• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

The State of the Nigerian Mutual Funds Industry

Uche Ndimele by Uche Ndimele
August 24, 2019
in Business News, Funds Management, Markets, Securities
Mutual Funds, Mutual Fund gone bad: Nigerian investor discloses his 10 years investment that nosedived , Nigeria’s mutual fund asset value reaches N1 Trillion
Share on FacebookShare on TwitterShare on Linkedin

Though mutual funds are not as popular in Nigeria as stocks, a sizable number of investors have purchased and keep purchasing mutual funds in addition to or instead of buying individual stocks. That is the reason why the Net Asset Value of all mutual funds (including exchange-traded funds) in Nigeria keeps rising, week after week and is currently in the neighbourhood of N830 billion.

Why Buy Mutual Funds?

For those wondering why they or anyone should invest in mutual funds, there are good reasons to do so. Mutual funds provide the benefits of diversification and professional asset selection and management.

When one owns a basket of securities through investments in a mutual fund, instead of individual security, he or she is exposed to much less individual stock risk. However, the ownership of mutual funds does not insulate an investor from non-diversifiable risks, otherwise called market risk.

RelatedStories

How to Invest in Mutual Funds in 2025!

How to Invest in Mutual Funds in 2025!

February 21, 2025
NGX

Nigerian Stocks post solid gains as January ends in green 

February 2, 2025

[READ MORE: A guide to how Mutual Funds work in Nigeria]

Current Total Fund Assets

As of August 2, 2019, the Nigerian mutual fund industry had a total asset value of N834.3 billion, an increase of 28.7% from the 2018-year end total asset value of N651 billion. Exactly one year ago, on August 2, 2018, the Net Asset Value (NAV) of mutual funds in Nigeria stood at N654.5 billion, meaning that there has been an increase of 27.47% since then.

Mutual-Funds

Flow report as a measure of the state of the mutual fund industry

One of the ways to decipher the state of the mutual fund industry is through fund flows. Fund flow is a metric or statistic that analyzes whether investors are putting money into, or taking money out of, mutual funds over the course of a specified period. Nigerian mutual funds have recorded positive net flows for many weeks since 2015 although at a varying pace each week.

Since the beginning of the year, 2019, total inflows of about N265.4 billion have been recorded while the outflow for the corresponding period is about N77.2 billion. Though this is encouraging, it is slightly less impressive when compared with the flow report within a similar period in 2018. From January 1st, 2018 to August 2nd, 2018, the Nigerian mutual fund industry recorded a total inflow of N273.2 billion and total outflow of N47.7 billion. Understandably, the yield was higher in 2018 than in 2019.

Money Market Funds Fly High

The majority of the increase in net asset value came from money market funds, where rising yield during the first two quarters of the year and risk aversion by investors, combined to push the asset value of money market funds up. As has been the character of Nigerian mutual fund investors, much of the new investments in mutual funds were directed to money market funds.  Of that N265.4 billion inflow, N192 billion was directed to money market funds, which also suffered the highest outflow of N54 billion.

[READ ALSO: 20 Financial Terms You Need To Know In The Stock Market]

FBN Money market fund generated the highest inflow of N66.08 billion as well as the highest fund level outflow of N25.3 billion, followed by Stanbic IBTC money market fund with inflows totalling N56 billion and N7.2 billion in outflows.

Investors Fall in Love with Euro Funds

It appears that Nigerians’ love for anything imported is expanding towards the mutual fund industry. Eurobond funds generated the second-highest inflow, after money market funds, and surprisingly, higher than what bond or fixed-income funds attracted. Eurobond funds recorded a year to date YTD inflow of N41 billion, thanks to Stanbic IBTC Dollar Fund and United Capital Eurobond fund that attracted N30.2 billion and N8.4 billion respectively.

