The most significant difference wealthy individuals and those struggling with life is the attitude of each person. To be wealthy, one must change the behavior, thinking and decision-making capabilities. Therefore, you need to take advantage of numerous online investments in Ghana. For instance, the majority of the rich people will always contemplate about increasing their income and then getting handsome profits on the same income. Therefore, they strive to establish numerous sources of income as they brainstorm on creating immerse wealth by compounding the income. Investment banks in Ghana can also help you gain your financial freedom.
For the individuals working in different companies, they get their salary as the primary source of income at the end of every month. That is one form of fixed income and there is no way that salary can make you rich. Therefore, it is more imperative for you to consider adding other sources of income such as online investment opportunities in Ghana and grow your income. Online investment with daily returns that will help you get the financial freedom and unimaginable financial stability.
Online investment in Ghana is one of the best sources of income you need to consider since it lets you work from the comfort of your home and advance your business without investing a lot of cash on it. However, you need to understand how to make money online for you to be successful. Some of these online investment opportunities in Ghana are:
- Forex trading
- Mutual funds
Mutual funds in Ghana
Mutual funds have progressively established themselves as one of the best online business opportunities in Ghana. They have achieved this by making sure that they are biggest advertisers in the investment industry. Note that the majority of Ghanaian tertiary students will use mutual funds as their first investing tool since there is an investment club that the fund established at their learning institution or a seminar they held.
What is a mutual fund?
This can be defined as a pool of funds from different financiers that are invested in securities picked by a professional manager. Investing in a mutual fund means that you own a percentage of all the securities that the mutual fund invests in but in an indirect way. Bear in mind that a mutual fund can be open-minded in such a way that you can reclaim your shares by reselling it the fund. It can also be close-ended where you are allowed to sell your shares to another investor in case you want to get out of the fund.
How mutual funds in Ghana works
A mutual fund works by investing in various securities, its value will depend on the value of the securities it invests in. therefore, the cost of one share in the mutual fund is equivalent to the value of the net assets of the fund divided by the total amount of shares of the fund. In most cases, the value of the returns from the securities possessed by the fund like interests and dividends are re-invested in the fund to increase the price of shares. Therefore, as an investor in a mutual fund, you get more profit when the price of shares goes up.
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What are the restrictions on mutual funds in Ghana?
Here are some of the things that mutual funds in Ghana are not permitted to do:
- Investing in commodities, futures, and options
- Investing over 10% of their net assets value in real estate
- Investing over 25% of their net asset value in securities of a single company or issuer
- Investing over 10% of their net property value in various online investment companies
- Investing more than 15% of net property value in a firm with shares that are not listed on a certified exchange
- Attain a controlling stake in any firm
- Short securities where they invest with anticipation that the price of a security will fall so that they can gain from the situation
- Investing in securities of a company whereby the fund managers possess over 5% of the interest
Types of mutual funds in Ghana
Mutual funds in this nation are accessible in the following categories:
Equity funds: This entails mutual funds investing in equities and they are characterized by long-term growth focus. Some of online investment companies in Ghana that specialize in equity funds include:
- FirstBanC Heritage Fund Limited
- SEM All-Africa Equity Fund Limited
- HFC Equity Trust
- Omega Equity Fund Limited
- Databank Epack Investment Fund
Money market funds: These are known to be the market for instruments that are designed to mature in one 12 months. They invest in low-risk and short-term securities like treasury bills and they are meant to protect capital instead of focusing on growth. They include:
- SEM Money Plus Fund Limited
- Databank Money Market Fund Limited
- HFC Unit Trust, Legacy Unit Trust
- TTL Income Haven Fund
- Sirius Opportunity Fund Limited
- Galaxy Money Market Fund Limited
- First Fund Limited
- EDC Money Market Unit Trust
Fixed/bond income funds: These online investment companies focus on investing in long-term fixed income securities like corporate debt, fixed deposits, notes, bonds, long-term government securities, and debentures. They include:
- Stanbic Income Fund Trust
- All-Time Bond Fund Limited
- EDC Ghana Fixed Income Trust
- SEM Income Fund Limited
- UniSecurities Unit Trust
Benefits of investing in mutual funds
Compared to investing in individual securities, directly, mutual funds offers some advantages:
- Mutual funds specialize in investing in numerous market instruments and this helps you to diversify your portfolio by clinching onto them.
