Investing is a wealth-building technique, but it’s not only for the wealthy. Anyone can start investing, and various flexible investment opportunities make it easy to begin with small amounts, as you will see in this article.
To grow your wealth, you should invest your money. Lack of investments will make you miss out on opportunities to increase your financial worth. Here are a few ways you can invest with as little as 5,000 Kenyan Shillings:
- Equity Mutual Funds
An equity fund is a mutual fund that invests in stocks. It can be actively or passively managed. Equity funds offer you the opportunity to invest in the stock market without the burden of choosing stocks to invest in. Some companies invest on your behalf and on behalf of other Kenyans by gathering each and everyone’s funds and investing them in the stock market. An advantage of equity funds is that they can be liquidated in 2-4 days at the prevailing market prices. If you chose to invest in Equity mutual funds, ensure you can stay in them in the long-term to realize more profits.
- Money Market Funds
This fund invests in short-term debt securities for investors looking for a safe place for their funds. It is a great way to save your money while earning from it through interest. Instead of keeping your money in the bank, you can invest in money market funds and make money using your money which earns you interest through compound interest. You can invest in this through banks and insurance companies, among others.
- Bond Funds
Bond mutual funds allow you to put your money into a pool with other investors. Then, a professional invests that pool of money according to what they think the best opportunities are. Your money is exposed to both corporate and treasury bonds through bond funds, which are not available for the common mwananchi due to the high capital requirements. You can invest in this via Unit Trusts and Asset Management Companies.
- Personal Pension Plans
A pension plan is a retirement plan that requires an individual to contribute to a pool of funds set aside for their future benefit. This helps build generational wealth by removing the burden of taking care of you when older from your children. In addition, there are investment opportunities that allow you to contribute to your pension plan with as little as Ksh. 500.
- Side Hustle
With as little as Ksh 5,000, you can start a side hustle to help boost your income sources. Examples of these side hustles are: online thrift shops, buying equipment for content creation, food delivery, etc.
In conclusion, we have many viable investment opportunities at our disposal that require little capital. Take advantage of these opportunities to increase your sources of income and build wealth. Do not let fear hold you back, do your research and make your move!
Author: Tracy Muthoni G.
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