For the past few months, we’ve been talking about investments and how it’s important for women to begin their investment journeys. Moreso, we’ve addressed the need for women to do more than keep money locked up in their Bank accounts or tied up in a wrapper at home. Money grows, and while it’s important to state the principles surrounding this, it’s even better to hear from young Nigerians who’ve done it. 

In this article, five Nigerians tell us how they started their investment journeys and what they look for before taking the risk. 

1. “I invest in Companies whose Products or Services I use”- Chima*, 27

I started investing about five years ago because I was tired of what my savings were doing for me. Which was nothing. I also wanted to build financial discipline. Before I started investing, I spoke to a few people who I knew were familiar with the game and built a checklist. My investment portfolio consists mainly of stocks. I try to invest in companies that I use their products or services, or the ones that have transparent business models. So, banks, for example and consumer companies like Presco and Nigeria Breweries. 

I use three different apps to invest. My first choice is InvestNaija, but that’s primarily for Nigerian stocks. I also use their Paramount Equity Fund, which invests mostly in stocks. I think I’d recommend that for new investors who don’t want to jump into the risk of things

My other two apps are Trove and Bamboo; they provide access to both domestic and foreign stocks, so the spread is fair. Other advice I’d give would be to stay consistent, and under what it is they’re investing it. Also, use money you can afford to lose and stick to the cost-averaging strategy. That simply means consistent funding or buying of stocks, maybe monthly or so. If you’re prioritising shares, you buy more when the price is low and less when it’s higher. 

2. “I started investing because I was Hungry for Success”- Leke*, 29

I started investing because I was hungry for success and more money, and this was about three years ago. When it comes to investment instruments, I try to look for the ones with less risk but guaranteed rewards. All the applications I use have access to foreign stocks, but I mostly use Robinhood. 

For new investors, I think it’s important to take everything seasoned investors say seriously. Do your research, get company fundamentals, etc. I’d also advise reviewing your portfolio often, but not too often that you give yourself a heart attack. Your returns won’t always be great, but they will be consistent, or as consistent as you’re involved in the process. I’ve been doing this for three years, and the most I’ve made is ₦500,000. Just take your time and stay hungry, or get hungry. 

3. “I’ve made about $145,000” – Chinedu*, 31 

My investment journey actually started with a scam. I got a call from a broker I registered with back in 2013 to invest because the dollar was cheap. I funded my account with $200, and in a week, it grew to $250. When I was ready to withdraw my funds, I didn’t have access, then I realised I’d been scammed. That was when I decided to take things into my own hands. So, my motivation came from wanting financial freedom and getting scammed. 

I mainly invest in equities (stocks). The idea of owning part of a company that will likely beat inflation and deliver returns is great. Then crypto, because well, it’s crypto. But that one is very high-risk. Then I also like to invest in precious metals for balance. Something to keep my portfolio stable when everything else is going mad. My top investment banks currently are Chapel Hill Denham and Cardinal Stone. They’re both solid. I’ve also been looking at Zrosk, too. My go-to strategy is technical analysis. I like to look at the data and math of markets. Trends and forecasts help me determine where to put my money. I’ve made about $145,000 from investing, and that’s not cumulative. Just how much I’ve gotten at once. 

My advice for new investors will be to determine why they’re investing. That’ll help in knowing how much risk they can take on. Also, look at the data. It matters more than we think. 

4. “I Started investing with ₦150,000 in Equities”- Daniella*, 30

I only started investing last November, I think. My motivation came from not wanting to feel left out. I’m very bad with my finances, and it seemed like everyone was getting it right. I started small, though, with ₦150,000 with equities and ₦100,000 with mutual funds. 

The apps I use are InvestNaija and Bamboo. I’m not dabbling in foreign stocks yet. So, I use the former for mutual funds from CHD and Bamboo for my equities. My portfolio has Aradel, Okomu Oil, MTN and Dangote Cement. I try to think of commodities that are in demand and companies that have good PR, I guess. 

My advice for new investors will be to just get into it. Slow and steady wins the race. I’ve seen my investment in stocks go down to ₦143,000 and go up to ₦159,000 since I started. It’s so crazy. I try to check it out at least once a week, but I think I’ve gone down to about once in two weeks. Anyway, slow and steady wins the race. 

5. “I’ve made Returns 35x an Investment”- Sylvia*, 28

I discovered the stock market and began my investment journey through research. My motivation, honestly, came from not having enough money. I think being in the process has also made me realise that the most important thing is compounding. So, letting your interest returns grow on your principal.

I try to look for short-term investments with high yield, so I know that I’m not putting my money somewhere for a long time. Investments like this would usually also be high risk, but that’s just my speed. One time, I made returns worth 34x my initial capital on a high-risk investment. It was completely worth it for me.  

My trust aides are Trove, Bamboo, Stanbic IBTC Asset Management and GT Fund managers. I would advise new investors to take their time and not expect wealth immediately. Grow your capital and reinvest your interest. That’s the principle of compounding. Also, diversify your portfolio. 

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