The Ghana Stock Exchange closed green during the week in focus on the back of appreciation in the share prices of TBL and MTNGH.
The market update of NIMED Capital Limited showed that TBL and MTNGH’s share prices appreciated by 10 per c…
THOUGHT OF THE WEEK
INVESTMENT JARGONS (PART 2)
1. Bond fund - A mutual fund that invests exclusively in bonds.
2. Bull market - Any market in which prices are advancing in an upward trend. In general, someone is bullish if they believe…
THOUGHT OF THE WEEK
INVESTMENT JARGONS (PART 1)
1. Annual report - The yearly audited record of a corporation or a mutual fund's condition and performance that is distributed to shareholders.
2. Annualized rate of return - The average…
THOUGHT OF THE WEEK
COLLECTIVE INVESTMENT SCHEME (PART2) TYPES OF COLLECTIVE INVESTMENT SCHEMES
Collective investment schemes can invest in shares, bonds, deposits and other investment classes. The fund managers select the investment…
THOUGHT OF THE WEEK
COLLECTIVE INVESTMENT SCHEME (PART1)
Collective investment Schemes (CIS), are pools of funds that are managed on behalf of investors by a professional fund manager. In CIS, your money is pooled together with that of…
THOUGHT OF THE WEEK
WHY FINANCIAL PLANNING IS KEY
In this New Year and beyond, one of the things that will help you to achieve your dreams is financial planning. Below are some of the few reasons why financial planning is important a…
THOUGHT OF THE WEEK
TIPS FOR FINANCIAL PLANNING
1. Start from the end- does starting from the end sound strange to you? In financial planning, you need to think about the end. This comes by looking at the vision of your life. Take ti…
FINANCIAL GOALS (PART 3)
HOW TO KEEP YOUR INCOME GREATER THAN YOUR EXPENSES
Living within your means is simple. When you take out your expenses from your income, what you earn must be a positive figure. If you happen to get a negative fi…
FINANCIAL GOALS (PART 1)
HOW TO ACHIVE FINANCIAL GOALS
Financial goals can be achieved by making plans that prioritizes your goals. You will also need to make an estimate of how much is needed and how long it will take. You will ther…
THOUGHT OF THE WEEK
FINANCIAL GOALS (PART 1)
These are the spending targets, savings and investments that you hope to achieve in a given period. The financial goals are usually determined by your stage of life. For example a person with …
HOW TO MAKE THE BEST OUT OF YOUR FINANCES DURING THE FESTIVE SEASON? (PART 2)
1. Make a Gift List and Check it twice: Your gift list should include all the people you plan to buy gifts for during the holidays, along with a specific amou…
How to pay off your debts before retirement
Some people go into retirement with huge debts and it becomes obvious that the higher the debts you pay in retirement the lesser the funds available to spend on other needs. Key debts people t…
THOUGHT OF THE WEEK
IS THERE A BEST TIME FOR ME TO RETIRE? (PART)
In deciding when to retire, there is the need to have an idea of what your expenses and income might be. This helps you to determine how close you are to retirement. As …
THOUGHT OF THE WEEK
Measuring Portfolio Investment Returns
The main reason for investing money is to receive some returns on amount invested funds. Measuring investment returns is not always a straight forward exercise as there are diffe…
THOUGHT OF THE WEEK
Managing Investment Portfolio
An investment portfolio is a set of financial assets owned by an investor. Financial assets that constitutes a portfolio may include stocks, bonds, mutual funds and cash. Investors aim to…
THOUGHT OF THE WEEK
INVESTING IN BONDS (PART 2)
Based on the issuer, there are four main categories of bonds issued to investors.
•Corporate bonds: These are bonds issued by corporate institutions to raise capital for their operations.…
THOUGHT OF THE WEEK
INVESTING IN BONDS (PART 1)
A bond represents a loan made by an investor to a borrower. The borrower is typically a corporate or government institution. Governments borrow from investors through treasury bonds while c…
THOUGHT OF THE WEEK
UNDERSTANDING THE STOCK MARKET (PART 3)
The Stock Market is made up of different participants who perform various roles to make the market run effectively. The players on the Ghana Stock Exchange
include the followin…
THOUGHT OF THE WEEK
UNDERSTANDING THE STOCK MARKET (PART 2)
The stock market maintains market and sector indicators that measure the performance of the stocks listed on the market. The Ghana stock exchange maintains two official indicato…
THOUGHT OF THE WEEK
UNDERSTANDING ASSET CLASSES AND INVESTMENT RISK (PART 3)
? Stocks: A stock represent part ownership of a company. Stocks allows investors to share in the company’s success through increase in share prices and divi…
THOUGHT OF THE WEEK
UNDERSTANDING ASSET CLASSES AND INVESTMENT RISK (PART 2)
? Fixed Term Deposit: Fixed term deposits are issued by commercial banks for a defined tenor and interest rate. Subscribers are only able to redeem fixed term…
THOUGHT OF THE WEEK
UNDERSTANDING ASSET CLASSES AND INVESTMENT RISK (PART 1)
Recent developments in the investment sector has highlighted the need for investors to understand the basics of different asset classes and risk associated wi…
THOUGHT OF THE WEEK
TIPS FOR BUSINESS FINANCING (PART 3)
SOURCES OF FUNDING FOR A BUSINESS EXTERNAL SOURCES
The external sources for business financing are a. Loan Capital: there are several forms of loan capital but the most popular …
THOUGHT OF THE WEEK
TIPS FOR BUSINESS FINANCING (PART 2)
SOURCES OF FUNDING FOR A BUSINESS
A Business needs to categorize their sources of finance, these should be divided into internal (sources within the business), and external (sou…
THOUGHT OF THE WEEK
TIPS FOR BUSINESS FINANCING (PART 1)
1. BEFORE SEEKING FINANCING
There is the need for careful planning before considering business financing. The business owner will need to make the following
decisions:
i. How mu…
THOUGHT OF THE WEEK
INVESTMENT RISK (PART 2)
5. REINVESTMENT RISK
This is the risk of losing higher returns on the principal or income due to the low rate of interests on the market. For example, you have a bond with a 10% return th…
THOUGHT OF THE WEEK
INVESTMENT RISK (PART 1)
This is the probability or uncertainty of losses rather than expected returns from investment due to a fall in the fair prices of securities such as bonds, stocks etc. Every investment has…
THOUGHT OF THE WEEK
FOUR REASONS TO INVEST NOW (PART 2)
2. When you invest now, you need to invest less money to enjoy a greater payoff Now let us imagine two investors who started investing for their retirement at different times. One o…
THOUGHT OF THE WEEK
FOUR REASONS TO INVEST NOW (PART 1)
After growing your emergency fund, which you can rely on in times of emergency, you have enough money and time to grow your investments uninterrupted, which offers a high growth p…
THOUGHT OF THE WEEK
DO’S AND DON’TS OF INVESTMENTS (PART 3)
DON’T’S
3. Don’t take unnecessary risks Though risk and reward are directly correlated, your risk reward should always be balanced. Safeguarding your money is just as importa…
