Cowrywise, one of the best money savings apps in Africa help you put your money to work, manage your finances, and diversify your portfolio in just one dashboard. However, many people are still complicated about using it, some even doubt its credibility.
As an investor, if something is worth giving a try, I say it with my full chest without complications. Now, you must have come across Cowrywise, but are unsure of how it works or if it can help you build wealth and manage money while you focus on other aspects.
Never worry again because this article has got you covered. In today’s post, I will explain how to start investing with Cowrywise. If you have never invested before, this is the shortest way to start.
Cowrywise and Piggyvest are two apps that I mostly recommend for people that want to start investing and managing their finances. But, don’t get confused about the two as they serve different purposes. For instance, Cowrywise is for investment while Piggyvest is mostly for saving money.
What is Cowrywise?
Cowrywise is a professional fund manager that is duly licensed by the Securities and Exchange Commission of Nigeria since June 2021. That was the year they were allowed to legally operate in Nigeria by providing mutual funds from different professional fund managers across the country.
Their mutual funds are mostly managed by partners and made available to people through mobile applications. You can just download the app from the app store and start investing. It also provides savings plans for people who want to take control of their wealth.
How does Cowrywise Investment work?
When you create an account, you can fund it with any available payment options and look for the best mutual funds to invest in. You can view the list of mutual funds, their performance index, historical data, interest rates, funds size, and their YTD returns.
YTD return means the amount of money made by an investment since the first day of the current year so you can make informed decisions before putting your hard-earned money.
Cowrywise also allows you to save money and earn competitive returns without penalties or maintenance fees. Even better than putting money in a regular bank account that sometimes doesn’t yield returns.
Requirement for Investing with Cowrywise
There are no special requirements before you can start investing with Cowrywise, just some basic information and data about you is enough.
Here are some:
- A working bank account: This is the account that will link to Cowrywise to facilitate transactions. For example, transfers, withdrawals, and to fund your investments and the saving plans you choose.
- Valid BVN: A BVN is required to authenticate your account and to prevent unauthorized access from hackers. The BVN is also used to provide you with a virtual account specially designed for many purposes through Stash.
- Investment account: This is where you can invest in mutual funds and monitor your investments as they grow. You can invest in many mutual funds at once.
- Funds: You will need money to invest as this is the main factor that will let you experience the true beauty of the app. It is also a wise choice to register now and then fund your account later.
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Why should I Invest with Cowrywise?
To me, it is the best way for beginners to start and grow their wealth before exploring other professional tools. The app makes it easy for you to choose mutual funds, and invest with a single click of a button.
Still, having doubts?
Here are some reasons to lift your spirit:
- Advanced Security: Cowrywise uses advanced and industry-leading technology to protect users’ data. They also use two-factor authentication to verify all customers’ accounts and to prevent it from authorized users. It can be frustrating to see users complaining about their funds missing, as this alone can destroy the platform’s reputation, so they ensure that you get maximum security when you sign up.
- Assets Custody: Your files, data, and assets are stored with a licensed and leading custodian, Zenith Nominees Limited for safekeeping to prevent hackers and any potential loss. Your security and assets safety is the almost priority and that’s how they make money for you and themselves. So, why should they jeopardize it? Your assets are protected and well-managed.
- Regulated: Cowrywise was regulated in June 2021 to operate by the Securities and Exchange Commission (SEC) of Nigeria. That alone should give you the right signal to invest your money.
- Professionally Managed Funds: All assets class are professionally selected and managed by top fund managers in the country. Some of the mutual funds and their partners are duly compliant with the Securities and Exchange Commission (SEC).
Here’s the tip:
- Before investing in mutual funds after creating an account, pick any mutual fund you like and go to the website of SEC at SEC.gov.ng.
- Once you’re on the SEC website, type the mutual fund name in the search box and hit the search button.
- If you see the name on the list of funds displayed then it is licensed.
- Go back to Cowrywise and invest. It is another safer way to ensure that your money is going in the right direction.
That’s what I do before investing in mutual funds. Not only Cowrywise, before investing in any platform, make sure you do thorough research before putting your money.
How to Start Investing with Cowrywise
Now that you know what to do, what Cowrywise investment is all about, their basic requirements, and you think it’s time to start exploring, then follow these steps.
- Steps 1: Create an account: You’ll need an account to start investing and exploring the benefits of Cowrywise. Make sure you create the account using this link at Cowrywise.com
- Step 2: Log in to your account: After logging in, your dashboard or homepage will look something like the image below.
- Step 3: Click on Invest to visit the investment page and view all the mutual funds.
- Step 4: Choose an investment plan: Here, you can select either the Naira Mutual Funds or Dollar Mutual Funds. See the image below so you don’t make a mistake.
- Step 5: If you choose the Naira Mutual Funds which I will advise you to do, it will bring you to another page that says Invest In Naira Mutual Funds.
- Step 6: After clicking on it, you will land on the mutual funds page where all the funds are listed. You can filter and choose between Moderate, Conservative, or Aggressive mutual funds.
I will suggest you pick Conservative mutual funds as you can earn annual fixed returns on your investment.
Note: Mutual funds are the main investment opportunities in the app. Learn more about it before putting your hard earned money.
- Step 7: Pick the choice of mutual funds you want to invest in. For instance, if you choose the United Capital Money Market Fund, it will bring you to another page like the image below.
- Step 8: Click the price you would like to pay in the default list or click Different Amount to add a custom price.
Once you’ve set a custom amount, click the Invest button and you are done. Note, make sure you’ve added funds to your account for seamless transactions.
That’s how to invest in mutual funds on Cowrywise. The process is simple as ABC.
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Cowrywise Interest Rates and Investment Plans Review
As the platform only offers mutual funds on investment, interest rates are based on annual fixed returns and capital gains. For example, if you buy at N100 but sell at N120, you’ve earned an additional N20 as capital gains.
Conservative mutual funds allow you to earn fixed annual returns. Remember, the more you invest the more your interest doubles. And don’t withdraw your funds because you’re not seeing significant gains. Investing is for the long term and not the short term.
Cowrywise mutual funds or money market funds are categorized into three parts:
- Conservative
- Moderate
- Aggressive
They summarized the level of risk an investor is willing to take before investing in those funds.
Frequently Asked Questions (FAQs)
Can I withdraw all my money from Cowrywise?
You can only withdraw when you reach the set maturity date. So, yes you can choose to withdraw all the money including the interest, or reinvest them.
What is the minimum amount to invest in Cowrywise?
You can start investing with as low as N1000 naira mutual funds and $10 for dollar mutual funds.
That’s A Wrap!
As you begin investing, understand that it will take a long time to witness a significant amount on your investments. To be more successful, don’t withdraw your funds and interest too early.
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Continue adding more funds to your investment to increase your returns, and be consistent in overall. Remember wealth building takes time, and you must learn to be disciplined to reach where you want to be.
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