REITs vs OMO bills, where should Nigerian investors put their money?
With the Central Bank of Nigeria reopening Open Market Operations (OMO) securities to individuals, companies and non-bank financial institutions through deposit money banks, investors now have greater access to an asset offering relatively high and more predictable returns. The post REITs vs OMO bills, where should Nigerian investors put their money? appeared first on Nairametrics .
Nigerian investors are faced with a decision when choosing between Nigerian sovereign debt securities and other fixed-income investments. The reopening of Open Market Operations (OMO) securities to the public has created a debate about where to put money. While OMO bills are offering high returns of close to 20%, equities carry additional risk.
However, some listed stocks and income-oriented listed funds offer attractive distributions alongside potential capital appreciation. Real Estate Investment Trusts (REITs) and infrastructure funds provide income-generating assets with the potential for market value growth. Despite the 20% OMO yield, some listed funds offer higher returns, making them worth considering.
REITs and related funds, such as MREIF, NREIT, and CNIF, have shown varying performance, indicating that income and capital appreciation can combine differently. Investors should weigh the benefits of income and potential capital gains when deciding between fixed-income securities and equities.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
