Article appears on Standardmedia.co.ke. It was written by Kenneth Kaniu, CEO, Britam Asset Managers
For passive investments, he can put it in a money market fund with an average return of 10 per cent where he will be making about Sh20 million a year for his Sh200 million or averagely Sh1.5 million a month.
That is decent money. Some would prefer going for an active investment by starting a business or an enterprise but the trick is in mixing the two. For real estate, they will need some professional advice since this area needs some expertise, you just can’t go out there and buy land before consulting a professional. Such an individual requires advice.
In other jurisdictions some people end up poorer than they were after winning such jackpot, after using all the money by lending to friends and relatives, travelling the world and buying cars.
What some countries do is that they fail to give out all the money to the winner while the rest is put in an annuity fund where they receive a decent amount for the rest of their lives.
Abdulraman Hussein, an investment analyst at AIB Capital With Sh221 million, he can put his money in the capital market. If he is risk averse, he can buy government securities—the Treasury Bills and Treasury Bonds.
He will be assured of returns. If he puts his money in equities, he could make a loss but he can also make high returns. Or he can balance between the two.