Ghanaian investors are being advised to begin their wealth-building journey with low-risk financial instruments such as treasury bills and money market funds, as financial analysts warn that inflation and poor investment choices continue to erode savings value.
According to market players, starting at the safest level not only protects capital but also helps new investors understand the fundamentals of wealth creation before moving into higher-risk assets such as equities and bonds.
The guidance comes amid growing public interest in investment products across Ghana’s financial sector.
Speaking on the on-air series of the 2026 Citi Business Festival with Nii Larte Lartey, the Senior Dealer, Global Financial Markets, Absa Bank Ghana LTD, Samuel Freitas, outlined what he described as the safest entry points for first-time investors, stressing discipline and risk awareness.
He explained that beginners should “start where the risk is the lowest,” adding that treasury bills and money market funds remain the most suitable starting options for individuals new to investing.
“For a start, I typically advise that you start with maybe Treasury bill and then what we call the money market funds. You have to start where the risk is the lowest,” he said, noting that government-backed instruments offer predictable returns and liquidity.
On the distinction between savings and investment, he noted that while savings preserve money, investment makes it productive. “Putting money away for future use is savings. Investment, on the other hand, is making sure that the money that you’ve put away is being put to work to generate some form of return,” he explained.
He further cautioned that inflation remains a key risk to savings, warning that idle cash loses value over time. “If you’re not investing, inflation should eat part of the value of that money,” he said, adding that individuals must aim to preserve purchasing power.
On regulation and investor protection, he advised the public to verify institutions before committing funds, stressing that credible investment firms are listed by regulators.
He also warned against unrealistic returns, noting that “no regulated investment house will give you 100 percent over a month,” describing such offers as red flags.
Freitas further emphasised diversification as a core investment principle, saying investors should avoid concentrating funds in a single asset class. “You can’t always put all your eggs in one basket,” he said, adding that spreading investments helps cushion against market shocks.
He also linked investment choices to age and income stability, noting that younger investors can take higher risks while older individuals should prioritise liquidity and capital preservation.
The 2026 Citi Business Festival is powered by 97.3 Citi FM and Channel One TV in partnership with Absa Bank and sponsored by Absa Bank, MTN, Zonda Tec Ghana Limited and Petra Trust.
