Though the stock market has been anything but impressive so far this year, some mutual funds have been able to weather the storm with some positive performances.
Though the performances are below analysts and investors expectations, given the prevailing circumstances and market conditions one could only be grateful for what they got and hope and pray for better days ahead.
A comparative analysis indicates that almost half of the entire mutual funds made positive YTD returns as at August 31. According to the analysis, most of the best performing funds are funds that invest in fixed income instruments. This is quite understandable given the prevailing trends in the stock market and low-interest rates that held sway for almost half of the year. The low yields insured that fixed income prices went up given the inverse relationship between interest rate and bonds.
Yields are, however, beginning inching up and it stands to be seen how many of the fixed income funds will continue this positive performance run till year end. Nigeria All-Share Index turned in a Year-To-Date return of -8.83% as at August 31, 2018.
Criteria for Selection
The selection is based on analysis conducted by Quantitative Financial Analytics based on available information curated from different sources. The according factors in changes in unit prices as well as estimated capital activities based on results of flow analysis based on the NAV summary report from the Security and Exchange Commission, SEC.
Best Performing Fund:
Name of Fund: EDC Fixed Income Fund
Type of Fund: Fixed Income Fund
YTD Performance %: 17.17%
YTD Gain per unit: N196.64
Second Best Performing Fund:
Name of Fund: Stanbic IBTC Pension ETF 40
Type of Fund: Exchange Traded Fund
YTD Performance %: 16.37%
YTD Gain per unit: N22.13
3rd Best Performing Fund:
Name of Fund: Coronation Balanced Fund
Type of Fund: Balanced or Mixed Fund
YTD Performance %: 12.08%
YTD Gain per unit: N0.13
4th Best Performing Fund:
Name of Fund: Nigeria International Debt Fund
Type of Fund: Debt or Fixed Income Fund
YTD Performance %: 11.69%
YTD Gain per unit: N27.75
5th Best Performing Fund:
Name of Fund: Lead Fixed Income Fund
Type of Fund: Debt or Fixed Income Fund
YTD Performance %: 11.67%
YTD Gain per unit: N13.78
6th Best Performing Fund:
Name of Fund: SFS Fixed Income Fund
Type of Fund: Debt or Fixed Income Fund
YTD Performance %: 10.81%
YTD Gain per unit: N0.16
You did not show which were the “worst” performing mutual funds.
We will be publishing the worst too, thanks
Where is the worst list you promised to publish?
Can one lose money in equity funds? If you were to invest with an equity fund, which asset management company will you use?
Yes, one can lose money in equity funds especially when the stock market is not doing quite good because the equity funds are more aligned with the market. Currently, all the losing funds are equity and equity based etfs
If i were to invest in equity funds, I will invest with Stanbic IBTC, because of their performance and most especially, their transparency in reporting daily prices as well as fact sheets and other report.
Hope that answers your questions. Good luck
For an income earner trying to invest for the future what sort of investment would you advise?
As a salary earner, what investment would you suggest for someone trying to save for the future ?