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Top 10 high-yield money market funds that beat inflation in Nigeria

Sometimes, the fear of poor stock market performance forces conservative and risk-averse investors to sit on their cash…



Top 10 high-yield money market funds that beat inflation in Nigeria

It is not uncommon, but a risk management strategy for investors (who worry that stocks are either too expensive or not performing well), to buy some downside protection with yield. On the alternative, sometimes, the fear of poor stock market performance forces conservative and risk-averse investors to sit on their cash rather than risk the possible loss in the market. But prudence requires striking a balance between sitting on “barren” cash and losing it all in the market. This is where money market funds come in and play that risk management role of not losing the yield that would have, otherwise, been lost if an investor sits on his or her cash instead of losing it all due to poor performance in the stock market.

Money Market Fund Yield Vs Inflation Rate

The role of money market funds in giving investors the best of both Worlds, is even more so when the yields on such funds out-pace the rate of inflation. The latest available data from the National Bureau of Statistics indicates that the rate of inflation moderated slightly in February to 11.31%. With that, inflation rate has fallen for the second consecutive month. This is good news given that inflation rate in Nigeria has historically averaged 12.46% since 1996 to 2019, although it reached an all time high of 47.56% in January 1996.


For investors, especially those investing in fixed income and money market funds, this news may be heart warming as the relationship between inflation and money market yield is an important decision variable. Analysts at Quantitative Financial Analytics went around to find out the current yield on money market funds in Nigeria with a view to comparing it with inflation.

According to the data gathered by Quantitative Financial Analytics, the average interest rate on money market funds is currently 13.06% per year. This means that with 11.31 percent annual inflation, N100,000 invested in a money market account at 13.06% percent would gain about N1,750 in purchasing power over the course of a year. That may not be too encouraging but it is better than losing out in purchasing power terms.

Shop Around for High Yield

Investors can do quite a bit better than 13.06% percent if they shop around for higher paying funds. To help in this shopping, here are the top 10 high yield money market mutual funds in Nigeria:

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(1) United Capital Money Market Fund:

Yield: 14.6%
Expense Ratio:1.6%
Fund Manager: United Capital Asset Management Company.

(2) FBN Money Market Fund:

Yield: 14.37%
Expense Ratio:0.9%
Fund Manager: FBN Asset Management Company.

(3) ARM Money Market Fund:


Yield: 13.76%
Expense Ratio: Not Available
Fund Manager: ARM Asset Management Company.

(4) Stanbic IBTC Money Market Fund:

Yield: 13.34%
Expense Ratio: Not Available
Fund Manager: Stanbic IBTC Asset Management Company.

(5) AIICO Money Market Fund:

Yield: 13.28%
Expense Ratio: Not Available
Fund Manager: AIICO Asset Management Company.

(6) Cordros Money Market Fund:


Yield: 13.27%
Annual Management Fee: 1%
Fund Manager: Cordros Asset Management Company.

(7) Coronation Money Market Fund:

Yield: 13.27%
Expense Ratio: 0.29%
Fund Manager: Coronation Asset Management Company.

(8) Greenwich Plus Money Market Fund:

Yield: 13.25%
Expense Ratio: Not Available
Fund Manager: Greenwich Asset Management Limited.

(9) PACAM Money Market Fund:

Yield: 12.96%
Annual Management Fee: 1%
Fund Manager: PACAM Asset Management Limited.

(10) AXA Money Market Fund:

Yield: 12.96%
Annual Management Fee: 1.25%
Fund Manager: AXA Asset Management Limited.

Uchenna Ndimele is the President of Quantitative Financial Analytics Ltd. and (both Quantitative Financial Analytics company website) is a leader in supplying mutual fund information, analysis, and commentary on African mutual funds. We provide reliable fund data; and ratings information that will add value to fund managers, the media, individual investors and investment clubs.



  1. Brian

    March 18, 2019 at 11:30 am

    Good job Team!

    Please could you elucidate what’s meant by expense ratio?

    Thank you in anticipation.

    • Emeka Mba

      March 19, 2019 at 4:23 pm

      Hi Brain. I believe is the total percentage of fund assets used for administrative purposes. Perhaps an annual management fee.

    • uchenna Ndimele

      March 21, 2019 at 3:39 am

      Fund managers charge fees to manage your fund, that is called management fee, some of them charge for making profits, that is performance fee, in addition, they charge for third party services like audit, legal, admin, etc. The percentage of the total of these fees in relation to the asset value of the fund, is the expense ratio. I will be doing a basic article on this

  2. Pelewura, Patrick

    March 18, 2019 at 8:48 pm

    Thank you for sharing your knowledge but would you please explain to me the meaning of:

    1. Expense ratio and
    2. Annual management fee

    Thanks in anticipation.

