Nigerian investors’ desire for mutual funds has grown, with total assets under administration increasing by 80.8% Year on Year (YoY) to N4.1 trillion on January 24, 2025, up from N2.3 trillion in the same period in 2024.
According to data supplied by the Securities and Exchange Commission (SEC), Money Market Funds were the most popular, with the largest asset value of N1.887 trillion and accounting for 45.81% of the total Net Asset Value, or NAV, of mutual funds.
Stanbic IBTC Asset Management’s Money Market Fund was the most active, accounting for 45.83% of its NAV. FBNQuest came in second with 20.43% of the NAV, followed by Cardinalstone Money Market Fund with 7.5%.
The Fixed Income Funds trailed the Money Market Funds by N1.788 trillion, accounting for 43.41% of the total NAV of the Mutual Funds, while Bond /Fixed Income Funds ranked third on the chart, accounting for N193.295 billion, or 4.69% of the total NAV. Analysts remarked that the increase trend reflects a purposeful shift by Nigerian investors aiming to mitigate rising prices and exchange rate instability.
Tajudeen Olayinka, Investment Banker /Chartered Stockbroker, said on the Mutual Funds investment: “The inflow into mutual funds is particularly noteworthy as investors look for high-yielding low-risk opportunities, gravitating towards Money Market Funds, Fixed-income Funds, and Bond Funds”.
In his own views, Michael Oyebola, Managing Director/CEO, Money Counsellors, said: “It is extraordinary feat for the Nigerian financial system, the country’s Mutual Funds business has attained a significant milestone in the time under review, achieving more than N4.0 trillion. This outstanding performance illustrates investors’ rising confidence in Mutual Funds to invest and grow their assets.
“Also, the significant rise in the Mutual Funds business can be linked to a number of factors, including increasing financial awareness in the general population and the prolonged bull stock market. The government’s high interest rate system drives the Money Market Funds.
