What are Mutual Funds?
A Mutual Fund is an investment entity that pools funds from a number of investors and invests those funds in securities such as stocks, bonds, money market instruments and similar assets.
The profit derived from the diversified pool of investment is shared to investors in the funds annually or semi annually or as stipulated in the fund prospectus. They are operated by professional fund managers, who invest the fund’s capital and attempt to produce capital gains and income for the investors.
Mutual funds have been considered as a good alternative investment opportunity, particularly for retail investors because it gives them access to diversified and professionally managed portfolios at a low price.
The top 10 performing mutual funds in Nigeria are
Vetiva’s New Gold ETF
Vetiva’s NewGold fund is one of the best mutual funds in Nigeria to invest in based on the high returns it has been giving its customers.
The NewGold Exchange Traded Fund (ETF) is a mutual Fund that tracks the Rand (SA) price of gold and offers investors the opportunity to invest in a listed security that is fully backed by gold bullion. Each NewGold security is equivalent to approximately 1/100 ounces of real gold. The gold is held in a vault by its custodian, Brinks limited.
Vantage Dollar Fund
Vantage Dollar Fund is an open-ended Unit Trust Scheme by Investment One Funds. The Fund seeks to provide investors with a bias for Dollar-denominated securities and access to such securities, which ordinarily would be inaccessible to them by virtue of the minimum amount typically required to make such investments.
FBN Nigeria Smart Beta Equity
Fund The FBN Nigeria Smart Beta Equity Fund is an equity fund that invests money in a portfolio of Nigerian companies and offers competitive returns. If you want to invest in stocks and are not quite sure how to go about it. This mutual fund is a good fit for you.
Also, the fund is suited for an investor with a high-risk appetite with long term goals. The Minimum starting investment for this mutual fund in Nigeria is N50,000.
Stanbic IBTC Aggressive Fund
This is an open-ended mutual fund created to provide liquidity while ensuring sustainable attractive returns to investors in the long term.
SIAF is biased towards equities and invests a minimum of 60% of its Net Asset value in equities and a maximum of 40% in fixed income securities. The risk profile is clearly stated as aggressive, so it suits investors who have a high-risk appetite.
ARM Eurobond Fund (Bond Funds) – Asset & Resources Mgt.
The ARM Eurobond Fund is an open-ended, low-risk mutual fund that is invested in Dollar-denominated Eurobond floated by the Federal Government of Nigeria and top-tier Nigerian corporates.
Stanbic IBTC Nigerian Equity Fun
Stanbic IBTC Nigerian Equity Fund is an open-ended mutual fund created to provide liquidity while ensuring sustainable attractive returns to investors in the long term. SINEF is biased towards equities and invests a minimum of 70% of its Net Asset value in equities and a maximum of 30% in fixed income securities.
It has a 91 days minimum holding period and The minimum investment amount is N5,000.00.
Nigerian Entertainment Fund- Greenwich Asset Management (Mixed Funds)
This is a Balanced Fund that aims to promote an investment culture among participants, especially in the entertainment industry. The Fund provides investors with the opportunity to earn returns from investing in investment-grade instruments as well as indirectly investing in Nigeria’s entertainment industry.
Coronation Fixed Income Fund
The Coronation Fixed Income Fund (CFIF) provides you with an opportunity to save for your long term financial needs or any special goals you may also have. The risk associated with it is low to medium risk and the fund pays out semi-annually.
Also, it is easily accessible for contributions and withdrawals.
United Capital Euro Bond Fund
The United Capital Nigerian Eurobond Fund is an open-ended mutual fund that invests in Dollar-denominated Eurobonds floated by the Federal Government of Nigeria and top-tier corporates. It provides competitive short to medium term capital appreciation for investors on their USD holdings.
The minimum investment in United Capital Euro Bond Fund is $1,000 (10 units) and multiples of 5 units thereafter.
Vantage Balanced Fund
Investment One’s Vantage Balance Fund is a mixed mutual fund focused on Equities, Fixed Income, Money Market and Real Estate assets designed to maximise long term capital growth while maintaining regular income distribution.
VBF suits medium-risk investors as it offers a good mix of investment assets. The minimum subscription for VBF is ₦10,000, you can also make additional investments in multiples of ₦1,000.