Eurobond funds

Collectively, however, the Eurobond funds suffered an outflow of N8.5 billion. The love for Euro bond funds may be as a realization by Nigerian investors that such investments could act as a hedge against a falling Naira and that investments in Eurobond funds have the potential of benefiting from price increase (unrealized capital gain) as well as changes in the exchange rate (exchange gain).

Bond and Infrastructure Funds Too

Bond funds, which recorded the third highest inflow of N12 billion, suffered outflow of N8.1 billion. Much of the inflow came from Stanbic IBTC Absolute fund and SFS Fixed income fund. Infrastructure fund category, a category that houses only Chapel Hill Denham Nigeria Infrastructure fund, saw  N11.8 billion flowing in with only N1.8 billion leaving the fund. This indicates that investors believe that there could be some hidden benefits to be gained from infrastructural investments.

[READ FURTHER: How to Know If It’s A Ponzi Scheme]

Ethical and Exchange Traded Funds not as Good

Generally, every category of mutual funds recorded positive flows on a year to date basis except Ethical funds and Exchange Traded funds where the inflows were not big enough to compensate for the outflows.

Increase in Number of Mutual Funds

It was not only the Net Asset Value (NAV) that increased, the number of funds that are registered with the Security and Exchange Commission, SEC, increased by 7, according to the SEC NAV Summary Report. Among the funds that got added are GDL Money Market Fund, Lead Balanced Fund, Legacy Money Market Fund, PACAM Equity Fund, PACAM Eurobond Fund, Vantage Dollar Fund and Vantage Equity Fund.

That brings to 98, the total number of mutual funds in Nigeria per the SEC NAV Summary Report. 18 of those 98 are equity-based funds, 19 are bond funds, 20, money market funds, 3 Real Estate Investment Trusts, 14 Balanced funds, 5 Ethical funds, 9 ETFs, 2 Target Date funds, 7 Eurobond funds and 1 Infrastructure fund.

The Conclusion is that the state of the Nigerian mutual fund industry is strong and that strength and growth are expected to continue.

[READ MORE: Nigeria’s Mutual Fund asset value may reach N1tn before December 2019]


Follow us for Breaking News and Market Intelligence.
Tags: Eurobond fundsFBN Money Market FundMutual FundsNigerian StocksOn the MoneyStanbic IBTC Money Market FundUnited Capital Eurobond fund
Uche Ndimele

Uche Ndimele

Uchenna Ndimele is the President of Quantitative Financial Analytics Ltd. MutualfundsAfrica.com and mutualfundsnigeria.com (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.

Related Posts

How to Invest in Mutual Funds in 2025!
Digital Media

How to Invest in Mutual Funds in 2025!

February 21, 2025
NGX
Equities

Nigerian Stocks post solid gains as January ends in green 

February 2, 2025
Where should Nigerians invest N1 million this year? 
Financial Analysis

Where should Nigerians invest N1 million this year? 

January 4, 2025
NGX
Equities

Eight Nigerian stocks soar to triple-digit YtD gains as of August 2024 

September 3, 2024
Nigerian Stock Exchange
Markets

Nigerian Stocks lose N334 billion in market cap as bears takeover July 

July 15, 2024
NGX
Equities

Nigerian stocks you can invest in H2’2024 – Investment analysts  

July 3, 2024
Next Post
inflation rates

The worst financial decision you can make         

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

first bank








DUNS

Recent News

  • PTML Customs revenue hits N204.7 billion in H1 2025, up 34.1% with B’Odogwu platform 
  • President Tinubu approves South-East Investment Company with N150 billion capital base 
  • Lagos State to establish 5 new technical colleges across state to boost vocational education 

Follow us on social media:

Recent News

NCS

PTML Customs revenue hits N204.7 billion in H1 2025, up 34.1% with B’Odogwu platform 

July 18, 2025
Under Tinubu, a blueprint for Nigeria’s consumer credit economy is quietly unfolding 

President Tinubu approves South-East Investment Company with N150 billion capital base 

July 18, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics