Opportunity To Invest In Bonds In A Bearish Market

In every adversity, there is an equivalent seed of opportunity. If you have been following events in the Nigerian stock market of recent, you will discover that things have been getting irritable in terms of crashing price of equities.
Such emotional event should be positively channeled to learning new investment outlets so that on the long run, you will still keep making your money to work hard for you. That is the basic pricinple of investing for riches.

There is opportunity to invest in Government bonds in the Nigerian stock market as more state governments are bringing the finance of their long term projects to the stock market.

What Are Bonds?
These are debt instruments issued through the primary market. It is a public offer created by government for the investing public. Government uses it to finance developmental projects. Instead of borrowing money from the banks, government simply turn to the public to borrow long term funds. Government issue papers called bonds to the investing public with a promise to pay certain percentage as interest till the duration of the bonds.

Fact File About Bonds
1. Bonds provide opportunity for investors to build pension fund or life insurance.

2. Bonds can be traded on the stock exchange

3. Bonds can be assessed both in the primary and secondary market

4. Government bonds are risk-free bonds

5. There is no tax charge on bonds

6. Yearly dividend is guaranteed till the duration of the bond

7. You get the full capital invested plus interest at the end of the bond


Lagos State Bond Window Of Opportunity
The Lagos state Governement floated another bond which you can still subscribe to now before submission. The bond is a N50 billion bond with 13% interest per annum. You will be paid twice a year.

Other Opportunities
Kwara State and Imo State are also getting prepared to float developmental bonds which you can invest in.

Instead of crying over the crashing price of stocks in equities, wisely maximize the investment opportunities in bonds now in issue. It is a sure strategy for investment success and education.