Let Your Money Appreciate

I  n our November 2016 issue, we told you about some of the instruments you could avail yourself of if you are looking to make your money appreciate. Remember that investing in those instruments has become a must for a brighter future and the faster you make up your mind and go in for them, the better. Here are some other investment avenues you can take advantage of.

These are investments in companies listed on the stock exchange. By buying shares, it means one has become a part owner of the company.
This type of investment is quite risky and returns are uncertain. They are usually for long term investors. Stocks in Ghana are traded on the Ghana Stock Exchange. Unlike in treasury bills and fixed deposits, investors earn dividends on their stocks instead of interests. The value of stocks could either appreciate or depreciate at the close of business. One would require a broker or an expert in the stock market to advice on which stocks to buy. One could also monitor the performance of the shares on the stock market. Some local radio stations also make listeners aware of the performance of stocks on the Ghana Stock Exchange during their news bulletins in the evenings. Some companies listed on the stock exchange include PZ Cussons, Guinness Ghana Breweries, Fan Milk, Cal Bank, GCB Bank and Benso Oil Palm Plantation.

    The mutual funds pool money from many investors and invest typically in securities such as stocks, bonds and short-term money market instruments.
    This type of investment is a professionally managed type of investment scheme. It is highly diversified and of high liquidity. Its returns are uncertain and have a bit of risk attached to it. Investors can start with relatively smaller amounts and top up as and when one wishes. Data Bank is one of the institutions popularly known for such instruments in the country.
    Examples of such instruments include EPACK, MFund, Gold Fund, SASS Fortune Fund and HFC Equity Fund.
    This is one of the new forms of investments people are currently engaging in. It simply involves buying foreign currencies when the exchange rates are low and selling them off for profits when exchange rates shoot up. Higher market demands on certain currencies like the US Dollar or Pound Sterling will push the exchange rates upward. This is a good time to sell. On the other hand, when demand falls, exchange rates fall. This is the best time for investors to buy and sell later when prices shoot up.
    Its returns are uncertain and it demands regular monitoring of the Forex market rates.

The Financial Term of the Month: Blind Trust

This is a trust in which the trustees have full discretion over the assets, and the trust beneficiaries theoretically have no knowledge of the holdings of the trust. The trustor initiates the trust and maintains the ability to terminate the trust, but otherwise exercises no control over the actions taken within the trust and receives no reports from the trustees while the blind trust is in force. Blind trusts are often used when a wealthy individual is elected to a political office where his investment holdings could potentially put him in a conflict of interest with a regulatory issue or other sensitive exercise of political power.


Credit Investopedia.com

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