{
  "id": 12317549,
  "title": "Where to invest in October 2026: Stocks, fixed income and assets to watch",
  "url": "https://urgent.news/2026/10/06/where-to-invest-in-october-2026-stocks-fixed-income-and-assets-to",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-06T05:53:25.000Z",
  "source": {
    "name": "Nairametrics",
    "slug": "nairametrics",
    "url": "https://nairametrics.com/2026/10/06/where-to-invest-in-october-2026-stocks-fixed-income-and-assets-to-watch/"
  },
  "original_language": "en",
  "account": "October 2026 begins with investors navigating a new economic landscape. Nigeria's Central Bank has reduced the Monetary Policy Rate (MPR) by 350 basis points to 23%, causing Treasury bill yields to decline. The naira has strengthened to approximately N1,329.50 against the US dollar, and external reserves have surpassed $54 billion. The Nigerian stock market has also delivered robust gains this year.\n\nInvestors must now consider where to allocate their funds as interest rates fall while minimizing additional risk. Those seeking steady income might opt for fixed income securities. Investors targeting capital growth could turn to equities or equity funds. Dollar and alternative assets can offer diversification benefits.\n\nThe choice of investment depends on the desired return, investment horizon, and the investor's risk tolerance. Even though fixed income is no longer as appealing due to the lowered MPR, returns are still attractive. However, the window to secure the earlier year's rates is narrowing, and those who can invest longer may consider government bonds. FGN bonds could appreciate in value if yields continue to decline.\n\nBeyond government securities, commercial paper offers higher yields, but with higher risk. Investors should scrutinize the borrower's credibility, the purpose of the borrowed funds, and the company's ability to repay. Money-market funds provide a simple means to earn fixed-income returns without dealing directly with Treasury bills or commercial paper. Still, returns might gradually diminish as the easing cycle persists. Nonetheless, money-market funds remain a viable option for investors seeking liquidity and relatively low volatility.\n\nFor those seeking returns above the current 15% to 17% in fixed income, equities may be the answer. However, after a strong year, choosing the right stocks is crucial. Several companies, including ETI, AIICO, UBA, Access Holdings, GTCO, Zenith Bank, MTN Nigeria, BUA Cement, Aradel, and Nigerian Breweries, have shown promising potential for growth. Investors should focus on businesses with strong earnings, dividends, and valuations that still offer room for appreciation.\n\nMutual funds, offered by brokerage houses, provide exposure to equities while allowing investors to rely on professional fund managers' expertise. In August, the top ten Nigerian equity mutual funds generated year-to-date returns ranging from 46.64% to 82.36%, with Zedcrest Equity Fund leading at 82.36%. Still, these returns are not guaranteed, and investors should consider the manager's track record, portfolio, fees, and risk profile.\n\nDollar assets still hold a place in a diversified portfolio. However, the return gap with Naira investments remains substantial. As Nigeria's naira strengthens and reserves grow, foreign assets may provide a hedge against currency and country risk, particularly for investors seeking higher returns than fixed income can offer.\n\nLastly, it is essential to recognize that fixed income alone may not achieve a 30% return on a N10m portfolio within a year. Investors must understand that pursuing a 30% target comes with significantly higher risk than earning 16% from government securities. Building a well-diversified portfolio with a balanced risk-reward profile should be the ultimate goal.",
  "summary": "October opens with investors facing a different market from the one they saw at the beginning of September. The Central Bank of Nigeria (CBN) has cut the Monetary Policy Rate by 350 basis points to 23%, Treasury bill yields have started falling, the naira ended September around N1,329.50/$, external reserves have climbed above $54 billion; […] The post Where to invest in October 2026: Stocks,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "AI-picked stocks have gained up to 106%, what’s on the radar this October",
        "url": "https://urgent.news/2026/10/06/ai-picked-stocks-have-gained-up-to-106-whats-on-the-radar-this-october",
        "published": "2026-10-06T04:35:24.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}