- It’s a tax-free form of online investment since investors are not required to tax
- Professional fund officers are responsible for picking your securities
- You can track your performance easily since you will receive annual reports, price quotes on the sites and other important information
- You get your cash any time you need it
- Even though you may suffer some losses through underperformance, you won’t lose all your investments
- High return on investment over the long-term
Limitations of mutual funds in Ghana
Mutual funds also present some disadvantages:
- High management fees
- Fees charged when depositing or withdrawing
- Do not have a fixed return
- Limited investment alternatives
Forex trading in Ghana
In the current economy, where you need a well-paying job to live in a high-class lifestyle and enjoy life, you need to have extra investment platform to bail you out. Forex trading is one of the best investments in Ghana that is turning out to be the most lucrative investment schemes. With the influx of international traders here, forex trading in Ghana is becoming seamless in terms of transfer and transactions. The emergence of retail brokers has made banks, various institutions and individuals to start embracing forex trading.
While forex trading tends to be a new online investment venture in the country, it can still brag of numerous prominent personalities who have beaten to odds of investing heavily in these trades.
Things you must know as a forex investor:
Types of forex brokers
Even though there are numerous MT4 systems out there that traders and investors can use, understanding the kind of broker you are working with is vital. Here are the type of brokers you will come across.
These are referred to as market makers who offer fixed spreads and might decide to quote below or above the actual price at any time. In most cases, these market creators will act like the counterpart of the trader who does not trader directly with the liquidity providers. They get their income via the spreads and they mostly assume the opposite trades of their customers before they cover themselves.
No dealing desk
This type of trader offers you with a direct access to the interbank market whereby this can be straight through processing (STP) or STP and ECN (electronic communication network. An honest No Dealing Desk broker will not re-quote the prices and this implies that you will trade during the economic announcement without restrictions. The spreads provided tend to be lower, but they are not fixed. This means that they can upsurge significantly when volatility increases when economic announcements are made. Therefore, these type of brokers is paid through commissions on every trade or they can opt to increase the spread.
STP (Straight through Processing)
This is where all the forex transactions are fully computerized and are instantly processed on the interbank without any broker interfering with the transaction.
ECN (Elecetronic Communication Network)
These brokers offer and display real-time order details that feature all the orders that were processed and the prices given by the banks on the interbank market. Therefore, they help in enhancing transparency in the market by giving out information to the participants in the market. ECN brokers get their income through taking a portion of the amount traded. With this type of a broker, all transactions are made on the interbank market in no dealing desk mode.
MTF (Multilateral Trading Facilities)
They strive to bring together the buyers and sellers of financial instruments as per non-discretionary rules. While Multilateral Trading Facilities is a non-regulated exchange, it runs under similar regulations, whereby the rules are crystal clear and ensure there is a fair trading system. MTF broker assures price efficiency and clearing of transactions and this trading facility offers greater discretion and faster order execution speed and low brokerage charges.
How to deposit and withdraw your funds
This is an imperative aspect you need to consider as an investor and try to work with brokers who provide the bank wiring system. Others will use eCash systems that are also good but on some occasions, they experience some problem with their systems. In most cases, it will not take more than 2 days to credit an investor’s account. When it comes to withdrawing, some brokers will use a local bank, which means they can transfer your income to any bank account in Ghana.
How is the FOREX trading done?
Once you invest your cash in a forex trading, but you don’t know how trading is done, here is a solution for you. Make sure you work with a broker who offers free or paid signals that can help you in the trading process. For instance, one of the brokers who offer these services on the majority of investors on their system is Future Pip. As an investor, make sure you are included in the process of choosing a fund officer and check out on their trading systems. This will assist you to determine who is on the trading platform and how to monitor your account.
Additionally, you need to make sure you take part in the opening, financing and selecting of fund officers for your account. In case you don’t have time to monitor your platform on daily basis, you don’t need to worry since some genuine brokers will give you statements of your account. If you need an extra source of income, join different online investment for beginners platform and watch your income grow spontaneously.
How to buy bitcoins in Ghana
Bitcoin in Ghana has been a topic of discussion in the last few months and it is becoming one of the best ways to make money online. Here is a guide that will help you understand the mystery behind this magic digital currency and how to buy bitcoin in Ghana.
Unlike the Ghanaian Cedi, bitcoin is just a digital currency that cannot be seen nor felt, meaning that it is mined and stored electronically. Bitcoin is not controlled by the government. The coin was first developed in 2009 by an anonymous person under the name Satoshi Nakamoto and he released the coin as open-source software. Here is a process of getting bitcoin in Ghana.
Creating a bitcoin wallet online
This is the first thing you need to do when you want to invest in bitcoin. A bitcoin wallet will allow you store your cryptocurrency, this means that the wallet will serve as a bank account and it’s created via online applications. The moment you get your wallet, you can start trading with your currency.
