The Mutual Funds market in Nigeria has witnessed a remarkable 89.12% year-on-year growth, with the total Net Asset Value (NAV) rising from N2.023 trillion in November 2023 to N3.826 trillion in November 2024. Analysts attribute this surge to the Central Bank of Nigeria’s (CBN) monetary policy reforms, particularly increased interest rates, which have enhanced yields on money market instruments. Fixed Income Funds led the growth with N1.807 trillion, accounting for 47.21% of total NAV, followed by Money Market Funds at N1.568 trillion (40.9%) and Bond/Fixed Income Funds at N211.308 billion (5.52%).
Experts highlight that the growth reflects a shift in investor behavior, driven by heightened financial literacy, the attractiveness of foreign exchange policies, and the appeal of diversified investment options. Michael Oyebola, CEO of MoneyCounsellors, emphasized that the Mutual Funds landscape has become more vibrant, benefiting from increased awareness among retail and institutional investors. The ongoing bull market and rising interest rates have encouraged investors to seek higher returns through Mutual Funds.
David Adonri, Vice Executive Chairman of HighCap Securities Limited, noted that Mutual Funds serve as reliable tools for portfolio diversification and risk management. With their structured approach to cater to varying risk tolerances, these funds have become a favored choice for passive and foreign investors alike. Adonri expressed optimism about the future of Mutual Funds, predicting sustained growth in Nigeria’s retail investment market due to their versatility and high-yield potential.
