Joshua Masinde: Many retail investors are often confused on where to pump their money in the financial markets.

However, one thing is always clear; their intent is to invest in gainful ventures. However, the challenge is how to get started, what to look out for, the risks and returns of available investment options.

The financial markets has a number of investment options that can be of interest to retail investors depending on their risk appetites, how much money they are ready or willing to invest and for how long they are ready to wait for returns.

Shares and bonds are the most common investment options in Kenya’s capital markets, so investors are often limited to the two.

Government bonds and corporate bonds bear a fixed return and are less risky compared to shares or equities, which have no fixed return but the gain depends on how they perform in the stock market.

Risk-averse

According to Old Mutual research analyst, Mr Eric Munywoki, bonds are good for the risk-averse investors seeking a fixed return on their investment over a given period. Equities on the other hand are high risk, high return.

“With shares, you can get better returns if you put your money in a company that has a high potential for growth compared to when you put your money in say, Treasury Bills,” Mr Munywoki says.

Returns on shares are not fixed or guaranteed so the investor typically has to have a high-risk appetite and hold the stock over the long-term.

Like investment bankers, advisers or stock brokers say, investing in the stock market should not be a short-term affair if an investor is keen on reaping higher capital gains.

Purchase of shares means that the investor owns a portion of the firm and they can benefit from capital gains or dividend, which is a fraction of the profits.

Investing in bonds simply means an investor advancing credit to an issuer and returns are fixed and guaranteed.

The investor does not have any voting rights in the firm he or she has lent money and does not benefit in any way from exceptional performance of the company.

The investor may choose to buy the shares or bonds in the primary market when firms are offering them for the first time or in the secondary market, when one buys them from another investor.

Bond holders are paid a certain percentage as interest on their money. They are also paid back the original amount that they lent to the company at the expiry of the bond tenure.

Most of the corporate bonds issued by firms this year have typically attracted yields averaging between 12 per cent and 13 per cent. NIC Bank, Diamond Trust Bank, UAP Group and Britam issued corporate bonds this year, which attracted high investor participation. The government securities on the other hand have returns of between eight per cent and 12 per cent this year.

The stock market has registered some of the highest returns on investments this year with Unga Group, Limuru Tea, Kakuzi and Longhorn shares making gains of over 100 per cent between January and November 2014.

Some analysts say that Kenyan capital markets have very few options for prospective retail investors. Some of the other forms of investment options expected to be introduced in the capital markers, which investors can take advantage of include municipal bonds and the Real Estate Investment Trusts (REITS).

Best returns

“The universe of investments is unlikely to change much unless we see new products in the market such as REITS. The challenge will be trying to figure out where the best returns can be made.

Clearly, if one gets promised a very good return for an investment, then probably the risk being taken is also higher,” said Eric Musau, a research analyst at the Standard Investment Bank.

Unit trusts, a form of collective investment schemes, can also provide small investors with access to professionally managed, diversified portfolios of assets.

The popularity of unit trust is not comparable to that of bonds and equities, but the Capital Markets Authority says their acceptance and popularity continues to grow.

They are typically a small investor’s answer in achieving wide investment diversification without the need of large sums of money.

“As a market becomes sophisticated and more volatile, unit trusts become safe havens for less sophisticated and less capitalised, conservative individuals in the market place,” says the markets regulator.

A number of the risks that investors should be wary of include political climate, exchange rate, inflation, currency, insecurity, current account and budget deficits, which affect the returns on investments.

Successful couples constantly reach out to each other to stay connected — with glances, smiles, touches, cups of tea, nudges, kisses and secret looks of amusement about the people around them.

Or remarks like “How was work today?” “That was delicious!” “What are you thinking?” “Are you upset about something?”

These little gestures, comments and questions really keep your relationship alive.

Psychologists call them “bids for emotional connection,” and happy couples make hundreds of them every day: “Did you hear about…” “You’ll never guess what happened…”

They show you care about each other, and are actually far more important than what you’re really doing together!

And yet we’re mostly unaware of making them.

