the Debt Management Office on behalf of the Federal Government of Nigeria (FGN), Federal Government (FGN) Bonds are issued as lending instruments to the FGN by buyers for a specified period of time and it pays the principal and agreed on interest as and when due. With no default risk attached as it were, they present investors willing to invest long term at interests paid bi-annually (twice yearly).

While bonds are accessible through primary licensed dealers, it is advised that before investing, you get accustomed to the prevailing rate, maturity, payment dates, and expected returns to provide you with an informed decision.

Treasury Bills

Treasury bills (T-bills) are risk-free, short-term investment instruments that are usually issued by the Federal Government through the Central Bank of Nigeria (CBN). A device by which government raises funds from individuals and organizations, T-bills are among the safest investments of attractive returns, being backed by the complete faith and credit of the Federal Government. Added to that is the fact that the longer the maturity date, the higher the interest rate to an investor, and that notwithstanding, T-bills give a lower rate of return compared to other forms of investments, they offer safe and predictable profit, making them a good choice for long-term investments in the portfolio.

It’s significant, however, an investor takes note of the prevailing rate and the expected return upon maturity when investing on T-bills. Also, it should be noted that selling before maturity opens an investor to incurring a loss determined by the prevailing market value.

Fixed Deposit

Fixed Deposits are funds kept for a specified period as short-term investments that guarantee fixed interest rates. Deposits are usually for a 30-day minimum tenor (period) and a 365-day maximum tenor after which the principal and interest amount earned is paid to the depositor. Also tenable as security for cash-backed loans, it is most ideal that Fixed Deposit investments are diversified and spread across banks to strike the right balance between risk and returns. Note that if a Fixed Deposit investment is terminated before maturity, total accrued interest not earned is forfeited and only the portion of the interest earned why money was held is paid.

Commercial Paper

A short-term unsecured debt instrument issued by financial institutions and large corporations with high credit ratings, a Commercial Paper (CP), being a short-term instrument, matures within 270 days. They are issued at a discount and interest is paid upfront. Being more suitable for risk tolerance, it is advised that before investing in it, due diligence on the issuing company, extending from an evaluation of its credit rating, brand reputation to the experience of the management team is carried out and its risk of default is noted.

While CPs offer a return on investment in 270 days or less and are paid at maturity and not periodically as with the FGN bonds and other similar debt securities, it’s appropriate to consider all other investment options before investing in CP.


Eurobonds are financial instruments denominated in a currency other than of the issuer. For instance, a Nigerian Eurobond is issued by Nigeria in U.S Dollars. Notwithstanding the name, Eurobonds are not necessarily denominated in Euros and could take different forms. Usually issued by governments or corporate institutions, they are highly liquid as they are easily converted to cash, a key benefit of the investment.

With Eurobonds coming as government and corporate issuing, which to invest on is best left to the consideration of the investor, but note that corporate-issued Eurobonds offer higher interest than government-issued ones but higher risk. Investing in Eurobonds, like every other investment, should be clearly thought out, reviewed and the risk profile of any Eurobond to be bought thoroughly understood.

Generally, wealth management is a personal thing as there’s no one-size-fits-all approach to it. It requires that you have the right knowledge and information, beginning with a clear picture of your financial goals and understanding of your risk tolerance. Follow through with the diversification of your portfolio and the mix to reflect your risk tolerance without neglecting good expert recommendations, just as you maintain absolute disdain for “hot tips” from unverified sources. Though this may seem complicated, a good partner will bring in ease and excitement.

The digital investment app, M36, stands to further boost your investment confidence and provide you with a wide range of investment products, including those highlighted above, and support by professional financial advisors to equip you with sound investment choices that would suit your needs.

Download the M36 App from the Google Play Store or the App store and experience Value for Money, managing, retaining, and growing your wealth.

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