Secure your investments with GDC Sacco
As an investor, you have a lot of options for where to put your money. If you’re young, you have possibly decades to make up for risky investment decisions.
It’s more important to keep your money safe and grow it at a slower, but more reliable rate. Below are types of investments you might consider for long-term growth
- Stocks. A stock is an investment in a specific company. Companies sell shares of stock in their businesses to raise cash; investors can then buy and sell those shares among themselves. Stocks sometimes earn high returns, but also come with more risk than other investments.
- Bonds. Bonds are generally considered safer than stocks, but they also offer lower returns. When you purchase a bond, you’re allowing the bond issuer to borrow your money and pay you back with interest.
- Mutual funds. Mutual funds allow investors to purchase a large number of investments in a single transaction. How risky the mutual fund is will depend on the investments within the fund.
- Index funds. The benefit of index funds is that they tend to cost less because they don’t have that active manager on the payroll. The risk associated with an index fund will depend on the investments within the fund.
- Exchange-traded funds. Like index funds, they tend to be cheaper than mutual funds because they are not actively managed. The major difference between index funds and ETFs is how ETFs are purchased.
Rules for investing
Making money through investing requires researching and evaluating different investments. Being able to see the difference between an investment and a purchase is an essential first step.
- Know your worth before you begin. To reach the finishing line, you must first know where the race begins. The best way to do this is by drawing up a list of your assets and liabilities. Once you have figured out where you stand, find out your attitude towards investing.
- Do not invest and forget. Don’t think your work is done after you make an investment. You need to monitor and review your investments and take corrective measures if they go off the track.
- Be prepared for a financial emergency. Will you be able to manage your finances if you lose your job today? Financial planners advise that one should have a buffer fund to take care of a financial emergency.
- Give precedence to retirement savings. Before you pour money into a child plan, make sure your retirement savings target has been met. Retirement planning should be your first and most important financial goal.
At GDC Sacco we are here to help you learn more on how you can invest and secure your money. We are located at Githunguri, Nairobi.
Talk to us 020-2015366/ 0723-400611 if you have any questions on investments. Visit our website for more info for more details on what we do.
