Cowrywise: How to Invest in Top Mutual Funds in Nigeria

One of the major factor to attain financial freedom is Investment, while savings help you prepare for state of emergency. Your Investments are major lift that can push you up the ladder. Many financial institutions know how useful Investment is and that's why savings apps like OPay, Piggyvest and Cowrywise have included Investment in their services or mobile apps.

In this article,I have discussed Cowrywise Investment Option, also known as Mutual Funds. Here, you will learn what it means, how it works and how you can start investing in Cowrywise Mutual Funds.

What is Mutual Fund?

A mutual fund is a type of financial tools that pools money from various investors to invest in asset like stocks, bonds, treasure bills, real estate and other money market instruments. Mutual Funds is best defined as a professional money manager who generate gain or income from investors money.

Key Points

• A Mutual Fund is a type of investment tools consisting of portfolio of digital asset like stocks and bonds.
• Mutual Fund gives investors opportunity to diversified or professionally manage the asset at low price.
• Mutual funds are classified into various kinds of categories or groups, representing the kinds of securities they invest in, their investment objectives, and the type of returns they expect.
• Mutual Fund charge annul fees or commission called (expense ratio) which can actually affect their overall returns.
• Lastly, the overwhelming majority of money in employer-sponsored retirement plans goes into mutual funds.
• To invest in Mutual Fund, you will need an asset management company like Cowrywise.
• Mutual Fund returns are earned in form of interest or capital gain.

Now that you've understand Mutual Fund and its key points or principle, let dive into what Mutual Fund do.

How does Cowrywise Mutual Fund works?

Cowrywise Mutual Fund works in such a way that it provides users with two broad classes of mutual funds.

1. The Naira Mutual Funds
2. Dollar Mutual Funds

The Naira Mutual Funds have alot of options to select from, while the dollar mutual funds is limited. 

The Naira Mutual Funds are classified into three main categories, they re;

1. The Conservative
2. Moderate and 
3. Aggressive

These are all based on an investor’s risk appetite. Like the name implies, conservative means low-risk while investors in the aggressive stage are on the high-risk high-reward basis. 

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Meanwhile, Dollar mutual funds have only moderate investment options. However, If you’re unsure about what your risk level is or what type of mutual fund to invest in, you can take a quick quiz on the app. Your results will then refer you to the type of funds to purchase. Also, you can always learn more about each fund by tapping on the ‘learn more about this fund’ link.

Also, you can claim your investment anytime by selling your units of whatever fund you purchase. The money will be deposited into your ‘Stash’ (Cowrywise wallet), and then you can withdraw it into your Nigeria bank account at anytime.

Now moving to fund your wallet and start investing.

How to fund your CowryWise Mutual Fund Wallet.

To begin Investing with Mutual Funds on Cowrywise, follow the below step by step guides.

• First of all, Login to your CowryWise Account. Or create an account here if you haven't.
• Click on Plan and select Investment at the top right corner of your screen.
• Click on Start Investing and choose between the Naira Fund or Dollar Fund.
• Choose your Preferred fund from the list options.
• Choose the amount you would love to buy and click on INVEST NOW
• Re-check your order and choose your preferred payment methods.
• Review your order again and click on PAY (XXX).
• When the payment has been successfully completed, your plan will automatically set up and credited.

NOTE: You can either by doing bank transfer, or from Cowrywise wallet (Stash), or using a debit card, that's if you added one. And for bank transfer, you will be provided with account details to deposit the money and you will need to provide proof of payment for confirmation.

Additionally, the actual units of mutual fund you bought will be determined 1 to 2 working days. And there is an additional processing fees of 1.5 percent of your investments amount.

Thanks for reading my article on Mutual Funds, pls share your own thoughts about your Investment.