Mutual Funds Boom: Assets Jump 93% as Investors Seek Smarter Returns
Nigeria’s mutual funds industry is experiencing a major surge, with total assets growing by 92.6% in one year, reflecting rising investor confidence and increased participation in professionally managed investment products.
Assets Nearly Double in One Year
Data from the Securities and Exchange Commission (SEC) shows that the Net Asset Value (NAV) of mutual funds climbed to ₦7.416 trillion as of November 28, 2025, up sharply from ₦3.850 trillion in November 2024.
This near-doubling of assets signals a growing shift by Nigerians toward structured, diversified investments amid changing economic conditions.
Inflation Slowdown Boosts Investor Confidence
One key driver of this growth is the faster-than-expected decline in inflation.
• Headline inflation dropped to 14.45% in November 2025 from 16.05% in October.
• The easing inflation has strengthened expectations that interest rates may be cut in early 2026, making mutual funds more attractive relative to traditional savings.
Money Market Funds Dominate the Market
Money Market Funds (MMFs) remain the largest segment of the industry:
• ₦4.552 trillion, representing 61% of total mutual fund assets
Top-performing money market funds include:
• RT Briscoe Savings & Investment Fund: 24.34% return
• Page Money Market Fund: 22.54% return
• STL Money Market Fund: 20.32% return
These strong returns have made MMFs especially appealing to investors seeking capital preservation and steady income.
Fixed Income and REITs Gain Ground
• Fixed Income Funds followed closely with ₦1.901 trillion, accounting for about 41% of total NAV, as investors sought stability and predictable returns.
• Real Estate Investment Trusts (REITs) recorded ₦408 billion, representing 6.4% of the market, offering inflation-hedging and long-term growth potential.
Why Mutual Funds Are Attracting More Nigerians
Mutual funds—also known as Collective Investment Schemes—allow investors to pool funds and invest across:
• Money market instruments
• Bonds
• Equities
• Real estate
This diversification helps reduce risk, as different asset classes tend to perform differently across economic cycles.
Expert Advice: Think Long Term
Commenting on the trend, David Adonri, Analyst and Executive Vice Chairman at High Cap Securities Limited, advised investors to stay focused on long-term goals.
According to him:
• Short-term market fluctuations are normal
• Staying invested allows wealth to compound over time
• Diversifying across fund types helps manage risk
• Assets like real estate and equities can offer protection against inflation
What This Means for Investors
The rapid growth of Nigeria’s mutual funds industry shows increasing trust in professional fund management, especially during periods of economic adjustment. As inflation moderates and interest-rate expectations shift, mutual funds are emerging as a reliable vehicle for wealth growth and capital protection.
Nigeria’s mutual funds industry is experiencing a major surge, with total assets growing by 92.6% in one year, reflecting rising investor confidence and increased participation in professionally managed investment products.
Assets Nearly Double in One Year
Data from the Securities and Exchange Commission (SEC) shows that the Net Asset Value (NAV) of mutual funds climbed to ₦7.416 trillion as of November 28, 2025, up sharply from ₦3.850 trillion in November 2024.
This near-doubling of assets signals a growing shift by Nigerians toward structured, diversified investments amid changing economic conditions.
Inflation Slowdown Boosts Investor Confidence
One key driver of this growth is the faster-than-expected decline in inflation.
• Headline inflation dropped to 14.45% in November 2025 from 16.05% in October.
• The easing inflation has strengthened expectations that interest rates may be cut in early 2026, making mutual funds more attractive relative to traditional savings.
Money Market Funds Dominate the Market
Money Market Funds (MMFs) remain the largest segment of the industry:
• ₦4.552 trillion, representing 61% of total mutual fund assets
Top-performing money market funds include:
• RT Briscoe Savings & Investment Fund: 24.34% return
• Page Money Market Fund: 22.54% return
• STL Money Market Fund: 20.32% return
These strong returns have made MMFs especially appealing to investors seeking capital preservation and steady income.
Fixed Income and REITs Gain Ground
• Fixed Income Funds followed closely with ₦1.901 trillion, accounting for about 41% of total NAV, as investors sought stability and predictable returns.
• Real Estate Investment Trusts (REITs) recorded ₦408 billion, representing 6.4% of the market, offering inflation-hedging and long-term growth potential.
Why Mutual Funds Are Attracting More Nigerians
Mutual funds—also known as Collective Investment Schemes—allow investors to pool funds and invest across:
• Money market instruments
• Bonds
• Equities
• Real estate
This diversification helps reduce risk, as different asset classes tend to perform differently across economic cycles.
Expert Advice: Think Long Term
Commenting on the trend, David Adonri, Analyst and Executive Vice Chairman at High Cap Securities Limited, advised investors to stay focused on long-term goals.
According to him:
• Short-term market fluctuations are normal
• Staying invested allows wealth to compound over time
• Diversifying across fund types helps manage risk
• Assets like real estate and equities can offer protection against inflation
What This Means for Investors
The rapid growth of Nigeria’s mutual funds industry shows increasing trust in professional fund management, especially during periods of economic adjustment. As inflation moderates and interest-rate expectations shift, mutual funds are emerging as a reliable vehicle for wealth growth and capital protection.