WHAT YOU NEED TO KNOW ABOUT MUTUAL FUNDS - Ronald Kenneth

Eendragt Maakt Magt, that was what the first mutual fund, established in 1774, was called. This name, a Dutch one, translates to “Unity Creates Strength”, and it emphasizes the unique ability of mutual funds to aid the everyday person with accessing premium investment options.

 However, in Nigeria and most part of Africa, we have not been able to harness this strength due to the lack of inclusivity of mutual funds.

The impact of this exclusivity is in two folds:
•Less than 400,000 Nigerians have investments in mutual funds
•The entire mutual fund industry is worth just N750Billion ($2Billion).

HOW DO MUTUAL FUNDS WORK?

Ordinarily, picking assets to invest in is an extreme sport. More often than not, you’ll get your two hands, not just your fingers, burnt. Combining this with the fact that they are not cheap, one can understand why many people stay away from investing in the stock market despite its high-earning potential.

Saving the day, mutual funds make it possible for people with little or no understanding of investment, to pool together their funds for investment in professionally selected assets at a very minimal cost. That way, you get to kill three birds, yes three, with one stone — the complex selection process of assets, high purchase prices, and neck-breaking management fees.

Cowrywise have partnered top investment houses like Meristem and Afrinvest to help Nigerians have access to multiple mutual funds all in one app. The mutual funds invest in companies like Dangote Cement, GTBank, Nestle, Total Nigeria and high quality fixed income securities. Interestingly, anyone will be able to access these funds transparently with as low as NGN100.

CLICK HERE TO CREATE AN ACCOUNT WITH COWRYWISE

After creating an account, go to Google playstore or Apple App store and download the Cowrywise App for seamless savings and investments in Mutual funds.

#RonaldWrites

PS

Another way to buy or invest in mutual funds would be through any commercial bank of your choice.


Source: Cowrywise