Category : Investing , Updates

Your 2019 Round-up On Mutual Funds In Nigeria

Your 2019 Round-up On Mutual Funds In Nigeria

Mutual Funds in Nigeria on Cowrywise

On the 21st of May, 2019, we became the first retailer of top mutual funds in Nigeria. Till date, we are still the only platform that makes it possible for Nigerians to invest in mutual funds for as low as ₦100. If you’ll love to learn about the basics of mutual funds, you can check here and here.

Currently, we retail 13 mutual funds with a combined value of ₦23.1billion ($63 million) from high-flying fund managers in Nigeria. Amongst these funds, we have a dollar fund which allows you to start investing with as low as $100. Did you know that the average entry deposit for such, before Cowrywise, was $1,000? Yes, we keep things simple and accessible.

Also, we have money market funds, equity funds, halal funds, and bond funds. Everyone is welcome to invest with Cowrywise - regardless of your faith or income level. Now that you see how we have worked some magic for you, let’s show you how these funds performed in 2019.

Performance Reports of Mutual Funds on Cowrywise

Bond Funds Report 
Money Market Funds Report 
Balanced Funds Report 
Equity Funds Report
Dollar Funds Report

Bond Funds

best bond mutual funds in nigeria in 2019

NIDF, which stands for Nigerian International Debt Fund, was the best performing naira bond fund. This fund, which is managed by Afrinvest Limited, performed excellently in 2019 - it earned 19.86%.
In the same vein, the Bond Fund managed by United Capital (a sister company of United Bank for Africa) did not disappoint. The fund earned 14.49% for investors in 2019. Bond funds, which help you access government and corporate bonds, did some good numbers last year.

Money Market Funds

best-money-market-mutual-funds-nigeria-2019

With returns of 11.28%, the Meristem Money Market Fund was the best-performing money market fund on Cowrywise in 2019. The two other money market funds - Afrinvest Plutus Fund and United Capital Money Market Fund - earned 8.10% and 8.11% respectively.

Did you know that all money market funds invest in low-risk financial instruments? That way, your capital is kept safe at all times. Also, they serve as good options for building emergency funds as they can be accessed anytime. Do they still attract returns? Yes.

Build an emergency fund today

Balanced Funds

best-balanced-mutual-funds-nigeria-2019

This type of funds blends instruments with various risk levels (treasury bills, bonds, equities etc.). For example, a fund can invest in treasury bills (low-risk), bonds (medium risk), and equities (high-risk).

Despite the slow performance of equities (shares/stocks) in Nigeria, last year, the fund managers ensured that investors earned positive returns. It is key to note that the best strategy is to play the long-term.

Currently, we retail three balanced funds:

  1. United Capital Balanced Fund (3.77% in 2019)
  2. Lotus Halal Investment Fund (6.13% in 2019)
  3. United Capital Wealth for Women Fund (7.78% in 2019)

Equity Funds

best-equity-mutual-funds-nigeria-2019

Before we go on, here is something you should know about equity funds; they are high-risk investments. Money put into such funds are invested in shares/stocks of companies in Nigeria. Hence, they can lose and gain money. 2019 was a slow year for equities (shares/stocks) in Nigeria.

Though there were losses, we observed something beautiful as the year rounded up - these funds started to gain and cut down on losses. Here’s an interesting fact; some of these funds earned up 40% in 2016. How did they perform in 2019? Check this:

  1. Afrinvest Equity Funds (-5.04%)
  2. United Capital Equity Funds (-1.59%)
  3. Meristem Equity Funds (-8.26%)

We have a simple tip for investing in equity funds, automate your investments for the long term. That way, you can cancel out losses. Read more on why this strategy works here. 

Dollar Funds

best-dollar-mutual-funds-nigeria-2019

In 2019, we had just one dollar fund - a Eurobond fund by United Capital. The fund makes it possible for you to access foreign investments. That way, you can protect your investments from instability, and also benefit from exchange rate gains.

The best part, you can invest with naira. We’ll handle the exchange on your behalf. As a dollar fund, its returns are not as high as naira funds because the dollar is a strong and stable currency. Even at that, amongst its pairs, the returns are amazing! It returned 8.01% in 2019.

Try out dollar investments today

Start Investing Today

Did you miss out on mutual funds in 2019? You can start investing here today. We promise that it is simpler than you expect.

17 Comments

  • Avatar

    Solomon Josiah Reply

    11:32 pm . January 10, 2020

    Good and accurate update 👌 keep the good work.

  • Avatar

    Iheboro Kelechi Reply

    5:57 pm . January 11, 2020

    Keep it up cowry wise..I have already invested for the new year..Wonderful platform 👍👍👍

  • Avatar

    Obinna Reply

    9:53 am . February 4, 2020

    I need to know..
    why do I need to invest in mutual funds where I still face the risk loosing money while I could just leave my funds in my savings where I earn up to 11.5% interest..
    ..

    • Ope

      Ope Reply

      8:43 am . February 6, 2020

      The choice is yours at the end of the day. What mutual funds offer is diversification.

  • Avatar

    Zeek! Reply

    10:45 am . February 4, 2020

    👍🏾👍🏾

  • Avatar

    Meme Reply

    11:33 am . February 4, 2020

    You earn 11.5% interest in your savings?

  • Avatar

    Rihannah Reply

    6:50 pm . February 4, 2020

    Which funds are currently on, minimum investment, for how long and what is the ROI?

    • Ope

      Ope Reply

      8:42 am . February 6, 2020

      All funds are currently on. You can start with any comfortable amount, and also check out the ROI within the app.

  • Avatar

    Orokoya God’s power Reply

    10:46 pm . February 4, 2020

    Pls Ope, I need more financial education on aforementioned topic both on the benefits and risk. Keep the good work

    • Ope

      Ope Reply

      8:39 am . February 6, 2020

      Hi there, have you checked out my other articles?

  • Avatar

    John Paul nwabuisiaku Reply

    8:34 am . February 5, 2020

    Thanks so much ope for the information… God bless you

    • Ope

      Ope Reply

      8:39 am . February 6, 2020

      Thank you

  • Avatar

    Adejumo Matthew Reply

    1:00 pm . February 5, 2020

    Good one, I can now invest at ease.
    Thanks Ope.

    • Ope

      Ope Reply

      8:39 am . February 6, 2020

      Beautiful!

  • Avatar

    Damilola Aderemi Reply

    2:04 pm . February 5, 2020

    Gudday Ope .As a beginner on which of your savings platform can i start with and would the ROI be monthly or for how long i keep operating the deal?

    • Ope

      Ope Reply

      8:38 am . February 6, 2020

      Hello Dami, you can start with the money market funds on the platform or our regular savings. All rates are annual, but you can monitor them daily.

  • Avatar

    Ogechi Deborah Reply

    10:32 pm . February 11, 2020

    Thanks ope

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