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Saturday, November 30, 2013

Investments Options in Kenya: 7 Hot Investment Options for December

Personal finance blogs are a wash with advice on investment options, some of which are not applicable to Kenyans. The IRA, stocks /equity, Gold, Bonds, Forex trade, fix deposit, Oil, real estate  are just but afew investment options floated by financial advisers all over. But the question in every Kenyan investor's mind is : what are the top investment options in Kenya today?

Kenya form part of the world so most of the investment options put forward by bloggers and financial gurus will also apply here.  However, since our economy is driven by different factors, from say the West, some investment options will do well in Kenya but fail else where.

That said, it is every investor's wish to make money from his/her investment,  hence the need to explore some key issues to remember before we part with our hard earned cash for investment.

Draw a financial plan.

Before making a decision on what, where and when to invest, sit down and make an honest evaluation of your financial situation. This will help you define a purpose for your cash.

Evaluate your risk tolerance

Every investment has some degree of risk attached to it. If you intend to buy securities - such as bonds, stocks or mutual funds - it's important to understand that you could lose all or some of your money.

Taking a risk tolerance test leaves you prepared for the turbulence ahead.

Portfolio balance

It's never a good idea to have all your eggs in one basket lest all they break. Including assets with investment returns that flactuates under different market conditions in your portfolio, can protect you against significant losses.

Create an emergency fund.

A smart investor should put enough money in a savings product to deal with an emergency, like being fired suddenly. This amount should be put somewhere safe but should always be accessible wherever needed.

However, it’s also wise to have an emergency fund that are business based and that will enable you to take advantage of sudeen investment opportunities.

Avoid fraudulent circumstances

Scamers also read the headlines. They’ll often use a highly publicized news to lure unsuspecting investors and make their “opportunity” sound more genuine. Avoid scam. When the deal is to good, think twice.

With that out of the way, what are the top 7 investment options every Kenyan folk should consider this December?

Stocks.

There are lots of discounted options for security traders through which one can make some good money by marginal trading.

Bonds:
The bond market is a safer option of making money by buying government debt at a fixed return. With the numerous projects the Government is undertaking, the bond market will thrive.

Real Estate

Real estate, especially targeting the middle and lower class residential housing, is currently the most lucrative investment Kenya, given that demand outstrips supply by 100%. The prices of property are always know to appreciate.

Transportation.

Forget the stand gauge railway line, Kenyans won't shift from matatu to train. Syokimau residents are a testimony to this.  The establishment of the 47 counties have raised the demand for better transport solutions as more people travel more and  far.

Electronic Imports.

Kenyans are not going to stop buying electronics any sooner. Be it TV, Smartphone, radio, tablets, laptop, Kenyans always want to move with the technological trends. The planned digital migration has also opened an opportunity in and demand for converter boxes. So why not rush to China or Dubai and import these electronic gadgets in high demand.

County businesses:

Who will supply the  needs of the 47 county governments? Investing at the grass root in areas of hospitality, retail and services is one of the best ways to invest your money in Kenya. The county governments have generated such a huge demand, that it will take minimum 5 years to just stabilize it, more so in areas far from the three cities; Nairobi, Mombasa and Kisumu.

Salon and Beauty Shop

Any product designed to enhance beauty and is targeted to women is going to sell like hot cake in this country. From hair additions, nail polish, to skin caring creams, the demand is ever high. Now that the holidays are soon approaching, women flock boutiques for trendy clothes, weaves and beauty creams. Visit any Bestley (Bestlady Center) branch in Nairobi to prove this.
Women will spebd big to look good and thats why even the poorest will save for a nice weave. Given that nearly 90 % of women in Kenya have hair additions and an hair make lasting less than 3 weeks, you can do the math to establish the demand created for salons and beauty products.

These are the  7 hot investment opportunities in Kenya today. The fundamentals are diverse, but the return on investment, especially between now and the third quarter of 2014 will be huge for those willing to take the risks.

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