Dear Entrepreneur, Here Are the Top 5 Long Term Investment Opportunities Right Now

Investing can be a great way to set yourself up with a retirement fund, down payment fund, or college tuition savings. The longer the time your money has to grow, the less you have to invest.

It’s best to start investing as soon as possible even today if you can. Start by making sure your high-interest debt is under control and you have an adequate emergency fund (cash you can access quickly if you lose your job or face an unexpected event).

Investing in long-term financial assets is the key to successful wealth accumulation and preservation for your future. Most Kenyans begin to think about their future in their early 40’s when retirement is looming.

However, with the youth in Kenya making up two-thirds of the population, young Kenyans are thinking about their financial future now.

Long-term investment has an average tenure of 15+ years and is usually of low-to-moderate risk promising long-term financial growth. They are often the preferred option for retirement plans and vary based on your preferences, priorities, and amount of capital.

Historically, investments easily outpace inflation, even with the normal ups and downs of the market. You just have to know how to spread out your risk and choose the right methods to help your money grow

1. Collective Investment Schemes (CIS)

A CIS is a collection of funds from different investors with a common objective for financial gain. The scheme, also known as a Unit Trust Fund, requires you to save your income collectively and invest in financial assets that could benefit you all at maturity.

2. Private Equity (PE)

Private companies that are not listed in Nairobi Securities Exchange (NSE) can be a great source of income for your long-term investment plans. There are different forms of private equity with Venture Capital (VC) being the most popular.

3. Real Estate Investment Trusts (REIT)

Real Estate may be the most popular and lucrative investment yet in Kenya. Real Estates investments are diverse ranging from REIT (Real Estates Investment Trusts), Commercial Real Estate, Crowdfunding Estate, and others.

4. Growth stocks

In the world of stock investing, growth stocks are the Ferraris. They promise high growth and along with it, high investment returns. Growth stocks are often tech companies, but they don’t have to be.

They generally plow all their profits back into the business, so they rarely pay out a dividend, at least not until their growth slows.

5. Bond funds

bond fund – either as a mutual fund or bond ETF, contains many bonds from a variety of issuers. Bond funds are typically categorized by the type of bond in the fund – the bond’s duration, its riskiness, the issuer (corporate, municipality, or federal government), and other factors.