Investing means putting an amount of something, with the expectation, it will generate a return in the future. It involves taking risks with hope and potential of a higher return.One must have the willingness to accept loss as a possible outcome. To invest one must be patient, courageous and determined through the investment journey. It requires one to be emotionally and mentally prepared to embrace unforeseen loss that may be experienced.

Before settling for a saving vehicle one should carry out research to establish potential risks and rewards of each type of investment to avoid outright risks that may be glaring at you. Avoid following others blindly who promise high returns. Seek a professional advice before investing to learn on the pros and cons of each  vehicle.

However selected investment must have a legal backing and should be ethical to avoid losing your hard earned cash to quick rich schemes that promise huge earnings that are not in reality with the market. Investments promising interest rates that are double the lending interest rates in the market are likely to be a scam and should be taken with caution.

Types of Investment Vehicles

  1. Education

Investment in education has been proved to be worthwhile, whether one is running a business or working as an employee. Education increases personal and professional mobility, improved quality of life, better consumer decision making skills, rational skills and better earnings. Education helps one become more qualified in their area of specialization making one more attractive to the customers.

  1. Stocks and Bonds

This involves buying shares of various organizations and expecting dividends from profits made by the company annually. Gain can also be obtained when the price of the shares rises and by selling the shares one makes more money. Bonds are long term investment which offers a guaranteed return of a given percentage annually for an agreed period of time. Ensure the company selling the shares or bonds is regulated by the stock market authority to secure your investment.

  1. Mutual Funds

It is a pool of funds that are managed by a fund manager who invest the monies in various investment vehicles like stocks, real estate. Earnings are shared at an agreed percentage annually to the investors.

  1. Businesses

The investment involves putting funds in a new business whose returns may not be guaranteed. However it requires time and patience before the business can bring some returns.

  1. Real Estate

Buying of land, a house or apartment is another investment vehicle. It requires huge investment initially and may turn to be a good investment.

  1. Treasury bills/Bonds

They are government papers that have a guaranteed return and are refereed to less risky investment. it involves lending to the government through the central bank. Treasury bills are short term investments of 91 days or 180 days or 365 days. Bonds are long term investment and could be 5 years, 10 years or more.  The interest rate is provided by the central bank and is usually annual. https://www.centralbank.go.ke/bills-bonds/treasury-bills/


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