TREASURY BILLS are short-term debt securities maturing in one year and below issued by the Federal Government of Nigeria, through the Central Bank of Nigeria to provide short-term funding for government budget deficit. They are sold at a discount (returns received at the beginning of investing) and redeemed at par(The face value of the investment is what is gotten back).
Treasury bills in Nigeria can be purchased at the Primary Market (minimum investment of 50 million naira) and Secondary market (minimum investment of 5000 naira)
Treasury bills (TB) is the proxy for risk free investment; your investment is always guaranteed and secured but mutual fund on the other hand is a pool of funds (people putting fund together for investment purposes) which can either be invested in TB (risk free) or any other risky assets like stocks.
Treasury bills over mutual funds for me. Treaury bills are auctioned twice in a month. Which means you can re-invest your profit every two two weeks.
So the returns you get in a year for treasury bills will be greater than that of mutual funds. Also, don't forget that treasury bills are tax free and are also backed by the full faith of the Federal Government.
Another way to look at it is to consider or think of the reasons why banks prefer investing their funds in treasury bills.
TREASURY BILLS are short-term debt securities maturing in one year and below issued by the Federal Government of Nigeria, through the Central Bank of Nigeria to provide short-term funding for government budget deficit. They are sold at a discount (returns received at the beginning of investing) and redeemed at par(The face value of the investment is what is gotten back). Treasury bills in Nigeria can be purchased at the Primary Market (minimum investment of 50 million naira) and Secondary market (minimum investment of 5000 naira)
Treasury bills (TB) is the proxy for risk free investment; your investment is always guaranteed and secured but mutual fund on the other hand is a pool of funds (people putting fund together for investment purposes) which can either be invested in TB (risk free) or any other risky assets like stocks.
Treasury bills over mutual funds for me. Treaury bills are auctioned twice in a month. Which means you can re-invest your profit every two two weeks. So the returns you get in a year for treasury bills will be greater than that of mutual funds. Also, don't forget that treasury bills are tax free and are also backed by the full faith of the Federal Government. Another way to look at it is to consider or think of the reasons why banks prefer investing their funds in treasury bills.