List Of Best Performing Mutual Funds To Invest In Nigeria (2019)

best mutual funds in nigeria

Mutual funds are pretty sophisticated investment products and for a first-time investor, becoming anxious is very common. However, you can easily start your investment journey by having a basic understanding of what mutual funds are, how mutual funds work and which mutual fund is best to invest in.

One of the main advantages of Mutual Funds is they give small investors access to professionally managed, diversified portfolios of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the gain or loss of the fund.

What are mutual funds?

Mutual Funds are professionally managed investment schemes. They represent a pool of funds that are professionally managed by expert Mutual Fund managers. The fund managers keep a record of the performance and growth of these funds and make required alterations so that the funds perform well and the investors receive the best possible returns.

Mutual Funds are controlled by an Asset Management Company (AMC) that collects funds from a group of investors and invest these funds in bonds, stocks, and securities. When you purchase units of a Mutual Fund, these units denote the holdings of your share in a certain fund scheme.


Also Read: How To Invest In The Nigerian Stock Exchange.

Best Mutual Funds in Nigeria in 2019.

Before you choose a mutual fund to invest in, it is important to spend a little time learning about the major mutual funds available in the market and how those funds have performed over time.

1. Stanbic IBTC Nigerian Equity Fund

The Stanbic IBTC Nigerian Equity Fund (“SINEF”) is the largest open-ended equity bias mutual fund in Nigeria with a net asset value in excess of several billions of Naira under management. The fund invests a minimum of 60% of its assets in equities of blue-chip companies listed on The Nigerian Stock Exchange (NSE) while retaining a maximum of 40% of its total assets in Fixed Income Securities (i.e. money market securities and bonds).

The fund was launched on 28 February 1997 at a par value of N1,000.00 per unit. The primary objective of the Fund is to achieve long-term capital appreciation of its assets by investing in a carefully selected portfolio of high-quality equity securities quoted on the Nigerian Stock Exchange and in other securities approved by the Securities & Exchange Commission.

2. FBN Money Market Fund

As an open-ended mutual fund, the FBN Money Market Fund invests in a broadly diversified portfolio of short-term, high-quality money market securities such as Treasury Bills, Commercial Papers, Bankers Acceptances and Certificate of Deposits issued by rated banks in Nigeria.

If you are regular saver with short to medium-term financial goals and would like to maximize your income, the FBN Money Market Fund is an ideal choice. Some of the benefits of this fund include a high level of security, low risk, competitive returns and you can start with as little as N5,000.

Also Read: How To Invest In Treasury Bills In Nigeria.

3. Zenith Equity Funds

The Zenith Equity Fund is an open-ended unit trust scheme that invests predominantly in equities in Nigeria as well as in investment grade fixed- income securities.

The Fund, Zenith Equity Fund, is designed for investors seeking to optimize their returns at minimal risk. It provides a relatively cheap opportunity for investors to build wealth at a considerably lower risk than direct stock investments and higher potential returns than fixed income instruments.

4. United Capital Balanced Fund

United Capital Balanced Fund is an open-ended mutual fund that offers investors the benefit of a diversified portfolio of securities that cuts across the different asset classes It invests in equities and fixed income instruments. It invests in equities and fixed income instruments.

United Capital also have other mutual funds investment products which comprise of United Capital Bond Fund, United Capital Equity Fund, and United Capital Money Market Fund. With as little as N10,000 you can invest in this fund.

5. ARM Aggressive Growth Fund

Meet long-term objectives such as education funding, property acquisition and the likes with the high capital growth obtainable in the Aggressive Growth Fund. You can start investing in this fund with as little as N50,000.

This Aggressive Growth Fund is suitable for Investors who want high capital growth over the long term to meet objectives such as education funding, property acquisition or leaving a legacy for loved ones. ARM also has other mutual funds products such as ARM Discovery Fund, ARM Ethical Fund, and ARM Market Fund.

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