The Nigerian stock market started 2025 on a positive trajectory, with the All-Share Index (ASI) gaining 1.53% in January. This growth has set the tone for equity-based collective investment funds, whose performance is closely tied to the stock market. Investors looking to diversify their portfolios have increasingly turned to these funds, benefiting from professional management and risk mitigation strategies.
Among the top-performing funds, the Halo Equity Fund led the pack with an impressive 110.79% year-to-date (YtD) return, continuing its high-growth trend from 2024. However, its small market size and concentrated investor base raise concerns about volatility and sustainability. The Frontier Fund, with a YtD return of 72.24%, followed closely behind, boasting a larger investor base and a strong market presence.
More conservative funds showed steady growth, with the Guaranty Trust Equity Income Fund posting a 6.16% YtD return, supported by a sizable Net Asset Value (NAV) of N641.688 billion and high liquidity. The Stanbic IBTC Aggressive Fund delivered a 4.69% return, reinforcing its long-term growth potential, while the Meristem Equity Market Fund closed the top five with a 4.56% return, backed by investor confidence and a balanced risk profile.
The SEC valuation reports provide key insights for investors, highlighting trends in the equity-based investment space. High-risk investors may be drawn to the high returns of funds like Halo and Frontier, while those seeking stability might opt for Guaranty Trust or Meristem. Liquidity, fund size, and bid-ask spreads remain crucial factors in investment decisions.
As the Nigerian stock market continues its upward momentum, investors must assess their risk tolerance and investment goals when selecting funds. While past performance offers guidance, future market conditions and fund management strategies will ultimately shape returns in 2025.
Source: Nariametrics