Investing is one of the basic ways to maintain a satisfactory financial life. As the world is rapidly evolving and literally everything is going digital, investment platforms are not left out of this.
Investment platforms simply enable you to buy and sell investments, while digital investment platforms are digital remedies that incorporate automated financial and business management functions with the human touch where needed, to allow customers to save and invest money in stocks, shares, investment funds and make more of their money.
Prominent examples of digital investment platforms are:
Piggyvest; A digital investment platform in Nigeria that allows for saving and investing.
Crowley, a digital investment platform very similar to the piggy vest, for saving and investing also.
Rise vest ; A digital investment platform with categories of products you can invest in, which includes stocks, real estate and fixed income.
Investment One: This is a digital investment platform controlled by Guarantee Trust Bank in Nigeria. It offers various financial services, including investing.
Digital Investment Platforms come with their pros and cons. It’s a normal thing for every advantageous thing to have its disadvantages. However, the advantages are more than the disadvantages.
Advantages of digital investment platforms include:
Track Your Investments
Digital Investment platforms bring you the access of seeing how much you’ve invested so far, how many returns are expected, and how long it will take to get your returns.
Manage Your Financial Assets And Properties
Digital investment platforms help you to manage your financial assets well.
Promote Investment Opportunities As An Investment Company
Usually, certain investment platforms give a whole lot of consideration to you as an investor and out of that, they present you with amazing investment opportunities.
Protect You From Being Scammed
Digital Investment Platforms have various features put in place to avoid being scammed and to also avoid anyone other than you having access to your account.
Reinvest Your Dividends Or Other Income To Purchase Additional Shares
Through digital investment platforms, dividends or other income to purchase additional shares can be reinvested.
Control And Regulate Your Investments Without Physical Appointments
This happens to be the most interesting thing about digital investment platforms. You don’t have to meet officials in charge physically yet you’re assured of your investment being under control.
Access online tools.
The disadvantages include;
Time Consumption
Investment is generally time-consuming as there are lots of formalities and procedures to it.
Inefficient Tax Payments
Taxes paid in investments are most times mutual funds from capital gains, which makes payment of taxes inefficient.
Decrease In Investment Value
This is one major disadvantage of digital investment platforms. There are chances that investment value will fall.
I remember having to invest in dollars from Nigeria in one of the digital investment platforms with a ray of hope that the value of Naira would drop and that would bring about an increase in my returns.
Alas, Naira’s value increased as opposed to my expectations, bringing me a less return than my investment.
No Personal Relationships With Other Investors
In as much as not having physical appointments comes as an advantage, the absence of personal relationships with investors is somewhat disadvantageous in some cases.
There Is A Tendency For Machine Error
Since digital investment platforms operate via software, there have been cases of machine errors.
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