The SFS Fixed Income Fund is probably one of the most interesting funds you’ll find on Cowrywise. It is a fixed-income fund that falls under the low-risk category. Usually, such funds fall under the medium-risk category. However, with an intelligent investment strategy, SFS has been able to make this happen.
In essence, you get to enjoy the higher returns that come with medium-risk funds without increased risk exposure. Don’t get lost. Here’s a simple breakdown:
Mutual funds are categorized according to different risk levels. These levels range from low-risk to medium risk to high-risk. The low-risk funds are more stable and usually offer lower returns compared to the others.
So, what does the SFS Fixed Income Fund invest your money in?
As the name implies, it invests majorly in fixed-income instruments like government bonds and corporate bonds. For your safety, it ensures that when investing in corporate bonds, only bonds from A-grade firms are added. For context, this is similar to a country working with only the best athletes for the Olympics.
Further, the fund also places a part of your cash in money market instruments like treasury bills. But that isn’t the best part about this fund. Over time, it has earned trust to attain the second-highest quality rating for mutual funds. It is an AA+ fund! Only one level is above that in quality ratings, so you are in good hands.
Quick facts about the SFS Fixed Income Fund
- It is a low-risk fund.
- The fund invests in a mix of bonds and the money market.
- It pays out returns quarterly to investors
Who Manages the SFS Fixed Income Fund?
The brilliant team of SFS Capital Nigeria Limited (“SFS Capital”) manages the SFS fund. As an investment firm, it is strictly regulated by the Securities and Exchange Commission (SEC). So, despite the fact that they are great at what they do, there’s an external party to keep them in line while they manage the growth of your money.
Why are we adding this fund?
In 2019, we kicked off a bold journey to introduce 500,000 first-time investors to mutual funds. So far, we have added over 20 mutual funds. However, to provide the best experience, it is important that we keep onboarding the best-in-class funds. So, this newest addition aims at expanding your choice of access to splendid investment options from the finest fund managers across Africa.
Speaking on this partnership, Yarmirama Ashama (Product Manager, Cowrywise), described it as intentional commitment to provide a richer experience for retail investors. Further, she described the addition as one to definitely provide a brilliant experience for newbie and experienced investors alike.
How does this feed the SFS Fixed Income Fund vision?
As a modern-day fund manager, the SFS team is excited about delightful investment experiences. With our platform, we ensure that this delight isn’t lost with the ease of our investment process. In describing the beauty of this partnership, Patrick Ilodianya, MD of SFS Capital, said:
“We have a commitment to wholly guide and work with investors who want free access to their investments and have a low-risk appetite. Also, we want to deepen the adoption of key financial services–like mutual funds. In line with this, we view our partnership with Cowrywise as an avenue to onboard first-time investors, and in turn, help them meet their investment goals.”
Quick facts about SFS Capital
- SFS Capital Nigeria Limited (“SFS Capital”) is an A-rated fund manager duly regulated by the Securities and Exchange Commission (“SEC”).
- It has over a decade of experience in portfolio management.
- SFS Capital won awards for best-in-class returns on investment, liquidity, and safety.
How to invest with the SFS Fixed Income Fund
- Signup here if you don’t have an account.
- Log in and tap “Invest in mutual funds”
- Select “Naira Funds”
- Search for the SFS Fixed Income Fund under the “Conservative” category
What else would you like to know about this fund? Please drop a comment and we’ll respond swiftly.