How To Invest Small and Reap Big

BY LEON

The last Champions League was a rich clubs affair. Big guns Manchester United and even fiercer one Barcelona (sorry Reds, but these guys were good!) were taking on each other. To play in their league, teams have to invest in billions of shillings in players. This alone keeps many good and deserving teams out of the Champions league as they cannot afford to fork out the money required. That is why Wigan cannot make a bid for Rooney or Christian Ronaldo. Messi? They can’t even think about making a bid for him.

This is the same logic that applies to investing. Premium stocks are simply too highly priced for many retail investors. This makes them only accessible to the big boys who have lot money to spend.

The most expensive stock in the Nairobi Stock Exchange for instance costs KSh300 a share. You need at least a million plus shillings just to invest in such a stock. And that would get you a minimal of 3,000 shares. You can use the change to buy the Christmas goat and some liquor for the wazee in the village.

Other investments like bonds also require huge capital to invest in. And woe onto you if you don’t know how the market works and you lose your money.

But hey, take heart, untie the goat and let it graze.  I am about to let you in a life changing secret. You don’t need the big money to play in the financial champions’ league.

You need to invest in British American unit trusts. Unit trusts are a collective investment scheme contributions that are pooled together to purchase different securities including equities (shares), bonds, cash, bank deposits etc.

It is like a chama where people pool their money together but with a unit trust, these monies are managed by professional fund managers and the chama members are investors like you and me who have invested in unit trusts. Instead of you putting your money in one stock or investment, our professionals invest the money for you in best performing shares, Treasury bills and bonds and other instruments.  You get to reap the benefits of growth in diversified investments.

Our unit trusts also allow you to either make lump sum payment at once or even monthly contributions.

To invest in unit trusts, you must identify a goal for investing, timeframe and your level of risk.  Benefits of Unit Trusts include:

  • Unit trusts provide potentially superior returns to fixed deposits over the longer term.
  • With a relatively small investment, a collective investment provides access to a broad spread of different shares and investments reducing your risks.
  • British-American Unit Trusts are managed by highly qualified investment managers and investment specialists
  • It has a cash withdrawal facility that  allows you to take regular withdrawals especially if you are investing for a specific regular reason like school fees
  • British-American unit trusts are flexible and easily accessible as you can sell all or part of your investment at any time.
  • A unit trust fund does not pay tax on its income, either from dividends or interest (tag your MP on this!).
  • Unit trusts are Safe and Transparent  as they are strictly controlled under  the Capital Markets Authority.

What are you waiting for? Contact a British American financial advisor and watch your money work for you! Or leave a comment and we will contact  you with more details.

 

 

 

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3 responses to “How To Invest Small and Reap Big

  1. Ok, I know you gotta eat lakini saying 9/- is ‘cheap’ is disingenuous coz 30,000/- (not 1.5mn) will buy you 100 shares (the minimum trade allowed on the Normal Board) @300/- on the NSE…

    Let’s face it… there are other factors except ‘price’ i.e. NAV/share, EPS, etc that count… so the 300/- share might be cheaper than the 9/- share!

    • But does it make sense(economic that is) to make factors like EPS count when you have bought 100 shares? Even if the EPS, for instance, is high and you have a 100 shares valued at 30,000, it makes no sense to consider EPS unless viewed from the background that a higher EPS will result into more institutional buyers and thus drive share price higher. Most ordinary folks would rather buy the 9 and get at least get more than 3,000 shares with that money and wait for a price increase. Look at the fundamentals of the company offering the KSh9 share and you will see it is a good price. Or what do you think?

  2. *blonde moment* now Finance,economics, investments etc to me sound like latin and greek mixed together in Babu’s Loliondo’s cooking pot. However since i started reading your blog, its all starting to make sense. Thanx.

    ION What is the minimum required to join BA’s Unit trusts? You haven’t addressed the risk involved? Are returns on Unit Trusts constant or they fluctuate depending on the market?

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