• Tuesday, March 19, 2024
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BusinessDay

Buy mutual funds on your phone with as low as N100

mutual funds

Prior to now, you had better be a ‘big’ serious investor, to entertain the idea of investing in a mutual fund. It was the rich men’s forte whose precious funds were handled by professional money managers who allocate the fund’s assets and attempt to produce capital gains or income for the fund’s investors.

It should be noted that a mutual fund refers to a financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets.

Entry to mutual funds market in Nigeria can go as low as N5,000 to N100,000 and N1,000,000 depending on the nature of the fund. You will also need to go through the investment arm of a bank, stock brokerage firm, investment banks etc. You will also be subjected to studying the prospectus that comes with every fund. The prospectus is usually shared with prospective investor during the initial public offering of the fund. The fund manager would also provide the factsheets on each mutual fund, periodically.

But was mutual funds meant for only some people who have the patience to go through the tedious process?

Cowrywise thinks otherwise and is proving it with a new feature on its mobile application that allows access to investing in mutual funds to everyday Nigerians. In other words, anyone can now do invest in multiple mutual funds from the comfort of their phones with as low as N100 (Hundred naira).

The best part is you do not have to deal directly with any bank or brokerage firm.

Cowrywise has partnered some of the leading investment firms like Meristem and Afrinvest and the mutual funds will invest in companies like Dangote Cement, GTBank, Nestle, Total Nigeria and high quality fixed income securities.

“We are also introducing Systematic Investment Plan,” Cowrywise said in a statement, “This plan allows Nigerians automate investment of fixed amounts into mutual funds over a period of time. This has been proven to a good strategy for beating the downsides of investing.”