    • uchenna Ndimele

      March 21, 2019 at 3:40 am

      Thanks for your comment, I will do an article on the basic expense ratio and management fee, watch out for it

  3. Mena

    March 19, 2019 at 7:49 am

    Love the analysis. I’m informed. Thanks.

  4. Emeka Ogbonnaya

    March 29, 2019 at 7:10 pm

    Hey, thanks for this article.
    I’d really like to know if the yield is over 12 month period or 30 day period?

    • uchenna Ndimele

      April 2, 2019 at 12:45 pm

      Yes, those are annualized returns (over 12 months) and not monthly

  5. uchenna Ndimele

    April 2, 2019 at 12:44 pm

    Yes, those are annualized returns (over 12 months) and not monthly

  6. tolu

    April 5, 2019 at 10:51 am


    I wanted to make payment and subscribe for information about your capital market data but cannot seem to find it. Please guide? thanks!

  7. Chidi

    May 1, 2019 at 3:26 pm

    Is it better to buy a mutual fund with a a 100 naira value or 1 naira value. Those the value affect your overall interest. Thanks

  8. Stephen

    May 5, 2019 at 12:56 pm

    Can you shed more light on the monthly profit calculation of say a N100,000 money market fund investment please.

  9. Anonymous

    May 13, 2019 at 2:56 pm

    Thankx for the post pls which one do you recommend for newbies.

  10. Ani J. O.

    May 14, 2019 at 11:51 am

    I’m glad you shared your idea with us. Thank you

  11. Anonymous

    June 26, 2019 at 9:41 am

    Hi, thanks for the performance comparison. It’s not clear what period (year) these yields represent. Are these 2018 yields? Are you able to provide this detail please? Thank you.

  12. Uchey Ndimele

    June 27, 2019 at 12:08 pm

    The yields on the report were YTD yield as ta March 2019. I will do similar report soon

  13. Anonymous

    August 8, 2019 at 12:01 pm

    Good work, keep it up

  14. Ezinwa

    October 24, 2019 at 8:43 am

    Can you shed more light on the monthly profit calculation of say a N100,000 money market fund investment please.

  15. Anonymous

    March 9, 2020 at 5:43 pm

    This topic needs to refreshed or rejoinder provided considering the recent drop in T-Bill rates. The rates from these funds managers have dipped considerably. So Nairametrics Team, kindly advise us again on those investments that can beat inflation in Nigeria today.

    • Olakanmi

      March 16, 2020 at 1:07 pm

      Yes, please answer the question. We are waiting for it please.

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Economy & Politics

Lagos to shut down Marine Beach bridge for emergency repairs

The closure will allow the Federal Ministry of Works to carry out emergency repairs on the bridge, in line with the government’s vision of providing a better transportation system in the state.



Lagos state government has announced that the Apapa Marine Beach bridge will be closed for five months, from Wednesday 27th May, to Wednesday 21st October, 2020.

The closure will allow the Federal Ministry of Works to carry out emergency repairs on the bridge, in line with the government’s vision of providing a better transportation system in the state.


In a statement from the Lagos state Ministry of Transportation, the Commissioner, Dr. Frederic Oladeinde, noted that the repairs were long overdue, and necessary to ensure safety of Lagosians, given the number of motorists that use the route.

The Commissioner noted that the repairs included bearing and expansion joint replacement and would be executed in two phases, taking one lane of the bridge at a time.

The first phase will involve handling the lane inbound Apapa while the second phase will be designated to work on the lane that conveys vehicles outside the axis,” he said.

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Alternative routes

Oladeinde noted that alternative routes around the bridge had been improved to make them motorable, and ease movements for road users.

To manage the construction period, the statement noted that Traffic Management Authorities would be hard at work to ameliorate the expected traffic issues and supervise other arrangements.

“Motorists inwards Wharf road will be diverted to the other section of the bridge outwards Apapa, a contraflow of 200metres has been put in place for vehicles to realign with a proper direction inwards Ajegunle or Wharf road, Apapa, while Motorists descending to Total Gas under bridge will drive without any hindrance,” it read.

The Commissioner called for the understanding and cooperation of motorists and road users during the period to ensure a smooth flow of plans.

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Economy & Politics

Fayemi set to activate digital economy with N5billion broadband infrastructure

Governor Fayemi plans to activate Ekiti state’s digital economy, this would help generate healthy competition within the ICT sector



Fayemi set to activate digital economy with N5billion broadband infrastructure in Ekiti state

Ekiti state government has concluded plans to create a digital hub, with the laying of a 606-kilometer broadband infrastructure.

The project is expected to lift the state from 16% internet penetration to 90% and is estimated to be worth N5 billion, with the Federal Government contributing N1.1 billion of the total sum.


