By Milcah Tanimu
Nigerian investors are increasingly investing in Mutual Funds. Assets surged 80.3% to N3.75 trillion as of December 13, 2024, up from N2.08 trillion in 2023, according to the Securities and Exchange Commission (SEC).
Fixed Income Funds recorded the largest growth with N1.693 trillion, making up 45.13% of the total NAV. Money Market Funds followed with N1.617 trillion, accounting for 43.1%. Bond/Fixed Income Funds had N199.22 billion, or 5.31% of the total.
Money Market Funds posted the highest yield at 21.32%. Bond/Fixed Income Funds had a yield of 11.5%, while Fixed Income Funds yielded 8.17%.
Analysts say this growth shows a shift in strategy. Investors are seeking stability amid inflation and exchange rate issues. They prefer high-yield, low-risk investments, such as Money Market and Fixed Income Funds.
Tajudeen Olayinka, an investment analyst, noted that this trend reflects a strategy for stability and better returns. Money Market Funds, which invest in short-term debt like treasury bills, are a safer option for capital preservation and managing short-term cash needs.
