By now you’ve likely heard that you should be investing toward big financial goals – like retirement. Great advice! But it can sometimes be a struggle figuring out how to invest.
Well, here’s how to invest when you know nothing about investing.
What is investing?
Investing is putting money to work with the intention of a higher payback over time.
There are generally two approaches to investing: Active and Passive.
With active, someone is actively managing their assets, perhaps daily or monthly, to capture the best returns and take advantage of price movements.
With passive, this corresponds to "buy and hold" where you try to take advantage of overall market trends.
Why should I pick a passive investment?
For someone new (and for most people), a passive strategy is best. It requires less knowledge and lets you spend time doing your actual day job. It would take a long time before you felt confident that you had the knowledge to make active investments. Thus as you learn active investing, your money would be earning returns in passive investment.
So which investment should I venture into?
The best passive to venture into would be a Unit Trust (Money Market Fund). Money market funds are often regarded as being as safe as bank deposits yet providing a higher yield. We would recommend saving in Sanlam money market. Once you've deposited money into a money market, you will receive interest payments monthly. Making frequent deposits increases your interest payment.
Could you guide me to buy a money market on Abacus?
On The Abacus Web Platform;
- Head over to https://abacus.co.ke/live/unittrusts/purchase
- Select the fund you would like to buy (e.g. Sanlam)
- Enter the amount to deposit
- Preview your order
- Confirm your order
On The Abacus App;
- Click on Unit Trusts
- Click on Buy/Sell
- Select the fund you would like to buy (e.g. Sanlam)
- Enter the amount to buy
- Preview your order
- Confirm your order
Happy Investing 😊
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