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 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.
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.
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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. ?
How to invest in Eurobonds in Nigeria
- 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 “Invest” tab, followed by “Create a new investment”.
- 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. ?)
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Good evening, my question to you please if open an account today in naira his the money will converted to us dollar to running the account
If you are investing in a dollar fund, yes.
Can the funds be traded rather than investing to increase gains?
What if your money is in cash(Dollar)
Please I already have an account, will I have to re-open another account before investing in dollar?
Can I invest in the next eurobond using dollar (cash)? If yes, will my returns be in dollar as well or it will be converted to naira??
Hi Helen, you can invest in Eurobonds at any time. However, we only accept naira deposits at the moment. Also, your returns accrue in dollars.
So which is best to earn the second way or first?
Focusing on returns will be better
Hi, what is the minimum amount you can invest with.
Hi there. You can invest the naira equivalent of $100
Hi Ope, does that mean I’d need two accnts to operate the fund, I.e a naira account to put in the naira funds which is d only 1 u currently accept, then a domicilary account where my returns would accrue in?
I want to invest in your Eurobond.
I have re-installed your new app an still can get the eurobond plan?
How much is the minimum equivalent dollar for a start?
Can i get an overview of all the benefits and rules of this plan?
***and still can’t get the eurobond plan?
Do you allow people from south Africa
Hello, my question is if I invest in the dollar mutual fund how do I get the returns?
Will it be in naira or in dollars and will I have to open another account for the returns to go into
Can’t you go down to 50USD
Hello Nsikak, currently the minimum is $100 but we we are looking at a possible review in the future.
The new minimum is $10
Hello will I have to re-open another account before investing in dollar?
luckysolomon444@gmail.com
I have invested in dollars mutual fund… It means I Will get my return in one year
Hi Jonathan,
How is the return/interest on your investment from November 27,2020 so far??
No you don’t have to, just click on invest in mutual funds, you will see the options there. You can navigate and alot with your account.
If I invest in the euro bond, it is expected that my return accrues in dollar, right? And how do I withdraw the dollar? Do I need to convert it to naira, if yes, how can I convert my dollar to naira on the app. Lastly, how long do I need to leave my investment on cowrywise? Or can I withdraw anytime?
Am interested. Let’s say I put in a $1,000. What the ROI…within 1 year.
Your interest is 6.6% then calculate it for one year, I think so
Hello,
As a Nigerian, can I save my money in dollars even though I don’t want to invest in a dollar mutual fund?
Pretty soon, yes!
If l invest in naira am l going to get it back in dollar
You’d be getting it at the prevalent naira exchange value of the dollar.
Am going to save in naira am going to get it back in dollar
You’d be getting it at the prevalent naira exchange value of the dollar.
Hello ope pls how much is $10 in naira
How long does the investment last.i.e when can I get my returns
I will give BIG CONGRATULATIONS to the entire Management of COWRYWISE for this wonderful opportunity to be a good investor with simple and sound education on various investment opportunities an investment can be done with little and grow within a short period period of time
God bless
Thank you so much ?
Now if I put 100$ in one year what is my return
If my return will be in the current dollar rate at the time, when i am investing and when am getting my returns, what exchange rate do u use? Black market rates or the bank rates – please verify in each case. Thanks.
Hello please if you can create the one we can start with the minimum $1 we’ll be happy ??
I just started investing in eurobond funds on cowrywise. So far so good, it has been a good platform to invest money and earn back. Kudos to the team behind this platform