30/03/2023
INVESTMENT OPTIONS FOR YOUNG PEOPLE
Fellow youths if you are thinking of investing to secure your future then this article is for you.
There are several investment options available for young people in Zambia, depending on their risk appetite and investment goals. Here are some examples of investment options in Zambia for young people :
Stocks: Young people can invest in stocks listed on the Lusaka Securities Exchange (LuSE). As of December 2022, there were 23 listed companies on the LuSE, with a total market capitalization of over K47.2 billion (approximately USD 2.7 billion). The LuSE has performed well in recent years, with the LuSE All Share Index (LASI) increasing by 48% in 2020 and over 25% in 2022.
Treasury bills and bonds: Young people can invest in government securities such as treasury bills and bonds, which offer low-risk to Zero risk investment options with relatively low returns. As of December 2022, the Bank of Zambia (BoZ) offered 91-day, 182-day, and 364-day treasury bills.
Mutual funds: Young people can invest in mutual funds, which pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, and other securities. As of December 2022, there were several mutual funds available in Zambia, including the Madison Money Market Fund and the ZANACO Equity fund.
Real estate: Young people can invest in real estate, either by purchasing property directly or investing in real estate investment trusts (REITs). The Zambian real estate market has been growing in recent years, with a total of over 5,011 property transfers recorded in 2022, up from 4,538 in 2019. In addition, several REITs have been established in Zambia, including the Real Estate Investment Zambia (REIZ) and the Zambia Property Opportunities Fund (ZPOF).
Overall, there are several investment options available for young people in Zambia, ranging from low-risk options such as treasury bills and bonds, to higher-risk options such as stocks and real estate. However, it is important for young people to carefully consider their investment goals and risk tolerance before investing, and it is very important to seek professional advice if necessary.