Top Mutual Funds In Nigeria

It is one thing to want to invest in mutual funds and it is another to invest in good ones. This article highlights some of the best in Nigeria in no particular order

*It is one thing to want to invest in mutual funds and it is another to invest in good ones. This article highlights some of the best in Nigeria in no particular order.*

It is one thing to pull funds together with your friends to buy a better house than you would ordinarily been able to afford on your own, and it is another to get one of the best houses in the market.

In our previous article, we had highlighted some of the advantages you stand to gain from investing via mutual funds. However, all of these benefits including having a diversified portfolio or being able to invest in vehicles you would not have been able to afford, would come to naught when you are signed up under the wrong mutual fund company.

In no particular order, here is a list of some of the best mutual funds in Nigeria based on their performance over the past few years:

Stanbic IBTC Aggressive Fund

Stanbic IBTC Aggressive Fund is known for offering competitive returns, its diversification spread, aggressive allocation, liquidity provision, and for keeping a steady threshold of low to medium volatility.

The fund is a member of the Stanbic IBTC Umbrella funds which also includes the Stanbic IBTC Absolute and Stanbic IBTC Conservative funds. They reveal that they typically invest a minimum of 60% of its assets in the equity market and the other 40% in fixed income securities.

Stanbic IBTC Aggressive Fund is great however, it is best suited for investors with high risk appetite. If you have a low risk appetite, it is safer to join their Conservative Portfolio and if you are completely risk averse, their Absolute Return Portfolio is your best bet as they invest 100% in fixed income securities and would not lose a dime of your money.

The funds are managed by Stanbic IBTC Asset Management and with just ₦5,000, you can start your investment journey.

FBN Nigeria Smart Beta Equity Fund

The FBN Nigeria Smart Beta Equity Fund is best suited for investors who are seeking to build wealth for the long run. Their focus is on the high-risk investor with long-term goals and with a minimum starting investment of ₦50,000.

It is an equity-based fund and it is called that because it generally invests in stocks across all sectors that are listed on the Nigerian Stock Exchange. The fund offers competitive returns as well, by adopting highly research-based and time-tested evaluation systems.

Regarding their spread, they provide long-term capital preservation by investing at least 75% of the in a diversified portfolio and for liquidity sakes, 25% in short-term money market instruments.

Meristem Equity Market Fund

The Meristem Equity Market Fund is under the Meristem Wealth Management Limited (MWML) and its focus is also on investment in equity securities in the NSE. It is an an open-ended mutual fund that requires a minimum initial investment amount of just ₦10,000.

Beyond the high yields that the fund provides and its high net asset value, customers have praised them for their exceptional customer service and relationship management. They also offer you the opportunity to apply as a corporate body/entity or make a joint application depending on the nature of the group.

EDC Fixed Income Fund

EDC Fixed Income Fund invests in fixed income instruments and is ranked across various platforms as one of the top 3 mutual funds in Nigeria. It invests in a range of debt securities, bank placements, bonds, commercial papers, and other fixed income investment vehicles.

As you would already tell, the fund caters to those who are risk averse or those willing to take minimal risk. Its objective is to offer investors accessible liquidity and liability management while carefully avoiding all the risks that could potentially arise from equity investments.

EDC Fund Management is the Asset Management arm of Ecobank, and it has two mutual funds namely the EDC Nigeria Money Market Fund, and the EDC Nigeria Fixed Income Fund. Minimum capital requirement for the Money Market Fund is ₦5,000 while you need a minimum of ₦50,000 for the Fixed Income Fund.

Of course, if you would prefer to invest and monitor your portfolio yourself, the Yochaa App is your trusted eyes and ears into stock market.

Written by Lawretta Egba