New to investing? Not sure where to start or how to spread your money across different investments?
We understand that investing can feel overwhelming, especially when you’re trying to figure out which investments are right for you. That’s where Cowrywise Managed Portfolios come in!
Managed Portfolios make it easier to diversify your investments without having to figure everything out yourself. You simply choose a portfolio based on your risk appetite, and we’ll help you spread your money across carefully selected investments.
There are three major categories to choose from:
1. Low-Risk Portfolio
If your priority is preserving your capital while earning returns, a low-risk portfolio may be a good place to start. This portfolio primarily consists of money market funds, which invest in instruments such as Treasury bills, fixed deposits and commercial papers.
Here’s what you should know:
Steady earnings: Your investment earns returns daily, based on the prevailing market rate.
Capital preservation: Money market funds generally aim to preserve your initial investment.
Variable returns: Returns are not fixed and may change depending on market conditions.
You can track how much your investment earns daily on your Cowrywise earnings page.
2. Medium-Risk Portfolio
Looking for a balance between stability and growth? A medium-risk portfolio combines different types of investments, including stocks, fixed-income instruments and cash.
Unlike low-risk portfolios, where returns are primarily earned through interest, medium-risk portfolios can generate returns through interest and capital appreciation.
What does this mean?
Diversification: Your money is spread across different investment instruments.
Growth opportunities: You can earn from both interest and increases in the value of your investments.
Some level of risk: The value of your investment may increase or decrease depending on market conditions.
3. High-Risk Portfolio
If you’re comfortable taking on more risk for potentially higher returns, a high-risk portfolio may interest you.
This portfolio has a higher allocation to equities (stocks). These are investments in shares of publicly traded companies.
Here’s what to expect:
Growth potential: You can earn returns when the value of the stocks in your portfolio increases.
Capital appreciation: Your investment grows when the market value of your holdings increases.
Higher volatility: Stock prices fluctuate, which means your investment can appreciate or depreciate.
It’s important to remember that higher potential returns also come with a higher possibility of losses.