3 reasons why you should invest in equities now
It is no doubt that with the outbreak of the COVID-19 pandemic, the Nigerian equities market has experienced a decline in the last couple of months, especially during the lockdown period. The market has seen foreign investors pull out and a lot of stock prices drop but that shouldn’t deter an investor looking to invest in the Nigerian Stock Exchange. If there is one thing any good investor will tell you it is; investing in the stock market is all about making money over the long term.
These are 3 reasons why you should invest in the equities right now.
Buying the Dip
When any stock market takes a nosedive as we have seen with the outbreak of the COVID-19 pandemic, it doesn’t necessarily mean doom or gloom, especially for long term investors. Buying the dip is a basic investment principle that simply means ‘buy low and sell high’ but with a well-informed approach. It’s important you do your research on the company to know how their shares have performed over the years. Most companies have great shares that are profitable and are just affected by the temporary crisis but there is every likelihood that their stocks will rise in the future.
History has taught us stock always grows
People invest in stocks because over the last 100 years, stocks have tended to rise. Of course, there have been times where it crashes and periods where they have performed badly but overall, the Nigerian stock market has experienced steady growth as the economy has grown. While there have been a lot of ups and downs along the way, the market has generally moved upwards. And if you bought stocks and held them for 30, 40, or even 50 years, you would’ve made a lot of money. Many people invest in stocks simply because the odds are in their favour and that over time, the market will go up and earn them money.
Invest in Stocks for Diversification
When you purchase stocks, it allows you to diversify your money and this is a great way to create passive income for yourself. To diversify means the more ways you have to make money, the less you’re at risk from getting in financial trouble if any of your methods gets disrupted.
For example, let’s say you have invested in Treasury Bills and Eurobonds and you have both a 9-5 and a side hustle; if you lose any of these sources of income, you would be able to depend on the other one because you have an option. This same principle applies to investing. When you diversify your investment portfolio, you have multiple streams of income and can depend on other streams if market forces hinders any of your streams from yielding your desired interest at a particular time.
The best way to start investing in stock right now is with the i-invest App. The i-invest App is an investment application that enables you to securely purchase and monitor your Equity investments from your mobile device, anywhere and anytime.
Asides from investing in Equities from top traded Nigerian companies, you also get to choose from two other options which are Treasury Bills issued by the Federal Government making them low-risk and Eurobonds issued by foreign governments, companies, and international organizations. This gives you the option of diversifying your investment portfolio in one app.
Equities have always been a great investment option as top traded companies have been growing for years and will still grow in the future. It is a good means of setting money aside for the future and for family. Whether you are just getting started or want to improve your skills, i-invest is the way to go as it guides all investors irrespective of their level of skills.
The I-invest app is safe and secure and is available for download on iOS and Google Play stores. You can learn more about i-invest on https://i-investng.com/.