Receiving e-mails and comments from readers is the most rewarding part of my day. I’m delighted to know that people are coming with me on my journey to study and make the right financial decisions. The most popular question I get asked is which financial institution to invest in. In this post I will try to answer that question.

Let’s start by addressing the elephant in the room – financial institutions in Ghana have been facing lots of challenges in the past 5 years. We have witnessed the collapse of non-bank financial institutions (NBFI) that were offering mouthwatering returns and the revocation of licenses of some Ghanaian banks. These incidents have raised the stakes of investing and contributed to a lack of confidence in domestic financial institutions.

One cannot disregard the risks associated with investing in such a climate, but I do not believe the risks are enough to warrant a total boycott of the sector. There are reputable institutions offering good financial products that will make many portfolios better. So this is not the time to shun investing, it is the time for making an informed decision about where to invest.

Before deciding where to invest, you must first determine WHAT to invest in. How do you determine what to invest in? You need to be clear about your investment goals. Are you looking to invest for 1 year, 5 years or 10 years? How much risk are you willing to tolerate? How likely is it that you may need to withdraw your money before the investment matures? Your answers to these questions will determine the right financial instrument or collection of instruments for you.

For long-term investments, collective investment schemes like mutual funds are usually recommended. If you prefer short-term, low return but easy access to your money when you need it, then treasury bills are the way to go. And if you are willing to tolerate more risk for a higher return, then fixed deposits are the instruments for you. After you’ve taken the time to decide which financial instruments are right for your investment goals then you can now research on which financial institutions offer those instruments.

There is a convenient tool for finding financial institutions and their products, it’s called Westcape.co. The website offers you a range of different financial institutions and their products. Apart from conveniently presenting that information, Westcape also allows you to invest in the product right on the website.

If you’re ready to find a financial institution, why don’t you check out Westcape? Take the time to find out which of the institutions offer the services you are looking for and then make your decision based on the information on returns and other terms that the website offers. Try it out today and let me know how it works for you.

This post is sponsored by Westcape Marketplace. Westcape Marketspace is a financial data aggregation website that enables you to compare and access loan and investment services without going to any bank.