(DDM) – As inflation in Nigeria drops to 20.12 percent, financial experts are advising investors to adopt a balanced portfolio strategy to maximize returns in the fourth quarter of 2025.
Diaspora Digital Media (DDM) gathered that with the economy showing signs of stability, many Nigerians are now asking where best to invest ₦1 million before year-end to preserve value and achieve real growth.
According to investment analysts, the smartest approach is to diversify across multiple asset classes, balancing risk and reward in line with current market conditions.
They recommend that investors allocate 60 percent of their funds to dividend-paying equities, 25 percent to fixed-income instruments, and the remaining 15 percent to alternative assets such as gold or Real Estate Investment Trusts (REITs).
The experts explained that as interest rates ease and corporate earnings continue to rebound, the Nigerian equities market is becoming more attractive for medium- to long-term investors seeking capital appreciation and steady dividend income.
They also noted that blue-chip stocks in sectors such as banking, telecommunications, and consumer goods remain the most promising, given their strong fundamentals and resilience amid recent economic volatility.
Diaspora Digital Media (DDM) learned that fixed-income funds, including treasury bills, FGN savings bonds, and corporate debt instruments, offer safer returns and help cushion portfolio risks, especially for conservative investors.
Financial strategist, Chuka Okonkwo, told DDM that the combination of equities and fixed-income assets provides a hedge against inflation while ensuring liquidity and consistent income flow.
He added that alternative assets such as gold, real estate, and digital investment vehicles like REITs are ideal for protecting wealth against market shocks and currency depreciation.
Analysts emphasized that diversification remains the most critical rule for investors in uncertain economic periods, noting that spreading funds across multiple assets helps minimize exposure to losses while taking advantage of emerging opportunities.
They advised investors to avoid speculative short-term trades and focus instead on stable, income-generating ventures with clear growth potential.
Experts further highlighted that Nigeria’s capital market performance in the last two quarters of 2025 has shown encouraging signs of recovery, driven by renewed investor confidence and easing fiscal pressures.
Diaspora Digital Media (DDM) reports that the Central Bank’s recent measures to stabilize the naira and reduce inflation have contributed to improved market outlooks, spurring optimism among portfolio managers and individual investors alike.
Economists predict that the fourth quarter could see moderate growth in the equities market as listed firms begin to release stronger earnings reports and distribute dividends ahead of the 2026 fiscal year.
However, they caution that investors should monitor macroeconomic indicators, global oil prices, and exchange rate trends that could influence local investment performance.
Overall, the consensus among experts is clear: a well-diversified portfolio, mixing equities, bonds, and alternative assets, remains the safest and most rewarding way for Nigerians to grow ₦1 million in Q4 2025.
By maintaining discipline, patience, and smart allocation, investors can turn inflation challenges into profitable opportunities before the year closes.
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