Investors will be looking to cash in on some of their investments across several portfolios, as the year gradually comes to an end. Mutual funds are one of the few available investment funds with positive yields in Nigeria.
According to data from the Security and Exchange Commission (SEC), 62.2% of the 112 registered funds recorded positive growth in the month of November, 34.4% maintained their initial unit prices, while only 6 funds recorded negative growth.
As of 27th November 2020, the Security and Exchange Commission (SEC) registered a total of 112 mutual funds with over N1.55 trillion net asset value cutting across several fund types. Below is a breakdown of the fund types available to investors.
Nairametrics reviews the best Mutual Funds in the month of November, judging by their performance.
To determine the best performing Funds, we surveyed the Fund Prices as of 27th November and compared these to the Fund Prices as of the last trading day of October 2020 (30th October).
These are the top 5 mutual funds in November. We also highlighted their performance in terms of changes in net asset value and included profiles of the Funds as described on their websites.
Stanbic IBTC ETF 30 Fund – Stanbic IBTC Asset Management Limited (Exchange Traded Funds)
Stanbic IBTC ETF 30 was launched in January 2015. The fund invests 100% of its portfolio on equities. It is an aggressive risk profile Fund that aims to replicate as closely as possible, before fees and expenses, the total return of the NSE 30 Index in terms of its price performance as well as income from the underlying securities of the index.
Fund Price – N80.30
Fund Price – N105.00
Return – 30.76%
Ranking – First
Commentary: The Stanbic IBTC ETF 30 Fund is the best performing fund in the month of November, with the price growing by 30.76%. The net asset value also increased by 10.76% to stand at N509.94 million as of 27th November 2020. The performance of the fund can be attributed to the positive performance of the Nigerian Stock Exchange in the month of November.
Coral Growth Fund – FSDH Asset Management Limited (Mixed Funds)
The Coral Growth Fund “CGF” launched in February 2001 is an open-ended equity-based unit trust scheme that invests a maximum of 65% of its assets in equity securities quoted on the Nigerian Stock Exchange (NSE) and a minimum of 35% in investment-grade fixed-income investments.
Fund Price – N3,478.91
Fund Price – N4,450.01
Return – 27.91%
Ranking – Second
Commentary: This is a Mixed Funds by FSDH Asset Management Limited. The Price grew by 27.91% in the month of November. The net asset value also increased by 29.1% to stand at N2.49 billion as of 27th November 2020.
ARM Aggressive Growth Fund – Asset & Resources Management Company Limited (Equity-Based Funds)
ARM Aggressive Growth Fund established in April 2004 is an Equity-Based Fund that invests primarily in equities and as such seeks to provide superior long-term protection against inflation to investors with a high-risk appetite. The high risk of equities is lowered by also investing in fixed income securities, which provides a fairly predictable income stream and easy access to Investors’ money.
Fund Price – N14.90
Fund Price – N18.71
Return – 25.54%
Ranking – Third
Commentary: The Fund price grew by 25.54% in the month of November, an impressive performance largely attributed to the bullish run of performance by the equities market. The net asset value also grew by 23.77% to stand at N2.69 billion as of 27th November 2020.
VI ETF – Vetiva Fund Managers Limited (Exchange Traded Funds)
The Vetiva Industrial ETF “VETIND ETF” is an open-ended Exchange Traded Fund managed by Vetiva Fund Managers Limited. The VETIND ETF is designed to track the performance of the constituent companies of the NSE Industrial Index and replicate the price and yield performance of the Index.
The NSE Industrial Index comprises the top 10 companies in the Industrial sector listed on the Nigerian Stock Exchange (NSE), in terms of market capitalization and liquidity and is a price index weighted by adjusted market capitalization.
Fund Price – N12.87
Fund Price – N15.80
Return – 22.77%
Ranking – Fourth
Commentary: VI ETF is the second Exchange Traded Fund on the list of best performing Mutual Funds in the month of November. The price grew by 22.77% while the net asset value also grew by 28.75% to stand at N174.42 million as of 27th November 2020.
ARM Discovery Balanced Fund – Asset & Resources Management Company Limited (Mixed Funds)
The ARM Balanced Fund is an open-ended fund formerly known as the Equity Growth Fund (EGF), before being changed to ARM Discovery Fund in 2002. ARM Discovery Balanced Fund invests in; Equities (40% – 65%), Fixed income securities (15%-30%), Real estate (15%-30%), and Cash (1%-10%).
Fund Price – N351.92
Fund Price – N413.64
Return – 17.54%
Ranking – Fifth
Commentary: The ARM Discovery Balanced Fund is the second Mixed Funds on the list of best performing Mutual Funds in the month of November and the second by Asset & Resources Management Company Limited. The price grew by 17.54%. The net asset value also increased by 17.07% to stand at N4.08 billion as of 27th November 2020.
The following Funds make up the rest of the top 10 on our list in descending order;
PACAM Equity Fund – PAC Asset Management Limited (Equity-Based Funds)
Return – 16.77%
Vantage Equity Income Fund – Investment One Funds Management Limited (Equity-Based Funds)
Return – 16.16%
VG 30 ETF– Vetiva Fund Managers Limited (Exchange Traded Funds)
Return – 12.81%
Lead Balanced Fund – Lead Asset Management Limited (Mixed Funds)
Return – 12.68%
Women Investment Fund – Chapel Hill Denham Asset Management Limited (Mixed Funds)
Return – 12.35%