Living abroad is likely to be one of the most memorable undertakings one can do. However, if you are planning on investing when working abroad, don’t expect the experience to be very thrilling. The challenges one faces may be overwhelming. Relatives have been known to dupe investors, while some not well thought-out ideas have failed. While it is difficult to invest when living in a foreign country, it is not impossible. Here are the best ways to invest your money.
Manage currency risk
The key consideration here is to avoid losing money due to currency fluctuations. The best course of action is to open an account in a strong currency such as the US dollar or British pound. If you plan to retire in Kenya, make your investments there but set your bank account to your preferred currency. You are bound to make an interest rather than a loss by using this trick. Also, invest in stocks, bonds and mutual funds based on the said currency.
Construct a globally-diversified portfolio
Many individuals living abroad have a portfolio of investments that are limited to their area of residence. If you are not sure where you’d like to settle, build a portfolio that is global based on multiple currencies. This way you reduce the challenges associated with cashing in your investments.
Equities and Stock Exchange
The Nairobi Securities Exchange (NSE) is a great platform for people in the diaspora to invest. It is the most regulated in East Africa and has enlisted over 50 great companies. You can use a reliable investment broker to help you through this if you do not feel adequately equipped to do so.
Government Securities
Recently, the government created a platform where Kenyans can invest using their mobile phones. M-Akiba has continued to transform how people viewed government bonds. With many avenues available in investment, this is by far the safest. You get a consistent and stable return with government bills and bonds. You can use a local bank or investment broker to get into the money market.
Real Estate
The real estate industry in Kenya has been growing steadily and favorably. You can never go wrong with property investments. Work with reputable real estate firms and advocates instead of relying on friends or relatives. If you plan on returning to Kenya, you may consider investing in a home as well. Make sure you get a good property manager to take care of your investment when you are away. Real estate is a great long-term investment strategy.
Business
Businesses are quite lucrative when managed effectively. You can get into the business of your choice by yourself or in a partnership. It is advisable to avoid investing in businesses with family or friends as this may not work to your favor. Returns are high with businesses and some of the foreign products can be sourced easily with you being abroad.
Before diving into any investment opportunity, educate yourself to avoid losing your hard-earned money. Prudence dictates that you take some time to learn the pros and cons of each investment before putting your money into it. The last thing you want is a venture to fail and go with all your money.