Nigeria’s mutual fund industry has continued to evolve as investors search for higher returns while navigating inflation, currency volatility, and changing interest-rate dynamics.
While conservative funds, such as money market and fixed-income mutual fund types, still dominate asset allocation, equity-based mutual funds remain the segment where the highest returns are typically generated.
As of February 2026, 20 equity-based mutual funds collectively manage N148.19 billion, representing 1.80% of the entire mutual fund industry, and a total of 79,757 unitholders.
Although the fund type is relatively small in size by the net asset value (NAV) compared to other fund categories, it remains critical for investors seeking long-term capital appreciation through exposure to the Nigerian stock market.
The strong performance of several equity funds reflects the broader rally in Nigerian equities in early 2026, particularly across banking, industrial, and energy stocks, which have driven much of the market’s gains.
Notably, the top 10 performing equity funds account for N67.51 billion in assets, representing 45.560% of the total equity-fund segment. This highlights a common pattern within the industry, where a relatively small group of funds often drives the strongest performance and investor interest.
Below is a closer look at the top 10 performing equity-based mutual funds by year-to-date (YTD) yield as of February 2026.
The ARM Aggressive Growth Fund, managed by ARM Investment Managers Limited, stands clearly at the top of the ranking with an impressive 137.41% year-to-date yield. Although the yield may appear unusually high, it is based on data reported by the Securities and Exchange Commission (SEC).
It is an open‑ended unit trust, designed for investors who seek long‑term capital growth and can tolerate significant market volatility.
The fund currently manages N11.47 billion in assets, representing 7.74% of the equity fund segment. With 9,277 unitholders, it reflects strong investor participation and confidence in its strategy.
Its bid price stands at N64.53 while the offer price is N66.47, reflecting strong underlying portfolio performance driven largely by equity market gains.
What you should know
A closer look at the rankings reveals a few notable trends shaping Nigeria’s equity mutual fund landscape.
First, returns vary significantly across funds, with top-performing funds delivering over 137% YTD returns, while most of the others fall within the 28% to 45% range.
Second, asset size does not always determine performance. Some of the best-performing funds, such as the Halo Equity Fund and PACAM Equity Fund, manage relatively small portfolios but still generate strong returns.
Third, the largest funds in the segment, such as the Paramount Equity Fund and Zrosk Magna Equity Fund, remain among the key drivers of investor participation, supported by their sizable assets and broader investor bases.
Outlook for equity mutual funds
Although equity-based mutual funds account for only N148.19 billion of total industry assets, they continue to play a vital role in providing investors with direct exposure to Nigeria’s equity market through professionally managed portfolios.
The fact that the top 10 funds alone manage N67.51 billion in assets also highlights the concentration of investor confidence in a relatively small group of strong-performing managers.
Going forward, the performance of equity funds will largely depend on stock market conditions, macroeconomic stability, and investor risk appetite.
