The total Net Asset Value (NAV) of mutual funds in Nigeria has risen sharply to ₦5.614 trillion by the end of May 2025, reflecting a 93.5% increase from ₦2.902 trillion recorded during the same period in 2024.
Data from the Securities and Exchange Commission (SEC) indicate that investor demand for lower-risk investment options, particularly amid economic uncertainty, has driven this significant growth. Analysts point to factors such as the elevated monetary policy rate and continued naira devaluation as key contributors to the upward trajectory.
Money Market Funds dominated the mutual fund landscape, accounting for ₦2.990 trillion, which represents 52.83% of the total NAV. Fixed Income Funds followed closely, contributing ₦1.938 trillion or 40.31%. Real Estate Investment Trusts (REITs) ranked third, with ₦355.725 billion, making up 6.28% of the total.
Reacting to the figures, the Executive Vice Chairman of High Cap Securities Limited remarked that the surge signals a strategic move by Nigerian investors to hedge against inflation and foreign exchange instability. He noted that the shift toward fixed-income products and real estate funds highlights growing caution among investors.
In a similar vein, Ambrose Omordion, Chief Operating Officer of InvestData Consulting, emphasized that the current trend suggests broader portfolio diversification efforts. He noted that Money Market Funds typically composed of treasury bills, commercial papers, and bank placements offer a low-risk solution for managing short-term capital needs.
Omordion added that mutual funds provide several benefits, including professional management, diversified asset exposure, and flexible options suited to varying risk appetites. These features, he said, continue to appeal to investors seeking both stability and reliable returns in today’s volatile market environment.