What’s wanted, of course, is a positive response: “Do tell me!” Not a brush off:  “Don’t bother me, I’m busy…” Or no response at all, like a go-away grunt.

RESPOND ENTHUSIATICALLY

Because if you don’t respond enthusiastically, sooner of later your partner will stop approaching you.

And start snapping or sulking instead. And so your relationship slowly unwinds.

And you both start feeling lonely, wondering how you got there.

You got there by rejecting each other’s bids for emotional connection.

Does that mean you should always respond positively?

Of course you should! But it’s not easy if you don’t feel in the mood.

Or maybe your partner’s being too demanding. Or not taking account of what you’re doing.

You could try saying something like, “I’m sorry I’m such lousy company right now — I’m just so stressed…” but even that’s difficult in the heat of the moment.

It’s simpler to go back later and say “I’m sorry I’ve been so irritable lately…” Or “I was so busy last night I hardly even said hello when you came in…”

At least that way you’re making amends for hurting your partner.

TALK INTIMATELY

And talking intimately about not having been intimate together, which is actually a surprisingly good way to get closer.

Another problem is “fuzzy bidding.” Imagine having this conversation with a friend: “Let’s have coffee sometime.” “Good idea, but right now I’m just too busy.” “Of course, I understand. You’ll call me?” “Sure!”

Of course, you never get the call.

Which makes you wonder whether they really are that busy, or just avoiding you.

A better ending goes like this “…I’m just too busy.” “I do understand.

Do you know when you’ll be free?” “Let’s see — how about Saturday morning?” “Great, see you then!”

No dancing round the issue — a straight answer, right there.

OK, you could get hurt by a definite rejection.

But at least there’s no more uncertainty.

Avoiding being fuzzy is a really good idea.

Being perfectly clear about what you want — and asking for it. Precisely.

More often than not, you’ll be successful, and will be even more confident next time!

And ask yourself whether you’re connecting with your partner often enough.

Remember, successful couples do it hundreds of times a day!

Kevin Roberts is the global CEO of advertising giant Saatchi & Saatchi.

“You must believe that the further up a company you go, the more stupid you become,” says Roberts. “As the CEO, your job as the leader is to create leaders. For God’s sake, stop taking decisions away from others.”

People who should be making decisions for your company are not in cushy offices but rather on the front line — the people who are interacting most intimately with your consumers and who understand, firsthand, what goes into the day-to-day labours that make your company tick.

The word employee seems demeaning to Roberts. He thinks of the people who work at Saatchi & Saatchi as teammates, or his “people.”

“To sustain a company, you have got to have leaders at every level of that company, not just Steve Jobs or Richard Branson,” says Roberts. “A leader for us is someone who inspires everyone they touch to be the best they can be.”

Are you a boss managing your employees, or are you a leader coaching your team?

[Original:entrepreneur] 

Miss South Africa Rolene Strauss was crowned Miss World on Sunday in a competition in London.

“South Africa, this is for you,” she said in an interview after the pageant. “I’m so proud of you, and I’m proud to be your representative.”

Strauss, 22, inherited the crown from Miss World 2013, Megan Young of the Philippines. She won the title over runner-up Miss Hungary Edina Kulcsar. Miss United States Elizabeth Safrit took third place.

Strauss, a fourth-year medical student at University of the Free State, put her studies on hold after being crowned Miss South Africa in March. In her official Miss World 2014 introduction video, she credits former South African President Nelson Mandela with paving the way for her to pursue a career in medicine by creating a democratic South Africa.

Strauss said she looked forward to continuing the legacy of Miss World CEO Julia Morley, founder of “Beauty With a Purpose,” a nonprofit that supports humanitarian projects of Miss World contestants.

Those who participate in a charitable contest or cause through the organization compete for the “Beauty With a Purpose” award, winning points toward their final score.

The focus on charitable acts helps counter criticism that the pageant promotes superficial images of women through swimsuit competitions and slinky evening gowns. As Miss South Africa, Strauss has promoted projects in women’s rights, health and education, including one to provide menstruation education to schoolgirls in South Africa.