The appetite of Nigerian investors for Mutual Funds has surged with its total asset under management increasing by 80.8% Year on Year, YoY, to N4.1 trillion on January 24, 2025 from N2.3 trillion in the corresponding period 2024.

Data released by the Securities and Exchange Commission (SEC), has shown that Money Market Funds were the most patronised as it recorded the highest asset value of N1.887 trillion and accounted for 45.81% of the total Net Asset Value, NAV of the Mutual Funds.

Stanbic IBTC Asset Management’s Money Market Fund was the most active accounting for 45.83% of the Fund’s NAV. Following it was FBNQuest recording 20.43% of the NAV, while Cardinalstone Money Market Fund accounted for 7.5% of the NAV.

The Fixed Income Funds trailed the Money Market Funds recording N1.788 trillion and accounted for 43.41% of the total NAV of the Mutual Funds, while Bond /Fixed Income Funds occupied the third position on the chart recording N193.295 billion, accounting for 4.69% of the total NAV of the Mutual Funds.

Analysts noted that the growth trend highlights a strategic shift by Nigerian investors seeking to hedge against rising inflation and exchange rate volatility.

Commenting on the Mutual Funds investment, Tajudeen Olayinka, Investment Banker /Chartered Stockbroker, said: “The inflow into mutual funds is particularly noteworthy as investors look for high-yielding low-risk opportunities, gravitating towards Money Market Funds Fixed-income and Bond Funds”.

In his own remarks, Michael Oyebola, Managing Director/CEO, Money Counsellors, said: “It is remarkable feat for the Nigerian financial market, the country’s Mutual Funds industry has achieved a momentous milestone in the period under review hitting above N4.0 trillion. This remarkable achievement reflects the growing confidence of investors using Mutual Funds to invest and grow their savings.

“Also, the substantial growth in the Mutual Funds industry can be attributed to various factors, including some level of increased financial literacy among the population as well as the ongoing bull stock market. For the Money Market Funds, the high interest regime of the government is driving that Fund”.