mutual funds in nigeria

Excellent Mutual Funds In Nigeria to Consider In 2021

If you are looking for passive income in Nigeria, then you should consider investing in mutual funds. A lot of investors in Nigeria have started leveraging the massive potentials of mutual funds investment. According to SEC data, there are currently about 107 mutual funds you can invest in in Nigeria.

Mutual funds types in Nigeria include Bond funds, Traded funds, Ethical funds, Equity-based funds, Money Market funds, Fixed income funds, Mixed funds, Exchange Traded funds, and Real Estate funds.

What Are Mutual Funds?

What is mutual funds

Mutual funds are investment units that involve pooling funds from multiple investors, which will be invested in securities such as money market instruments, stock, bonds and other similar assets.

Mutual funds can also be better explained as a group of people who put an equal amount of money in a box. In simpler terms, they would have been said to have mutually funded the box.

Mutual funds are run by professionals who are known as fund managers. They invest the funds pooled by investors in areas that are expected to produce capital gains for the investors. Some of the diversified investments that may be considered include agricultural produce, securities, and bonds.

There is the investment catalogue that reveals where your investment goes. Profit made from the investments are distributed among the investors as specified in the mutual fund.

Best Mutual Funds in Nigeria

If you are looking for excellent mutual funds in Nigeria to consider, here are options to consider.

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1. FBN Nigeria Smart Beta Equity

The FBN Nigeria Smart Beta Equity is a mutual fund in Nigeria that invests in diverse Nigeria companies that have been subjected to rigorous research and test evaluation systems. They preserve their long-term capital before putting in about 75% of their assets in a diversified portfolio of reputable institutions enumerated on the Nigeria Stock Exchange.

The company also has about 25% of assets invested in deposits and short-term money market instruments with financial institutions that can help manage liquidity.

This mutual fund is quite impressive with its competitive returns that you should consider. Investors who are looking for long-term investments with a measure of high-risk will find this assuring. The minimum investment amount is N50,000.

2. Stanbic IBTC Nigerian Equity Fund

The focus of the Stanbic IBTC Equity Fund is to achieve long term capital appreciation through a 30% maximum of high-quality fixed income securities and at least 70% investment of the portfolio of equities.

The mutual funds are not concentrated on limited investment. This is to help reduce the possible risks of investments by spreading across a wide range of assets.

They focus largely on high-net worth investors but they have other funds that permits the participation of almost anyone. Minimum amount that can be invested is N5,000, and they offer a minimum holding period of 90 days.

3. Vantage Balanced Fund

Investment One Vantage Balanced Fund, formerly known as NIGFUND, is specifically designed to maintain the distribution of regular income and maximize long term capital growth. It has been licensed by the Securities and Exchange Commissions (SEC) to manage mutual funds.

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Vantage Balanced Fund is suitable to investors who can only accommodate medium risks as it provides several investment assets to potential investors. The least investment allowed is N10,000 with extra investment available in multiple of N1,000.

4. United Capital Bond Fund

United Capital Bond Fund is geared towards achieving steady streams of income for potential investors through moderate risk investments in fixed income securities with potential upside.

The fund invests in top-level institutions (including the Federal Government of Nigeria) that float Eurobonds that are dollar dominated. It offers competitive capital appreciation of short or medium term for investors. It permits a $1,000 (10 units) investment minimum and multiples of 5 units afterwards.

Unlike the average domiciliary deposit account, Investors are open to earn better with these funds. However, some of the potential risks to be aware of include risks on interest rate, Credit risks, and macroeconomic instability.

5. Vetica Industrial ETF

Vetiva Industrial ETF (also known as VETIND ETF) is managed by Vetiva Funds managers Limited. It is an open-ended fund that is specifically designed to keep a close record of the performance of the NSE Industrial Index constituent companies and to also reproduce the performance of the Nigerian Stock Exchange (NSE) industrial Index – which are the top 10 companies of the listed on the NSE – price and yields.

This is one of the well-performing mutual funds in Nigeria to consider in 2021 for investors who are interested in Nigerian industrial companies. It significantly characterizes the component securities of the Industrial Index of Nigerian Stock Exchange.

6. Legacy USD Bond Fund

Legacy USD Bond Fund is a US Dollar dominated collective investment Scheme that has been registered with the Securities & Exchange Commission. The fund was launched on the 8th January, 2018, and was on the NSE list on 23rd April, 2018. It is focused on the stability of long-term generated income for its investors.

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The company has a customer Portal where investors can check out their holding in the Legacy USD Bond Fund. You’ll receive your login details via email once you register.

Legacy USD Bond Fund has 2-year Nigerian Government USD Eurobond yield, zero risk, and required minimum subscription of 1,500 units to initially be made with additional purchase of 1,000 units. It has an investment period of 6 months.

7. Stanbic IBTC Aggressive Fund

The Stanbic IBTC Aggressive Fund was launched in 2012 and has an objective of providing liquidity with assured attractive long-term returns. It invests a maximum of 40% in fixed income securities and at least 60% of the Net Asset Value in equities.

It mitigates the risks of investments by initiating investments across a wide range of assets. Redeeming investments is also easy through the different investment products they offer to meet investors’ needs. You will be able to transact with this fund with all their online platforms, whether on desktop or mobile, and from anywhere around the globe.

The Stanbic IBTC Aggressive Fund is an open-ended Fund, its management fee is 1% and it has a minimum investment amount of N20 million.

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