Nigerian investors’ preference for secure, high-yielding opportunities has driven the Net Asset Value (NAV) to N3.781 trillion in early November 2024, marking an 89.5% increase from N1.995 trillion in the same period last year. This growth is attributed to the steady rise in monetary policy rates, naira devaluation, and the quest for stability amidst economic uncertainty. Fixed Income Funds led the pack, contributing 47.76% of the total NAV, followed by Money Market Funds at 40.31% and Bond Funds at 5.62%.
Analysts highlight this trend as a strategic move by investors to hedge against rising inflation and exchange rate volatility. The average year-to-date yield on Fixed Income Funds stands at 7.72%, making them attractive to those seeking low-risk returns. Dollar-denominated instruments and other secure investment vehicles are also drawing significant attention from the market.
Experts further note that the surge in Money Market Funds, which invest in short-term debt securities like treasury bills and bank placements, reflects a growing demand for stability and capital preservation. This shift underscores a broader strategy among Nigerians to navigate economic challenges while maximizing returns on investments.