THOUGHT OF THE WEEK
DO’S AND DON’TS OF INVESTMENTS (PART 2) DO’S
4. Do invest small rather than not at all.
Before you do any investing, your first financial priority should be to accumulate some amount of emergency savings. That is how…
THOUGHT OF THE WEEK
INVESTMENT RISK (PART 1)
This is the probability or uncertainty of losses rather than expected returns from investment due to a fall in the fair prices of securities such as bonds, stocks etc. Every investment is e…
THOUGHT OF THE WEEK
COLLECTIVE INVESTMENT SCHEMES (PART 2)
Types of Collective Investment Schemes Collective investment schemes can invest in shares, bonds, deposits and other investment classes. The fund managers select the investments …
THOUGHT OF THE WEEK
COLLECTIVE INVESTMENT SCHEME (PART 1)
Collective investment Schemes (CIS), are pools of funds that are managed on behalf of investors by a professional fund manager. In CIS, your money is pooled together with that of …
INVESTMENT JARGONS AND WHAT THEY MEAN (PART 4) RETURN
A return, also known as a financial return, is the money made or lost on an investment over some period of time. For example The return earned during a one-month period is known as m…
INVESTMENT JARGONS AND WHAT THEY MEAN (PART 3)
CAPITAL LOSS
The amount by which the proceeds from a sale of a security are less than its purchase price.
For example:
If Kwame again bought 1,000 Unilever shares on 4th January 2021 at …
Indigenous investment firm and fund manager, NIMED Capital Limited officially launched an initial public offering (IPO) to raise funds for its Unit Trust.
The NIMED Lifetime Unit Trust is described in its prospectus as an open-ended fun…
THOUGHT OF THE WEEK
A guide to fixed income investing (Part 2)
Fixed income investments have lower risks than stocks though there are risks associated with fixed income investments. A few of these risks are:
Default risk- this is the ri…
THOUGHT OF THE WEEK
A guide to Fixed Income Investing (Part 1)
As discussed previously, fixed income investments are debt securities that pay investors interests at a fixed rate for a specific period of time. They include certificates …
Understanding Asset Classes and Investment Risk (Part 2).
• Collective Investment Scheme: Collective Investment Scheme (CIS) is an investment type where two or more investors pool funds to invest.
A collective investment scheme is manage…
Understanding Asset Classes and Investment Risk (Part 1).
Recent developments in Ghana’s investment sector has heightened the need for investors to understand the basics of asset classes and risk associated with each asset class. The fi…
THOUGHT OF THE WEEK
How to Analyze a Stock before Investing.
Stock is one major asset class for investors who seek to grow their investment. Investors rely on several sources for information before making a decision to buy a particular…
THOUGHT OF THE WEEK
Why now is the Best Time to Establish Emergency Fund.
Building an emergency fund is the first step in financial planning. The current coronavirus pandemic has brought to bear the need for every individual have an em…
Creating and Growing an Emergency Fund (Part 2).
Managing an emergency fund requires great discipline. Before setting up an emergency fund, there is the need to set goals on how and when the fund shall be used. The fund must only be used …
Creating and Growing Emergency Fund.
Emergency fund is money set aside in a separate account to be used in case of true emergency from unexpected bills to job loss in order to protect financial wellbeing. Recent financials challenges as a…
Investing in Collective Investment Schemes.
Collective Investment Schemes (CIS) are pools of investor funds that are managed on their behalf by a professional fund manager. These schemes
have clearly spelt out investment objectives which…
The Importance of Dividends to Investors.
Dividends are cash distributions that companies pay out from their earnings to shareholders. Payment of dividend sends positive signal about the financial health of the company to investors. A c…
Managing Investment Portfolio.
An investment portfolio is a set of financial assets owned by an investor. Financial assets that constitutes a portfolio may include stocks, bonds,
mutual funds and cash. Investors aim to achieve returns by…
Investing in Bonds (PART 2).
Based on the issuer, there are four main categories of bonds issued to investors.
? Corporate bonds: These are bonds issued by corporate institutions to raise capital for their operations. Some corporate ins…
Investing in Bonds (PART 1).
A bond represents a loan made by an investor to a borrower. The borrower is typically government or corporate institution. Governments borrow from investors through treasury bonds while corporate institution…
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