This tweet remains one of my highlights of working at Cowrywise. 🤩
I do not remember everything I was doing at the age of 19, but I do remember that I hadn’t begun investing. If I had, I’ll have had many years of compound interest already working for me by now.
When Chiagoziem becomes say 60 years old and if she sticks to the habit of investing, it is likely that she’ll remember where it all started – on Cowrywise.
Before we break down the Cowrywise Investment plans available, I’ll like to tell you a story.
The canopy story
It was towards the end of December 2016 and I was checking my phone when I saw some news that shocked me. I remember exactly where I was standing, it was under an orange canopy and I was with my friend.
A popular “investment” scheme called MMM, which was actually a Ponzi scheme had just crumbled and the founders could not be found.
It felt impossible! I had been advised by a few friends to put money into this scheme but because I am wary of things that look too good to be true, I refused. However, this news was still bad news on all levels! I knew people who had put in their life savings and were expecting to withdraw double the funds they “invested” for Christmas break.
Till now, I remember how miserable I felt, even though I did not have a dime in the Ponzi scheme.
Now, imagine how those who put in money must have felt that December. It is likely that they had a very tragic Christmas break. Ponzi schemes don’t harm only those who put in funds, they also harm their loved ones.
Ponzi – a form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.OxfordLanguages
If Ponzi schemes aren’t investments, then what are investments?
- Investments are legitimate
- An investment is an asset that generates an increase in value over a period of time. The time factor is critical in determining what is an investment and what is Ponzi
- They require you to sacrifice some form of present asset, e.g. money, effort or time
Now that that’s out of the way, let’s dive in.
Cowrywise Investment Plans – 31 mutual funds you can take advantage of
Cowrywise Investment plans are easy to access and there are 31 plans you can take advantage of right now. These investment plans will help you begin your wealth-creation journey if you haven’t started yet.
At this time, the Cowrywise investment plans available are all mutual funds. The beauty of this type of investment is that it allows you to start now, and go at your own pace while you continue to grow your portfolio.
Mutual Fund: A kind of investment that allows retail investors to pool funds together to invest in a diversified portfolio.Ope from Cowrywise
In Nigeria, before we had investments like mutual funds, it was hard for anyone to access and enjoy investment opportunities. This was because investments used to be very capital intensive, meaning that if you didn’t have millions and sometimes even billions of naira, you were automatically left out.
The three categories of Cowrywise Investments
These mutual fund investments are categorized into conservative, moderate and aggressive funds.
These have fixed annual returns like 10% P.A. which means someone who invests N1M in a conservative fund with 10% returns will have N1.1M at the end of one year. These are suitable for people investing for the first time and they comprise low-risk instruments like bonds, money market funds, treasury bills and other low-risk investments.
As the name suggests, consists of a mix of low-risk and high-risk instruments like bonds, fixed-term investments, cash, stocks and corporate bonds. Unlike conservative funds, moderate funds do not have fixed annual returns. Investors earn through capital appreciation. This means that if you buy say 10 units of a moderate fund for N1000 each and it starts selling at N1100 after a few weeks, your investment has grown by N100 on each unit. Get it?
These consist of mostly high-risk instruments like stocks. These are suitable for people who have been investing for a while and do not mind the volatile nature of aggressive funds. Investors here earn returns from capital appreciation, as is also the case with moderate funds.
Which Cowrywise Investment is best for you?
We always advise that first-time investors take a risk assessment test before investing. This gives a clear idea of the type of risk you’re willing to take on with your investments.
Conservative funds are suitable for people with a low-risk investment appetite.
Moderate funds are best for those with a balance of low and high-risk appetites.
While aggressive funds are appropriate for people willing to invest in volatile markets.
For an accurate answer on which Cowrywise Investment is best for you, take the risk assessment test.
Is there a limit to how much you can invest on Cowrywise?
Hello to the 30 billion gang. There’s none, you can invest as much as you’re comfortable with.
I hear Cowrywise has locked plans, are Cowrywise Investment Plans locked as well?
There are no locked investment plans on Cowrywise. You can sell your units at any time, however, that’ll not be beneficial to you if your goal is to build wealth for the long term.
Do I need to pay to take advantage of these investments on Cowrywise?
You’ll be charged only a processing fee of 1.5%, which is capped at N2,000 on naira mutual funds. This means that your processing fee cannot exceed N2,000 on any naira mutual fund even when 1.5% of an investment you want to purchase exceeds it.
What other types of Cowrywise Investments are there?
We’re working on additional investment options on the app.
Want to be among the first to know when these are available?
Then sign up now.
Watch this for more info on mutual funds👇🏽