Am a beginner in Investment and i want to start by investing in equity fund through investment app ,that is why am asking that is it compulsory to have CSCS and CHN account before investing?
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Am a beginner in Investment and i want to start by investing in equity fund through investment app ,that is why am asking that is it compulsory to have CSCS and CHN account before investing?
Emeka, my brother! I see say you wan begin your investment journey. That one dey good wella! Before I go answer your question, make we first yarn small. You see, investing na like planting maize for farm. If you plant maize, you go wait for some time before you fit chop the harvest. E no dey happenRead more
Emeka, my brother! I see say you wan begin your investment journey. That one dey good wella! Before I go answer your question, make we first yarn small. You see, investing na like planting maize for farm. If you plant maize, you go wait for some time before you fit chop the harvest. E no dey happen overnight. So, when you dey invest, make you get that patience like farmer wey dey wait for rainy season.
Now, onto your question about investing for equity fund through app. E good say you dey reason that path. But to answer your question, e no compulsory to get CSCS and CHN account before you fit invest for equity fund through app. The matter be say CSCS and CHN account fit dey required if you wan buy individual stocks directly. But if you dey use app wey offer mutual funds or exchange-traded funds (ETFs), you fit invest without CSCS and CHN account. The app fit arrange everything for you, so you fit start your journey without stress.
Make you remember say, before you start to invest, try learn small. Make you know wetin you dey invest into and how e dey work. E good make sense to understand why you dey put your money for inside where e dey grow.
If you get more questions or you need clarification, feel free to ask. The important thing be say, make sure say you dey learn as you dey invest. Ona adiok!
See lessNo, it is not compulsory to manually possess or open a Central Securities Clearing System (CSCS) account or a Clearing House Number (CHN) yourself before investing in an Equity Mutual Fund. Here is why: 1. Direct Shares vs. Equity Mutual Funds • Direct Stock Trading: If you were buying individual shRead more
No, it is not compulsory to manually possess or open a Central Securities Clearing System (CSCS) account or a Clearing House Number (CHN) yourself before investing in an Equity Mutual Fund.
Here is why:
1. Direct Shares vs. Equity Mutual Funds
• Direct Stock Trading: If you were buying individual shares directly on the Nigerian Exchange (NGX) via a stockbroking firm, a CSCS account and CHN would be strictly mandatory to store your electronic shares.
• Equity Mutual Funds: An Equity Fund pools money from thousands of investors. A SEC-licensed Fund Manager manages the pool and buys the individual stocks on behalf of the fund. The fund’s assets are held safely by an independent Custodian bank. You are only buying units of the fund, not individual shares directly.
2. What Happens When You Use an App?
Depending on the investment app you choose (such as Cowrywise, PiggyVest Investify, Stanbic IBTC Mutual Funds, or Coronation Wealth), the process handles CSCS/CHN requirements seamlessly:
i. For Mutual Fund Units Only: You do not need a CSCS number at all. The app only requires standard Know Your Customer (KYC) compliance—your BVN/NIN, valid ID, and bank details.
ii. If the App Integrates Direct Stock Trading Alongside Funds: Apps like Trove, Bamboo, or Chaka automatically generate a CSCS account and CHN for you in the background during your account setup if you ever decide to buy direct Nigerian stocks.
What You Actually Need as a Beginner
See lessTo start investing in an equity fund through an investment app in Nigeria, you only need:
• Bank Verification Number (BVN) / NIN (for identity verification).
• Government-Issued ID (Driver’s License, International Passport, Voter’s Card, or NIN Slip).
• Bank Account Details (must match the name on your BVN for seamless withdrawals).
• Proof of Address (Utility bill or bank statement showing your residential address, required by some apps).