Analysis of investment options in Uganda

Abstract

The project “Analysis of Investment Options in Uganda” gives the brief idea regarding the various investment options that are prevailing in the financial markets in Uganda. With lots of investment options like Company Equity Stocks, Mutual Funds, Treasury Bills, Bonds, Insurance, Real Estate and Provident funds, the Ugandan investment atmosphere seems to emphasize and favor investment in real assets and little is known or said about investment in the financial assets. This research was done using both secondary and primary data to identify the various investment options in Uganda, analyze each investment option in Uganda and identify the factors that affect choice of investment options in Uganda. The information evidenced by the NSSF annual reports indicates that the managed Fund takes more informed investment decisions as opposed to most Ugandans who possess little or no knowledge of the various investment options in the country. The study revealed that majority of the people in Uganda know very little on investment options but could use financial guidance to identify what kind of investment to take on. The findings emphasize the need to access financial education services on the available investment options in Uganda, this is one of the major steps that will boost investment in the available investment options like Mutual funds and provident funds which are least known by the respondents. Real Estate is one of the most preferred option that gives more returns than the rest of the options because it is less risky, sure to break even and make profits. This could also apply to the rest of the options like Company Equity Stocks and Treasury Bills but the high risks involved and knowledge do not favor them as a preference over Real Estate. One of the major recommendations is that people get more awareness and knowledgeable on the available investment options especially in terms of returns and risk through various investment entities like the Uganda Investment Authority (UIA) by carrying out free or affordable investment conferences not only for foreigners but for the locals as well.