When it comes to investing, one key principle remains true: the higher the risk, the higher the potential return — and vice versa.
Let’s bring this home with a simple example — currency risk.
Over the past few weeks, the exchange rate has remained relatively stable, hovering below ₦1,400 to $1. Meanwhile, the average return on dollar mutual funds has been around 5–7%, while naira mutual funds still offer much higher yields of about 18%.
Now, here’s the real question:
Would you prefer to invest in naira mutual funds, enjoy higher returns but take on local currency risk,
or
Play it safe with dollar mutual funds, earn a lower return but enjoy currency stability?
There’s no one-size-fits-all answer, it depends on your risk appetite, financial goals, and investment horizon.
At ThrivePath Advisory, we help you make sense of these choices so your money works smarter for you.