From UGX 50 Million to UGX 400 Million in 10 Years with Treasury Bonds.
January 11, 2024
On the 24th day of January in 2024, the Bank of Uganda intends to auction off a 10-year Treasury bond coded UG12K0302337. This is a lucrative chance to invest in Capital Markets and grow your wealth. This bond, with its promising 14.375% rate, is likely to yield a robust return of over 15% on 25th January 2024.
Investing in Treasury bonds is a wise and investment diversification strategy to multiply your earnings using a low-risk mechanism with minimal intervention. With a starting capital of just UGX 1 Million, you can invest in these bonds and start to earn stable and solid returns of 14.375% annually in this tenor Bond. For tax clarity, kindly note that these bonds only attract a 10% Withholding tax on all interest incomes.
Imagine you have UGX 25 million idle in your bank. If you were to invest this sum in the 10-year Treasury bond, it could yield around 13% return each year, which translates to UGX 3.2 million after tax. If you reinvest this earning at a consistent rate of 14.375%, through the wonder of compounding interest, your bond could grow to roughly UGX 86 million by 2033.
Let's take it a step further. Imagine that you add UGX 5 million to your bond portfolio annually. This approach could balloon your bond value from UGX 25 Million to over UGX 200 million at the end of 9 years in 2023. Not many investment options in Uganda can yield such remarkable returns over an extended period, particularly with the low risk involved with Treasury bonds.
For those with larger capital, let's say UGX 50 million. Investing this amount in the bond could earn you a net income of about UGX 6.4 million yearly. Reinvesting this profit back into the bond could increase your earnings to about UGX 170 million by bond maturity in 2033. This investment thrives on long-term discipline.
And the profit can even quadruple. Starting with UGX 50 million, and then adding an extra UGX 10 million annually could explode your bond portfolio from the initial UGX 50 million to an impressive UGX 400 Million after tax on maturity in 2033.
If you have a CSD Account and are keen to expand your bond portfolio, let your custodial commercial bank know to initiate the process. Fill the CSD Form 2 to participate in the auction.
If you're an investor after stability and long-term returns, they are your go-to. Here's to your investment journey and financial growth. Cheers to wise investing!
Alex Kakande