CowryWise is definitely one of the smartest and easiest digital platforms where one can get their money work for them. There are rules to financial freedom, this fintech company have with time tried to sell to their customers. The three simple rules: Plan, Save, and Invest. The thing with digital financial solutions is how they have been able to reduce the complexities surrounding the financial system.
Cowrywise, from helping you with tools to plan your finances, to 10-15% interest per annum on your savings, and now, with N100, you can as while purchase mutual funds and watch returns roll in.
What are Mutual Funds?
Mutual fund is a pool of money gathered by several investors to be used to purchase and invest in securities like bonds, stocks, money market instruments. Each investor in a mutual fund proportionally shares in the gains and losses.
A typical example likened to a mutual fund is the “esusu.” In esusu, a group of individuals either family or friends, come together to pool money into a saving fund, in which each of the recipients take turns to take the pooled money every month. While in Mutual funds, small group of investors pool funds together not necessarily for saving but to be used in the purchase of securities that yield interests.
How Mutual Funds works?
Investment is a rather rare sport Nigerians don’t engage in. The complex money language is already a headache for one who is not familiar with the terms so regular to financial gurus or money managers. Less than 400, 000 Nigerians have investments in mutual funds, though it is an industry worth billions. The poor investment culture is basically because of the problem of accessibility, risk assessment, limited transparency and accountability.
But with mutual funds, it is possible for people with little or no knowledge to pool funds for investment in professionally selected assets at a very minimal cost. When you invest in mutual funds, professionals would handle the complex selection process, and manage the security risk portfolio. How you earn income from the mutual fund investment: From dividends on stocks and interest on bonds held in the fund’s portfolio;capital gain too, when the securities increase in price when being sold.
Investing in Mutual Funds Made Simpler with Cowrywise.
I remember how my Mom had to run to our Grandma’s room whenever her sister called from abroad. That is how having a phone was a luxury. Nitel before, then the purchase of expensive sim cards, now smartphones and the widespread of internet. FinTech, is an acronym for the combination of finance and technology, whose infusion is the craze of the internet age. The aim to democratize access to premium investment options by Cowrywise has led to its new developments in mutual funds. Therefore, it is now possible for everyday Nigerians to invest in multiple mutual funds with their phones as low as N100.
CowryWise in partnership with Meristem and Afrinvest have made it easy for their customers to access mutual funds on the app. The mutual funds can be invested in Total Nigeria, GTBank, Nestle, and other high quality fixed income securities.
One of the features introduced is a Systematic Investment Plan. A plan which allows Nigerians to automate fixed amounts into mutual funds over a period of time.
Furthermore, there is a risk assessment algorithm which recommends a suitable mutual fund based on your risk profile. The risk profiles include: balanced, aggressive and conservative investor. A balanced investor is a moderate risk taker, an aggressive investor is willing to take all risks, while a conservative investor considers his gains and losses equally. Based on the results, the mutual funds that best matches your profile are suggested.
Despite the rigorous processes to investment, CowryWise has enabled a seamless platform to foster participation in the capital market. Now, you can build wealth through a legitimate and professionally managed vehicle.
To start investing or saving, download CowryWise on Google play store.