• Friday, March 29, 2024
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Everything retail investors need to know about TradeFi

Savings Bond

TradeFi (“the Platform”) is the latest disruptive and innovative mobile (and web) application which enables individuals to invest in Federal Government of Nigeria Bonds (FGN) and Treasury Bills directly from their phone, laptop or tablet.

TradeFi affords retail investors the opportunity of understanding what fixed income securities are, as well as enabling them take advantage of the asset class to grow their wealth. That’s a golden opportunity for Nigerians, most of whom do not have an inkling of fixed income market dynamics.

“An average Nigerian investor sees fixed income as a myth, failing to comprehend how it works,” highlighted during an interview with Tosin Osunkoya, Managing Director, Comercio Partners Asset Management.

Leveraging on technology, Comercio Partners Asset Management, through TradeFi, provides the investor the opportunity to exploit the benefits of the fixed income market with risk-averse investment options with higher return than inflation. In addition, TradeFi would be used as a medium to demystify the dynamics in the fixed income market with an e-learning window designed to enlighten the investing public with the basic knowledge of these investment options.

Investors have the free will to decide their investment horizon from a range of two weeks (14 days) to 20 years on the platform based on their investment goals. It is instructive to note that the platform allows investors to terminate their investments at any time during the life of the investment

Furthermore, TradeFi offers competitive returns higher than a savings or regular fixed deposit account which affords an interest rate of about 3% and 7% per annum, respectively. Fixed income securities, i.e. FGN bonds and Treasury bills provide superior returns between 12 – 14% (currently) depending on the tenor of the investment.

When inflation (11.25% in March 2019 according to data by the National Bureau of Statistics) is factored in, an investor who has cash in a savings or fixed deposit account is in fact effectively making negative real returns between 4% and 8% respectively. For treasury bills and FGN Bonds however, there is a real return between 1 – 4% depending on the tenor of the investment chosen.

5 reasons to invest in fixed income securities:

  1. Federal Government (FGN) bonds and treasury bills are 100% safe with fixed returns.
  2. Income earned from these instruments is tax exempt, steady and competitive.
  3. FGN bonds and treasury bills are good for savings towards retirement, marriage, school fees, house projects, holidays etc. which enable the investor gain financial freedom.
  4. It enables individuals enjoy those benefits which accrue to high net-worth investors in the financial market.

 

Benefits of using TradeFi platform to Invest:

  1. Safety; your investments are secured and warehoused by a reputable custodian, Stanbic Nominees Ltd.
  2. Returns; Competitive return on your investments higher than a savings account and regular fixed deposits.
  3. Liquidity; which implies free entry and free exit and no penalties for liquidation your investments.
  4. Convenience; On a click of a button initiate and monitor your investments from wherever you are.
  5. The operation of TradeFi is endorsed by the FMDQ OTC Securities Exchange.

 

How to get started on the app:

  1. You can access the platform on your mobile devices through the play store for android or app store for iOS. You can simply visit TradeFi for the web version (www.tradefi.ng)
  2. Register on TradeFi by completing the short onboarding process.
  3. Once your account is activated, simply fund your TradeFi wallet by transferring money to the dedicated account and choose amongst the investment opportunities that work for you at your convenience.

Currently, over 1,000 users have registered on the platform and are already benefiting from investing in FGN bonds and treasury bills. The sign-up, funding, investment and liquidation processes are very easy and users can conveniently view their investment history, returns and portfolio.

The minimum amount a customer can invest using the TradeFi app is N100,000 only.

 

About Comercio Partners Asset Management:

Comercio Partners Asset Management Ltd is a fast growing, boutique investment management company providing bespoke, cutting edge traditional and alternative investment solution.

Comercio Partners Asset Management (CPAM) is licensed by the Securities and Exchange Commission (SEC) and regulated by FMDQ OTC Securities Exchange to operate as Investment Advisers, Portfolio and Asset Managers. CPAM provides a platform that balances its clients’ investment objectives with their risk appetite and investment time horizon. The company’s aim is to constantly generate superior, risk adjusted returns to their high net-worth, Institutional and Retail clients by providing high quality investment advice through a well-diversified, multi asset class approach.