26 Apr 2024
About a million Nigerians live in countries other than their own to earn a living. They send money to Nigeria from foreign countries so that their families back home can lead a financially viable life.
The two main factors triggering migration are the scarce employment opportunities and acute poverty in Nigeria. Thanks to their robust economies and expansive job markets, developed countries can accommodate job-seekers.
But have you ever thought about what happens when your job abroad ends and you have to return to your native country, tired, unable to work anymore?
The answer seems scary.
But this is where you need to consider investing in global options and diversify your portfolio.
But do not worry. Let’s attempt the details together.
One of the biggest benefits of the world becoming a global village is the opportunity to invest in different options outside your native country. Gone are the days when you could not think beyond your city or country at a maximum stretch when investing money.
With the world becoming a global village, you can now invest your money in countries other than your own and even diversify your investment portfolio.
Global Investment allows you to benefit from the lucrative investment opportunities that you can access beyond borders. Through global investments, you can acquire financial assets across borders.
Simply put, global investments are the same as having investment opportunities, with the only difference of investing across borders.
This is a relatively new idea but is gaining traction among Nigerian migrants who work abroad and send money online to Nigeria to offer financial aid back home.
Let’s list some of the best global investment opportunities you can invest your money in as a Nigerian migrant working abroad.
Global investment opportunities are much like domestic investment opportunities, as explained above. However, investing in places outside your country can yield more than domestic investments in the same field.
Listed below are some of the global investment opportunities you must consider.
A high-yield savings account is one in which you can deposit your money and earn substantial interest as a profit. These accounts not only give you profit but also allow you easy access to your funds.
Banks issue Certificates of Deposit (CDs), which offer a relatively higher interest rate than you can get on a savings account. A long-term CD is a better option when a drop in the rates is expected in the future. The term's length and interest rate depend upon the terms and conditions agreed upon between you and the bank.
Some corporations, mostly with a global presence, raise money by issuing bonds you can buy as an investor. These bonds have an average maturity of about 10 years or longer and are a better choice when the rates on interest are likely to fall soon.
A dividend is a portion of a company’s profit paid to the shareholders, in most cases, quarterly. If you buy individual stock of a company, whether in your native country or abroad, whether it pays dividends or not, it will benefit you as an investor, maybe in the long run, if not immediately.
It is another great global investment opportunity for you as a Nigerian migrant. You need to choose a property after due diligence, purchase it, maintain it and deal with the tenants. You can find several online platforms that can help you with such investments abroad.
When finding these platforms, you can look for such opportunities in countries where you work as a migrant to earn a living and offer financial help to your family back home in every online money transfer to Nigeria.
Investment diversification refers to making investments in different areas and fields simultaneously to absorb the shocks of financial disruptions if they occur in one location. In simple terms, investment diversification means not putting all your eggs in one basket.
If you do so, you will be saved from the financial shocks in one sector through the benefits you get from another industry in which you have invested.
If you are investing in one sector, thinking you will get dividends, you might have to rethink your strategy. You must diversify your investment portfolio by investing in different fields. Take a look at the tips, but remember that for this, you need money, so make sure that you work in countries that pay the most to expatriate workers as a Nigerian migrant.
Read More: Which Countries Pay the Most to Expat Workers?
Since you are making multiple investments in different sectors and fields to diversify your investment portfolio, you must ensure that you allocate funds properly to each investment area after deeply assessing the pros and cons.
Keep your investments in a certain area and field for some time. For example, if you purchase property, hold it for some time before selling it. This is called a buy-hold strategy, and it saves you from financial shocks.
When planning to diversify your investment portfolio, choose areas and fields that are stable now and seem stable in the future. For example, investing in property in your native or foreign country will be a stable investment.
It is one of the most important tips for you if you are to diversify your investment portfolio. You need to understand all the factors that impact the financial market. You should not focus on factors that affect one area or field but on the factors that greatly impact all financial markets.
Before diversifying your investment portfolio, consult a financial expert and seek their expert financial opinion. You can find many financial experts whose advice can help you make investments smartly and safely.
You have gone abroad from Nigeria to earn a living so that you can send money to Nigeria to offer financial support back home. Right?
But then, do you transfer funds once or regularly?
Well, given that online money transfers are a recurring process, you incur costs repeatedly, which can throw your financials into disequilibrium and disturb your plan of investing money and diversifying your investment portfolio.
Therefore, choosing ACE Money Transfer can help you immensely as the firm charges a low fee and offers live and market-competitive currency exchange rates with the swift and safe delivery of funds from just one window.
This can add to the amount you are saving for investments and enable you to make more viable investments.
With the world becoming a global village, you can invest beyond borders. Global investments refer to investments in areas and fields beyond borders and your native country. Global investments enable you to benefit from lucrative investment opportunities available beyond borders.
Some benefits of global investing are multiple investment options, diversification of your investment portfolio, currency appreciation, protection of your investment from financial shocks, building capital in a foreign currency, and so on.
Some of the best global investment options I should consider in 2024 as a Nigerian migrant include High-Yield Savings Account (HYSA), Long-Term Certificates of Deposit (CDs), Long-Term Corporate Bond Funds, Dividend Stock Funds, and Rental Housing.
Diversifying the investment portfolio refers to investing your money in different areas and fields after thoroughly analyzing the pros and cons. In simple terms, investment portfolio diversification means investing in multiple fields so that the profit from one area of investment saves you from the financial shocks in another location.
Some tips you can follow to diversify your investment portfolio are to properly allocate your assets for each investment and follow a buy-hold strategy. You should choose stable areas for investment, understand all the factors that impact financial markets, and seek expert financial advice from an economic and investment expert.
Resources:
Nigerian Diaspora
(Africa in the 21st century and the role of Nigerians in the diaspora | TheCable)