This plan is part of the memorandum of Understanding (MoU) which the state Governor signed with O’odua Infraco Resources Limited, a consortium that develops high speed and efficient Fibre Optic Cable (FOC) Open Access Network (OAN) across the South-West region of Nigeria.

According to the Managing Director of O’odua Infraco Resources Limited, Mr Sammy Adigun, the project will be officially flagged off in October and completed within 14 months.

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(READ MORE: What Nigeria stands to gain from new National Broadband Plan)

This decision is a follow-up to the recent crash of Right of Way charges from N4,500 to N145 per meter for broadband infrastructure, and in line with one of the five pillars of Governor Kayode Fayemi’s development plan for Ekiti state.

The Governor noted that these decisions would help generate healthy competition within the ICT sector, thus activating Ekiti state’s digital economy and digital education.

Fayemi noted that the project execution, as well as the broadband policy in the state would be coordinated and supervised by a Digital Infrastructural Committee, made up of various relevant government institutions critical to the implementation of the project.

“For us the roadmap is first the fibre connectivity itself, the second is the adequate data center infrastructure, the third is the e-learning programme which will cover our educational institutions, then our safe city, our security programme will also be included.


“With our geographical land information system (GIS), we would digitalize all our land records, and of course, commercial investment as well as digitalisation of our government assets and our health education initiative,” Fayemi explained.


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Economy & Politics

NCC reacts to claims that minister chased Diaspora Commission’s staff from office complex

The NCC denies claims of the video on social media, pointing out that the staffs of NIDCOM were not sent packing from the digital economy complex



NCC orders immediate suspension of USSD charges by telcos, 5G Network to undergo 3 months trial before approval - NCC , NCC licenses 20 new Internet service providers amidst challenges , 150 million Nigerians risk being defrauded – NCC , NCC warns telcos against cyber fraudsters , NCC rolls out new regulations on drone use, NCC licenses 10 new VAS providers as it projects market to hit $500 million , NCC, Infracos set to develop broadband infrastructure with N265 billion raise , Telecommunications: Broadband penetration set to grow, Telecoms operators fined N2.9 billion over infractions , NCC reacts to claims that minister chased away diaspora commission staff from office complex

The Nigerian Communications Commission (NCC) has reacted to claims by the Chief Executive of Nigeria Diaspora Commission (NIDCOM), Abike Dabiri-Erewa, that her staff members were chased out of its premises by armed men on the orders of the Minister for Communication and Digital Economy, Isa Pantami.

The NCC, through a press statement on May 24, 2020 signed by its Director, Public Affairs, Dr. Henry Nkemadu, has said that nothing of such happened as it denied claims in a video making rounds on social media that the staff of NIDCOM were sent packing from the digital economy complex.


According to the press statement from NCC:

Following the completion of the NCC building at Mbora, Abuja designated as NCC Annex and the acute shortage of accommodation space for the staff of the commission in the NCC head office at Maitama, Abuja, the Board of the commission directed the decongestion of the Head office building. Some of the departments of the NCC had started moving to the new office complex of 5 floors when discussions were held between the NCC and the Diaspora Commission to enable the Diaspora Commission also utilize any free offices within the complex.

“The fifth floor allocated to them had to be used to accommodate other departments from the NCC headquarters to ease the congestion. NCC’s offer to house the Nigeria Diaspora Commission was predicated on the long held position of the NCC that agencies of government will achieve more through strategic collaboration, partnership, synergy and sharing to the extent allowed by relevant laws.”

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(READ MORE: PenCom dissolves interim management committee for First Guarantee Pension, appoints new board)

NCC disclosed that it had secured approval for the commissioning of the office complex by President Buhari, and also the launching of 4 important projects of NCC, together with the renamed Ministry of Federal Ministry of Communication and Digital Economy.

It also stated that the offer to NIDCOM had not been withdrawn, but had only hit a bump arising from the preparation for the visit of President Buhari to launch the projects and inaugurate the complex. It said that the Board and Management of NCC took a decision to ensure that every activity in the building was in line with the Federal Government’s agenda.

Going further, the statement reads:

“Incidentally, after the offer of the office spaces to the Diaspora Commission, the Director General, Mrs. Abike Dabiri-Erewa had not visited the complex to take possession of any of the offices and also the commission had not started using any of these spaces as offices.


‘’As is usual in ensuring security and accountability before, during and after presidential visits, the building had to be cleared to allow for only known and identifiable persons to have access within the complex. Therefore, the Honourable Minister of the Federal Ministry of Communications and Digital Economy Dr. Isa Ali Ibrahim Pantami could not have sent armed men to drive the staff of the Diaspora Commission out of the Communication Economy Complex.”

The statement also pointed out that as at that time, only NCC staff were accredited to have access within the premises and that all properties belonging to NIDCOM were safely warehoused in some of the offices within the complex.

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