You’re asking the right question—because what you’re seeing can easily be misunderstood.
Let’s clear it properly.
🔍 First: That “34% → 41%” is NOT a fixed interest rate
On platforms like Cowrywise, an equity fund does NOT have a fixed interest rate like a bank or money market fund.
👉 What you’re seeing is:
Estimated annual yield (based on recent performance)
So it can:
Go up (like 34% → 41%)
Go down (even to negative)
⚙️ Why did your yield increase?
There are 2 possible reasons, but one is more important:
✅ 1. Market performance (MAIN reason)
The fund manager invests in stocks.
If:
The stock prices go up
Or dividends are strong
👉 The fund’s performance increases → yield estimate rises
⚠️ 2. Adding more money (NOT the real cause)
Adding more capital:
Does NOT increase the percentage yield
It only increases:
Your total returns (₦)
Not the rate (%)
👉 So be clear:
Your extra money did NOT cause 41%
The market performance did
🧠 How equity funds actually work (simple)
An equity fund:
Pools money from many investors
Fund manager buys stocks like:
Banks
FMCGs
Telecom companies
If those stocks:
Rise in price → your investment grows
Fall → your investment drops
📊 Important reality beginners miss
That 41% is not guaranteed
Next month it can become:
25%
10%
Even -5% (loss)
👉 Equity funds are volatile
⚠️ Very important warning
Don’t make this mistake:
“It increased, so let me keep adding aggressively”
That is how beginners get caught when the market drops.
✅ So what should YOU do now?
Option 1: Continue adding (but wisely)
✔ Good if:
You are investing long-term (3–5 years+)
You understand risk
👉 Use small, consistent additions (not emotional deposits)
Option 2: Balance your investment (BEST for beginners)
Don’t put everything in equity.
Instead:
60–70% → Money Market Fund (safe)
30–40% → Equity Fund (growth)
👉 This protects you when market drops
🎯 Practical strategy for you
Since you already started:
Keep your equity fund ✅
But don’t rely on it alone
Add:
A money market fund (for stability)
Then continue equity gradually
🧠 Final clarity (very important)
Yield increase = market performance
Not because you added money
Equity fund = no fixed return
Good for long-term wealth, not short-term profit