How To Invest In Eurobond Funds In Nigeria

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This article about investing in dollar mutual funds covers:

  1. What a Eurobond is
  2. How to receive returns from your dollar mutual fund investment
  3. How to invest in Eurobonds in Nigeria

Many people have searched for ways to invest in dollar mutual funds and have been unable to find any to invest in. Cowrywise realised there was a need for this investment option and decided to bridge the gap. It is now super easy for you to invest in dollar mutual funds. This short guide shows you how to get started and highlights all you need to know about it.

What is a Eurobond fund?

This is a type of mutual fund that invests in Dollar-denominated bonds. Bonds? Wait first, what are those?

What is a bond?

A bond is a lending/borrowing agreement between two parties. It’s like having a friend borrow from you and pay back with a set interest rate. This means a government bond is simply the government borrowing money from the public with the agreement to pay back with interests.

Learn more about bonds.

Why is it called a (£) Eurobond if it’s in Dollars?

Eurobonds are bonds that are issued in international currencies – currencies different from the host country’s currency. For example, the Nigerian government can issue a bond to foreign investors that allows them to lend the Nigerian government money in dollars and not Naira.

Eurobonds is like saving your money in dollars by lending to companies or the government. They then invest it and pay you your return in dollars.

While Eurobond Funds allow you to invest in dollar-denominated Eurobonds using your country’s currency: the Nigerian Naira.

How do you receive returns from your dollar mutual fund investment?

You’ve made the smart decision to invest in the Eurobond Funds on Cowrywise. What’s next? Earning your returns, duh! 🤑

There are 3 ways you can earn returns from your dollar investments:

  • Dividends: Not all dollar funds pay out dividends. For those that do, the payout schedule can be annual or bi-annual. Based on your settings, we pay out to your Stash or auto-reinvest the returns on the Eurobond. On Cowrywise, we show you the Year to Date (YTD) performance of the funds. This is the returns the investment has earned from Jan 1 of the current year till the current date. It is not a guarantee of what the eventual returns might be.
  • Capital appreciation: This has to do with appreciation of the price of the fund. For instance, if you bought at $10 per unit and it’s now $12 per unit, you’ve made positive returns on your investment.
  • Currency appreciation: This is from the change in the value of the Naira per USD. Imagine you invested in Eurobonds when they were N350 to $1, you’ll be earning returns with an exchange rate of N730 to $1 now as of October 2022. 🚀
dollar mutual funds

How to invest in Eurobonds in Nigeria

  1. Download the latest version of the Cowrywise app on Playstore or Appstore.
  2. Signup and create a free account. Already have an account? Login here.
  3. Tap the “Invest” tab, followed by “Create a new investment”.
  4. Choose “Dollar mutual funds” and Invest in your preferred option.

We made sure that your journey to building your wealth in other currencies is just as seamless as you want it. Start investing today.

How much can you start with?

You can start investing in the Eurobonds available on Cowrywise right now with as low as $10 (the naira equivalent), The exchange rate is determined by the current market performance and Cowrywise almost always has better exchange rates for you. (Don’t tell anyone I told you that. 😉)


How to Save and Invest in Dollars on Cowrywise

Mutual Funds for Beginners

How to Invest in Managed Portfolio on Cowrywise

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