The momentum in Mutual Funds investment has surged by a staggering 82.2% year-on-year, reaching a substantial Net Asset Value (NAV) of N2.82 trillion in February 2024, up from N1.55 trillion in the same period of 2023, propelled by favourable interest rates and robust demand.
Mutual funds serve as a collective investment platform, pooling funds from investors and professionally managed through strategic allocations across money and capital market assets.
According to data from the Securities and Exchange Commission (SEC), Dollar/Fixed Income Funds emerged with the highest NAV, totalling N1.354 trillion, a significant leap from N315.8 billion recorded in 2023’s corresponding period.
This segment accounted for 48.06% of the total NAV, with Stanbic IBTC Asset Management leading the pack, contributing N803.5 billion, representing 59% of the total NAV, followed by United Capital Asset Management and FBNQUEST Asset Management.
Money Market Funds secured the second spot in the Mutual Funds market, amassing a total NAV of N949.382 billion, capturing 33.69% of the overall NAV. Stanbic IBTC Asset Management dominated this segment with N428.6 billion, trailed by FBNQUEST Asset Management and Asset Resources.
Bond/Fixed Funds ranked third in the sectoral analysis, posting N315.837 billion and accounting for 20.41% of the total NAV.
Ambrose Omordion, Chief Operating Officer at InvestData Limited, attributed the surge in Mutual Funds’ value to its diverse investment opportunities and varying windows.
Dollar/Fixed Income Funds particularly thrived due to the appreciating value of the Dollar, while Money Market Funds benefited from favorable interest rates and high demand, unlike equities, which have seen fluctuating returns on investment.
