You can focus on Europe, America and China if you want to invest part of your assets, but you can also focus on other countries. Although most people invest in the European market or the US market, there are also more and more people investing in the continent of Africa. This is not for nothing; with the right investments in Africa you can make a lot of profit.
In this article you can read more about investing in Africa. For example, you can read about the possibilities if you want to invest in Africa, but also what to look out for if you want to invest part of your assets in African investments.
How can you directly invest in Africa?
You can invest in Africa by opening a free account with a broker. With a broker you can buy different stocks with a mouse click. It is also possible for a broker to buy a share in an investment fund, for example. Without opening an account with a broker, it is not possible to invest in Africa.
Investing in Africa: a few possibilities
The best way to invest in Africa is to invest (a part of) your assets in an investment fund. There are various investment funds that focus on the African market, including the Robeco Africa Fund. This fund focuses on African equities and has existed since the year 2008. You can certainly call the fund trustworthy.
Another index fund that you can invest in is the Market Vectors Africa Index Fund. This index fund follows the Dow Jones Africa Titans 50 and helps you invest in Africa on a wide scale. If you invest in this fund, you invest in companies that are listed on the African stock exchange and in companies that collect more than 50% of their turnover in Africa.
Do you not want to invest in the continent of Africa, but would you prefer to focus on a specific African country? Then you can invest in the iShares MCI South Africa Index. This index follows South Africa: economically one of the most stable countries on the continent. Another fund that follows a specific African country is the Market Vector fund for Egypt.
Finally, you can also invest indirectly in Africa. For example, it is possible to invest in the currency of South Africa. You can then estimate whether the price of the South African Rand will increase or decrease. You can also invest in commodities where you can buy commodities that are common in African countries. All in all, there are plenty of opportunities to invest in Africa!!
Investing in Africa: 3 important tips
You can make a lot of money by investing in Africa, but then you have to do this in the right way. We are happy to give you three important tips for investing responsibly in this continent, for the highest possible return.
Tip 1: take extra investment risks into account. The continent of Africa is simply less stable than, for example, Europe. If you invest in Africa, it is advisable to take into account some extra risks.
Tip 2: stay calm if anything goes poorly with your investments. If you invest with emotions, then you are more likely to make the wrong investment decisions. If things go poorly, you will stay calm. If it goes very well, you will stay calm. Euphoria is also not good for the sensible investor.
Tip 3: only invest money that you can miss. It is unwise to invest all your assets. If you need money unexpectedly, it is not so easy to get this money back once you have invested it. That is why you only invest money that you really can miss and always keep some assets in your bank account.