Kenya's investment landscape, offers different categories of Investment opportunities ranging from Traditional assets to modern alternatives that one can invest in Directly or Indirectly.
Traditional investments, involve putting capital into well-known assets that are sometimes referred to as public-market investments. They include Equities, Fixed Income and Mutual Funds/Units Funds.
Alternative Investments on the other hand are outside the conventional investment types. The most common alternative investments today are Real Estate, Private Equity and Exchange traded funds. In Real Estate, investors invest in property and land while Private Equity involves buying shares in companies that are not listed on a public exchange or buying shares of public companies with the intent to make them private.
Below, in detail are the various types of investments in both the traditional and alternative investments category :
Traditional Investments.
This category of investments are well known and easy to understand as updated information is easily available to investors. The main categories of traditional investment products include:
Equities – Equities represent ownership interest in a company and is considered to be relatively liquid and highly volatile. The returns from equities are in two forms
i) Capital appreciation -this is when you sale the security at a higher price than the original purchase price.
ii) Dividends which is when listed companies offer cash compensation to equities investors.
Investments in equities are largely for medium to long term investments as they come with some level of volatility.