This article about investing in dollar mutual funds covers:
- What a Eurobond is
- How to receive returns from your dollar mutual fund investment
- How to set up a Nigerian Eurobond investment plan
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 payback 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.
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 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 countries 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 two ways you can earn returns from your dollar investments:
- The first is the returns/interests on the Eurobond which is credited to your Cowrywise Stash annually. On Cowrywise, we show you the Year to Date (YTD) performance of the funds. This is the amount of 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.
- The second way to earn returns from your dollar mutual investment 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 N500+ to $1 now as of August 2021. 🚀
How to set up a Nigerian Eurobond investment plan
- Download the latest version of the Cowrywise app on Playstore or Appstore.
- Signup and create a free account. Already have an account? Login here.
- Tap the “Actions” tab, followed by “Invest in Mutual Funds”.
- Tap “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. 😉)