Nigeria’s mutual fund industry maintained its strong growth trajectory, with total assets under management (AUM) reaching N5.94 trillion in the first half of the year.
The figure represents approximately 104.7 per cent increase compared to the N2.9 trillion recorded in the corresponding period of 2024. The surge reflects deepening investor confidence and a strategic search for high-yield assets amid the country’s elevated interest rate regime.
The latest figures, covering 205 mutual and exchange-traded funds (ETFs) confirmed the growing momentum observed earlier in May when the industry had already hit N5.61 trillion. This growth was driven by increased retail and institutional participation as well as product innovation and improved fund performance.
The overall picture for the mutual fund sector in the first half of 2025 was one of resilience, adaptation and renewed interest. With nearly N6 trillion in managed assets and a diversified portfolio of fund types meeting the needs of various risk profiles, the industry not only achieved scale but also demonstrated strong performance fundamentals.
The combination of robust returns, rising inflows, and improved product innovation suggests that the Nigerian mutual fund market is well-positioned for sustained growth in the second half of the year.
The composition of the AUM remained heavily tilted in favour of lower-risk asset classes. Money Market Funds continued to dominate the landscape, accounting for approximately N2.99 trillion, which represented over half of total industry assets.
Fixed-income funds followed closely with around N1.94 trillion, reflecting strong investor demand for stable and predictable returns. Real Estate Investment Trusts (REITs) also gained some traction, accounting for N356 billion in managed assets.
Performance across fund types varied, with equity and balanced funds outperforming expectations. In the equity space, funds such as the Guaranty Trust Equity Income Fund posted impressive year-to-date (YTD) returns of over 43 per cent, while the Paramount Equity Fund returned approximately 31.84 per cent YTD. The Halo Equity Fund also performed strongly, yielding 29.63 per cent YTD. Afrinvest and Anchoria Equity funds both delivered returns of about 22.59 per cent YTD, affirming the bullish sentiment in the equities market throughout the first half of the year.
Fixed-income funds, though more conservative in strategy, also managed to deliver decent yields. The Coral Income Fund led with a YTD return of about 5.73 per cent, while the ARM Fixed Income Fund followed closely with 3.76 per cent.
These returns, while modest compared to equities, were consistent with the funds’ low-risk investment objectives and offered attractive alternatives to investors seeking capital preservation with moderate income.
Money Market Funds remained the most attractive destination for investors focused on liquidity and capital safety. As of early June 2025, annualised returns on these funds hovered between 19 per cent and 22 per cent, with top performers including ARM Money Market Fund, Cowrywise Investment Portfolio, Coral Money Market Fund, and Vetiva Money Market Fund.
