Skip to main content

Monthly Payout or Compounding

Your portfolio handles each month's return in one of two ways. You choose at onboarding.

In the app the choice is presented as two contribution styles: one where your contribution is matched to a specific rent need and you take a monthly return, and one where you add to the housing pool and let your returns build on themselves.

Monthly payout​

Each month's return becomes available to you rather than being added to your contribution.

  • Your contributed amount stays the same throughout the term.
  • Each month's return is worked out on that same amount.
  • The return becomes available according to your portfolio's payout day.

Example. You contribute an amount and your portfolio uses monthly payout. Each month the return shown on your portfolio becomes available to you, and your contributed amount is unchanged. Over the term you take the returns as they come.

Suits you if you want regular income from the contribution.

Compounding​

Each month's return is added to your balance, so the next month is worked out on the larger figure.

  • Your balance grows each month.
  • Nothing is paid out to you along the way.
  • The growth accelerates gently, because each month starts from a bigger base.

Example. You contribute an amount and your portfolio compounds. In the first month the return is worked out on what you contributed. In the second it is worked out on your contribution plus the first month's return, so it is slightly larger — and so on for the rest of the term.

Suits you if you do not need the money during the term and want the balance to build.

Which is better?​

Neither. They answer different questions.

Take monthly payout if you want the money as it is earned. Choose compounding if you are leaving it alone and want the balance to grow.

Compounding gives a larger figure at the end of the term precisely because you took nothing out along the way.

Can you change method later?​

The onboarding page says you can adjust your contribution style later. Ask support to confirm what is possible on an active portfolio before you rely on it — do not assume a running portfolio can be switched.

Still need help?​

Contact Welile Support on WhatsApp, call +256 748 747134, or email info@welile.com.

Was this article helpful?