How to get bitcoins in Ghana
Buying and selling of bitcoins involve some simple steps. You can get access to bitcoins through three major ways:
- You can obtain your bitcoins through accepting bitcoin mode of payment for goods and services, although this is not very common in Ghana
- You can engage in selling and buying bitcoin through exchanging of Ghana Cedis with bitcoin
- Purchasing bitcoins from colleagues in Ghana
- Purchasing the coins from friends is pretty fast than exchanging it and it is also less expensive. However, you need to engage in a face to face business when purchasing bitcoins.
Bitcoin exchange in Ghana
While this is one of the common methods of getting bitcoin, it is rarely used in Ghana. Several online investment platforms that specialize in buying and selling bitcoins are easily accessible. All you need to do is register your bank account details and change your bitcoins in Ghanaian currency and Ghanaian Cedis to bitcoin. Nevertheless, you must be careful when using the credible exchange so that you will not be scammed. Don’t be a victim!
Bitcoin selling in Ghana
Bitcoin is the most convenient means of online investment opportunities since it allows you to sell your coins either from the local bitcoin merchants or online platforms that sell bitcoin in Ghana. The most reliable local bitcoin trader in Ghana is LocalBitcoins. The most effective alternative for this method is buying the bitcoins through mobile money. You can as well sell your coins through online platforms, where they will send you cash via platforms such as PayPal, perfect money, pioneer and many more.
Online real estate investment in Ghana
As an investor, your primary goal should be growing your capital as you minimize risks. One of the best ways of ensuring this is to invest in online real estate since its average income is always promising and it allows you to hedge against the volatility in the stock market.
How online real estate investment works
In most cases, online real estate lending platforms have established a special purpose vehicle that helps in selling specific projects (SPV)and borrower payment dependent notes (BPDN) to various investors. The SPV uses the capital provided by the investor to give it the debtor by taking a first lien of the asset in exchange for the investment. The majority of online investment sites in Ghana will allow the debtor to leverage his project costs while the debtor is required to fill the remaining portion with their own funds in the form of common equity.
Before you start this online investment and earn money, here are the things you need to ponder before using online investment sites.
Lower investment minimums
In the current epoch where peer-to-peer lending and crowdfunding has gained its ground, online lending platforms will give its investors a access to investments as all as $1000. This will let people mitigate their risks by spreading capital across several investment projects.
Management of risk via quality underwriting
Make sure you work with an online real estate investment platform that runs a detailed underwriting review on the loan provision by evaluating the borrower bank statements and running credit checks. This lets those investors who don’t have experience in real estate investing to evaluate the supporting details of the pre-vetted deal flow to help the invest in lucrative ventures.
Secure monthly revenue
In most cases, lending cash on house flips must come with a lien on a property. For the reason that investors are required to invest their cash in form of a loan, they are supposed to get income on a monthly basis. This will allow them to build a passive revenue stream.
Online platforms will assist you to get access to different lucrative investments and also help you manage them. Bing an SPV, the online platforms are responsible to follow up with the borrower on the status of the interest payment and distribution of monthly interest to various investors.
Apart from the advantages discussed above, there are some limitations of taking part in online real estate investment ventures. They include:
Currently, this form of investment lacks a secondary market where investors can liquidate their online investment. This means that the investments must be put on hold until they mature and investors must depend on these platforms to manage their investment post costing.
Inadequate communication with the debtor
With online platforms, talking to the borrower is an impossible mission since the platform has already created a huge barrier. Since the public is purchasing the notes from the platform’s SPV, the investor is required to depend on the SPV’s correspondence with the debtor to receive any updates and information.
Still, many people are worried how the underwriting rules in this young industry will hold in case there is an economic correction. Since the institutional resources are becoming more readily accessible, lending rules are getting more aggressive in the last few months. This is because most of the online investment apps and websites are racing to acquire a huge market share of the deal flow to serve the institutional demand.
Example of an online real estate company
MeQasa is the prominent online real estate investment platforms that obtained $500000 investment funding from frontier digital ventures. The platform was created in 2013 by three Ghanian entrepreneurs, Kofi Amuasi, Rashad Tungteiya Seini and Kelvin Nyame.
Looking for a house to buy or even rent in Ghana has been a major challenge to many and this is why online tools and platforms have been put in place to help people do their searches efficiently. MeQaSa.com has played a vital role in elevating the real estate industry in Ghana by offering a free service that assists brokers and property owners and other real estate professionals do their business effectively online. They do this through simplifying the search experience for potential home buyers and tenants.
Before you decide to take part in any form of online investment, it is imperative to conduct your due diligence, especially when investing in the online real estate.
Fortunately, in the era of social media, the high demand for communal engagement has resulted to innovated websites that will let investors work together and communicate effectively. A good example for this is CrowDD and BiggerPockets. These are the sites play a vital role in providing classifications and evaluations and members are allowed to rate sponsors and platforms who they have invested.
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