MOTIVES OF INVESTMENTS

MOTIVES OF INVESTMENTS

No matter the form in which investment ideas are contemplated, they are under laid with fundamental beneficial or satisfying motives, which must be of advantage to the investors and promoters. These desired motives or benefits could be classified into the following:-

(a) Social Benefits;

(b) Political Benefits;

(c) Economic Benefits.

(a) SOCIAL BENEFITS:

These are benefits in kind. They do not necessarily or directly confer financial interests (Thorncroft, 1965). They are intangible to the investment promoters and may arise just to promote the social status or ego of the investor and as such amount to self-actualization of the social interest on the investors. A few examples would suffice:

(i) A government is pleased with the successful establishment of social amenities in communities. In this case the operators in government and the benefiting communities derive satisfaction from the facilities. The social image of the operators in government is thus enhanced and as such, they enjoy and wield more leadership influence.

(ii) A man who executes his marriage ceremony without problems considers this social project a success and as such derives social satisfaction from the venture.

(iii) A man who has four children and has all of them graduated from the polytechnic/university with gainful employment considers his marriage institution well blessed and successful. After all a marriage is a social relationship with benefits as an end.

POLITICAL BENEFITS:

These are also intangible benefits to the investors. They may take the form of political power being their ability to influence decisions in the communities. Such investors may occupy political positions, thus increasing their ability to wield some defined dispositions and acting as heavy weights in society.

Eminent personalities in these political positions enjoy social adulation and powerfully wield derived authority within the communities. This is often the case within the traditional political institutions such as “Oba”, “Obi”, “Chief”, “Alafin”, “Oni”, “Emir”, Obong, etc. They often exercise heavy political authorities in the administration of their domains.

There are issues everyday that are dealt with by those occupying political positions such as the president, prime minister, governors, legislator, senator and councilor. They derive political benefits from their positions.

ECONOMIC BENEFITS:

These normally take the form of tangible benefits to the investors. Economic benefits may arise in the form of:

(i) Capital gains: Here, there is capital appreciation realizable at the end of the business. The surplus capital realized enables the investor to recycle the investment if its level is attractive.

(ii) Periodic income flow: Here, the investor receives periodic income flow. This may be on daily, weekly, monthly, half-yearly or annually throughout the projects life as desired by the investor(s).

To enjoy these benefits the investor(s) adopt cost effective strategy with good management.