UIBFS | The Uganda Institute of Banking and Financials Services | Financial Awareness Month 2022 (Season Three)

Different forms of Investments available to you

There are different investment products to choose from and you need to educate yourself fully about them to enable you to determine and choose the one that best suits your situation and financial need.

Available investment products to choose from including the following

  1. Business: These include business set up for production, processing and exportation. Some people have set up both big and small outlets for the sale of goods and services. These can include retail and wholesale shops and other companies.
  2. Farming; Uganda is an Agricultural economy and most investments are carried out in this sector. Opportunities are available for investment form production, processing and exportation.
  3. Real Estate; Investment in property or real estate or land is good business especially when the market is right. There are many real estate companies in Uganda involved in the purchase and sale of land and other assets e.g. houses.
  4. Fixed Deposit or Certificate of Deposit: When you invest in a fixed deposit, you lend your money to the financial institution and benefit from the interest that accrues on the money. You can invest in a fixed deposit by paying money into an account set up for you by the relevant financial institution.
  5. Stocks/Shares: A share is an instrument which represents partial ownership of a company. when you invest in shares, you become a shareholder in the company and are entitled to dividends from the profits of the company.
  6. Bonds; A bond is an instrument used by the issuer to borrow money from the holder with the obligation to repay the principal and interest at future dates. When you invest in bonds, you lend your money to the issuer of the bond who may be a company or government. Bonds can be bought and sold from a regulated stock exchange such as the Uganda Securities Exchange (USE).
  7. Government securities (treasury bills and bonds) are agreements where an individual or business lends money to the government for a specified period (between 3 months and 10 years) after which they will get their initial money back plus interest. Government securities come with almost no risk of default and the interest is fixed.
  8. Collective Investment Schemes (CISs) are private financial arrangements regulated by the government through the Capital Markets Authority (CMA), where many small investors pool resources. Professional licensed and certified fund managers invest these resources in various ways such as shares, bonds, property, fixed deposit accounts and treasury bills with the main goal of generating high returns while minimising risk through investing in different financial opportunities.

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