Infrastructure Bond: How to Invest Safely

Infrastructure Bond

If you’re uncomfortable with the stock market volatility but still desire good returns in your investments, government bonds make an intelligent addition to your portfolio.

The buzz around infrastructure bonds continues this month with the National Treasury’s announcement of the new infrastructure bond – the IFB1/2022/18 , where it is looking to raise Ksh. 75 billion for funding of infrastructure projects in the financial year 2021/2022 budget estimates.

Given the good returns and the tax-free returns one enjoys through government bonds, you are probably wondering, “what will be the quickest, easiest, and cheapest way for me to buy this bond?”

Lucky for you, the solution is within reach, and you can purchase this infrastructure bond from a licensed investment partner. We know that while the presence of brokerage companies has reduced investing costs, dealing with a bond broker can be quite hectic for some investors. It is, therefore, highly important to deal with a reputable firm – enter Ndovu.

Ndovu is an online platform owned and run by Waanzilishi Capital Limited, an investment adviser licensed by the Capital Markets Authority of Kenya.

Through Ndovu, you can purchase the infrastructure bond and get good returns from your investment with ease. The best part about investing with Ndovu is that you enjoy a range of benefits such as low principal amounts and high-interest rates that are entirely tax-free.

Usually, what works best for your investment depends on your goals, tax exposure, risk tolerance, and duration. But in this case, Ndovu has simplified the process for you by allowing you to invest in a profitable infrastructure bond easily and cost-efficiently.

The IFB1/2022/18 infrastructure bond offered by the National Treasury, on the other hand, will mature after 19 years, and the coupon rate is market-determined. Best of all is that instead of investing in this bond with the usual Ksh. 100,000 shillings, you can purchase it for as low as Ksh. 50,000 shillings with Ndovu.

According to Ndovu estimates, the coupon rate is 13*% per year. The issue closes on Friday, 3rd June 2022.

This means that you can invest cheaply in the current Treasury bond and reap good returns in the long term. Even better is the fact that your money will always be safe since Ndovu is regulated by the CMA, and the bond itself is backed “by the full faith and credit” of Kenya’s Treasury — and by extension, the Kenyan government itself.

If you’re looking to diversify your portfolio, including investments in bonds is the easiest way to go. And since the bond market can sometimes be complex and overwhelming if taken as a whole, you need an investment expert who can help you invest the right way, affordably, and conveniently.

Sign up here to get started.

Disclosure:

Ndovu is a regulated Robo-advisory platform operated by Ndovu Wealth Limited (‘NWL’). NWL is a Fund Manager licensed by the Capital Markets Authority (Kenya). The information provided on this platform and the products and services offered are intended solely for persons in regions and jurisdictions where such distribution and utilization are in accordance with local laws and regulations. Ndovu does not promote its services in regions where it lacks the necessary licenses; It is exclusively available to persons residing in countries where it holds a valid license or has regulated partners. Ndovu does not extend its services to citizens of the United States, Canada, Japan, and other restricted territories.

Disclaimer:

All ETF products are subject to risk, including country/regional, liquidity, and currency risks. Market prices of securities within the ETF may rise and fall, sometimes rapidly and unpredictably. While ETFs provide diversification through exposure to a basket of securities, they do not eliminate the risk of loss. Diversification does not ensure a profit or protect against a loss. These are non-cis products and are registered by the SEC.

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