The decision to make an investment ought to be well thought out and takes courage and patience. Therefore in many cases, it will take time. BUT, there is nothing more worthwhile than making the first steps,regardless of what the outcomes turn out to be.
For first time investors, it may take much longer to make the move, but here are some nuggets of investment wisdom.
NOTE: The tips below are not exhaustive and are only meant to provide background information; before investing, it is important to seek full and proper investment advice from a licensed investment advisor.
- Always endeavor to seek out for information about the company you are planning to invest in
- Monitor the share price of the company you are invested in, or plan to invest in. The share prices can be accessed daily from the Exchange websites or in the daily newspapers
- Seek out for research reports on the companies listed on the exchanges from your broker
- Share prices can go up or go down; but therein lies the opportunity to make money
- Monitor newspapers and the Bank of Uganda website for information on Treasury bill auctions, results and yields.
- Treasury bills can be sold before the maturity/redemption date in the secondary market which provides the desired liquidity.
- Treasury bills are risk free and backed by the full faith and credit of the government. This makes them appropriate for individuals pre-disposed to select investments with a low degree of risk (risk averse individuals).
- Aim to invest atleast 5% of your total net-worth in the capital markets over the next three years
- The investment can be gradual with an increment every year until you attain the 5% threshold
- Do not put all your savings in one investment, but build a diversified portfolio of investments.