Must Know Tips For Investing In Nigerian Stocks

 

As with all investments in stocks, the driving principle is the decline of cash value in the face of growing inflation. Investing in Nigerian stocks is one of several trading options for increasing the value of your capital. 

 

Nigeria has a great range of worthy investment opportunities, but the risks involved in these ventures can be minimized by following a few important tips regarding how to buy shares in Nigeria. 

 

These don’t centre only in the premier investment portfolios available but also involve the methods by which investments are made. Good practice always begins with thorough research into these aspects of the venture.

 

 

In 2020 Bloomberg cited Nigeria as the best equities market among 93 others worldwide. Though this status has since declined, stock trading in this country is still considered by pundits to offer very good opportunities.

 

These opportunities are best realized by appointing an online stockbroker with a proven track record and having the necessary accreditation. 

 

Your broker should be easily available to you and should have an active status with the Securities and Exchange Commission. Look out also for the kind of minimum investment required, and ensure that you are able to afford the package before committing yourself.

 

 

No investment venture is entirely risk free, but risk can be reduced by spreading your capital across a relatively safe range of stock purchases. The safest performers among Nigerian stocks are those related to the petroleum, whole grain, telecommunications and financial service provider sectors.

 

The most secure entry-level method is to invest in mutual funds which are administered by experienced professionals, and should deliver secure medium- to long-term results. 

 

But higher risk, more profitable ventures can also be accessed via a stockbroker investing across a relatively consistent spread of well performing stocks. The important thing is to avoid unwarranted or emotional choices, which amount only to gambling.

 

 

The following is a list of 10 stocks that come highly recommended by experienced brokers:

Before venturing on any choices, embark on a time of solid research involving not only the performances of various stocks but also factors such as political and social trends. Keep abreast of Nigerian news generally, with a keen focus on business conditions and legislation.