Here’s what this article about investing in a dollar mutual fund covers:
- What is the Nigerian Eurobond fund?
- How do you receive returns from your dollar mutual fund investment?
- How to set up a Nigerian Eurobond investment plan
Many of us have searched for ways to invest in dollar mutual funds and been unable to find any we can invest in. Cowrywise realised there was a need for this investment option and decided to bridge the gap. We made it possible and super easy for you to invest in dollar mutual funds. We’ll be showing you how to get started and all you need to know about it.
What is the Nigerian Eurobond fund?
You can currently invest in the first of our Dollar mutual funds called the United Capital Nigerian Eurobond Fund. You’re probably wondering why it’s called a Eurobond fund when it’s a dollar-based investment option. We’re here to break it down for you.
Eurobond funds are a type of bond. This type of bond is issued in the host countries currency. A great example is that the Nigerian government can issue a bond that is denominated in dollars to allow foreign investors to have access to them too.
Now you’re probably wondering what a bond is. A bond is an agreement between two different parties. Another great example is that 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 a certain interest rate.
The Nigerian Eurobond Fund is a mutual fund that allows you to invest in dollar-denominated Eurobonds using your countries currency: the Nigerian Naira. It is managed by the Federal Government of Nigeria and other domestic companies like SEPLAT, Ecobank and Firstbank.
How do you receive returns from your dollar mutual fund investment?
You’ve made the smart decision to invest in the United Capital Nigerian Eurobond Fund. What’s next? Earning your returns from your smart money move!
There are two ways you can earn returns from your investments. The first is the fixed returns on the Eurobond which is credited to your Cowrywise Stash annually. Currently, the returns sit at 8% per annum.
The second way to earn returns from your dollar mutual investment is from the change in the value of the Naira per USD. If perhaps the value of the naira drops against the USD then you gain additional returns on your investment.
How to set up a Nigerian Eurobond investment plan
- Download the latest version of the Cowrywise app on the Playstore or Appstore.
- Signup and create a free account. You can log in after this.
- Tap “Actions”, followed by “Invest in Mutual Funds”.
- Select “Nigerian Eurobond Fund” to invest in.