DAR ES SALAAM: INVESTING offers individuals an opportunity to grow wealth, earn additional income and secure their financial future beyond monthly salaries, according to a financial market expert.
Manager of Research and Analytics at Vertex International Securities, Mr Frank Abel, said yesterday that investing in assets that generate income or appreciate in value could help individuals meet future expenses, prepare for retirement and reduce dependence on employment income.
He said investment options include government and corporate bonds, shares, collective investment schemes and real estate, each offering different potential returns and levels of risk.
Bonds may provide regular interest payments, while shares can generate dividends and appreciate in value.
Property can also generate rental income, depending on market conditions and management costs.
Mr Abel said disciplined investing could help individuals build financial resilience and prepare for unexpected expenses or changes in employment.
However, investment returns are not guaranteed, as performance depends on market conditions, investment type, fees and associated risks.
He advised investors to understand available products before committing their money. Individuals should set clear financial goals, select investments that match their needs and risk tolerance, and diversify their portfolios to reduce exposure to losses.
Investing does not necessarily require substantial capital, as some regulated products allow people to start with small amounts and increase their contributions as their financial capacity improves.
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On his part, Alpha Capital Chief Executive Officer Gerase Kamugisha said strong securities market performance could boost investor confidence, encourage savings and expand access to capital for businesses seeking to grow.
He said rising market valuations could attract domestic and international investors, increase participation in financial markets and create opportunities for companies to raise funds through shares and other capital market instruments.
According to Mr Kamugisha, greater participation in the securities market can help individuals diversify their investments and build long-term wealth while channelling domestic resources towards productive activities.
He added that expanding market activity creates opportunities for stockbrokers, investment managers, custodians, financial analysts and financial technology providers.
Growing demand for these services can support employment, improve market efficiency and encourage innovation across the financial sector.
For Tanzania, Mr Kamugisha said the priority was to translate investor confidence into broader market participation and increased financing for productive enterprises.