Investing in Dollars may seem technical and confusing. Not much information is available about foreign currency investments and most foreign currency investments like Eurobonds and euro bond notes have high entry points.
Like any other mutual fund, the goal of the Cordros Dollar Fund makes investment easy, affordable and convenient. As a first-time investor, we are here to guide you on how you can invest in Dollars.
Here’s what this article is about:
· The benefits of investing in a dollar fund
· How the Dollar Fund works.
· How to invest in the Cordros Dollar Fund
Without further ado, let’s dive in!
Why you should Invest in a Dollar Fund.
Apart from the regular return on investment (R.O.I), there is more to investing in the dollar fund. The following are the benefits you enjoy when you invest in the Cordros dollar fund:
You diversify from Local Currency to Foreign Currency:
Investing in a dollar fund like the Cordros dollar fund allows you to diversify your portfolio from the local naira investments to foreign currency investment. By doing this, you are also hedging your investments against market and currency risk such as inflation and devaluation.
You Earn Competitive Returns
With a Dollar Fund you stand a better chance of earning more with your US dollars compared to the rates you would receive in your average domiciliary account. A dollar fund will optimize your R.O.I.
You Settle your Dollar Obligations
A lot of us have responsibilities that require dollar payments. It could be school fees of a child abroad, healthcare or the need to fund trips abroad. Whatever it may be, having a dollar fund investment allows you do fund those dollar obligations.
How the Dollar Fund works.
The Cordros Dollar Fund is a Mutual Fund that allows you to invest in dollar-denominated securities such as sovereign Eurobonds, corporate Eurobonds, etc. — which conveniently allow you to invest and earn returns in US dollars.
Just like you invest in a money market fund, rather than leaving your money idle in a savings account, investing in a dollar fund provides higher returns than what is obtainable in your average domiciliary account.
With the Cordros Dollar Fund, you invest in US dollars and earn in US dollars. The dollar fund being an open-ended fund, there are no closing dates and you can invest for as long as you like.
The fund provides a twin benefit of earning through capital appreciation- the continuous increase in your principal investment- and annual dividend payment. To start investing in the fund, you would need to subscribe to a minimum of 5 units.
Investing in a Dollar Fund.
Before investing in any instrument, you should understand how it works and the key requirements. Here’s a guide to investing in the Cordros Dollar Fund:
You would need a Domiciliary Account:
A domiciliary account also called ‘Dom’ account is an account that allows you to send and receive money in foreign currency (US dollars, Euros, Pounds sterling) from another country.
Have you ever wondered how people in the abroad can send foreign currency to people in Nigeria? There you have it. A domiciliary account can be used to carry out foreign transactions. All payments to your dollar fund account should come directly from your domiciliary account in US dollars. You invest US dollars to earn US dollars, remember?
Submit the Application Form.
Once you have funded your domiciliary account with dollars, you then need to fill the required information on the fund’s application form. You should submit the form alongside the required KYC documents to the fund manager. (Cordros Asset Management Limited).
Funding your Account.
After the application form has been submitted, your dollar fund account will be activated. Your online access to the Cordros Portfoliolive will be sent to you. To fund your investment account, you need to make a cash transfer (no cash deposits allowed) from your domiciliary account to your Dollar Fund account. Once this has been completed, you would have successfully subscribed to the Cordros Dollar Fund.
To diversify your portfolio and broaden your investment horizon, call 07002673767 or email email@example.com to begin.