Mutual Funds Double to ₦5.94 Trillion in H1 2025 Amid High Yields and Strong Investor Demand
Detailed Breakdown of the News
Nigeria’s mutual fund industry achieved a remarkable milestone in the first half of 2025, with total Assets Under Management (AUM) rising to an impressive ₦5.94 trillion. This marks a 104.7% increase compared to the ₦2.9 trillion recorded in H1 2024, highlighting a surge in investor confidence and a strong pivot toward high-yield investment options.
The data—spanning 205 mutual funds and Exchange-Traded Funds (ETFs)—underscores a steady momentum that began earlier in the year, when industry assets already reached ₦5.61 trillion by May 2025. Analysts attribute this sharp growth to several factors:
• Increased participation from both retail and institutional investors.
• Sustained interest due to Nigeria’s elevated interest rate environment.
• Product innovation and improved fund performance across asset classes.
Market Dynamics & Sector Breakdown
This performance showcases the resilience, adaptability, and attractiveness of Nigeria’s mutual fund market. With close to ₦6 trillion in assets, the industry is demonstrating both scale and solid performance fundamentals, pointing to the likelihood of continued growth in H2 2025.
When examining the composition of AUM, low-risk asset classes continued to dominate investor preferences:
• Money Market Funds took the lead, managing approximately ₦2.99 trillion, which accounts for over 50% of total industry assets. These funds remain a top choice for investors prioritising liquidity and capital preservation.
• Fixed-Income Funds followed with ₦1.94 trillion, reflecting the consistent appeal of stable and predictable income streams.
• Real Estate Investment Trusts (REITs) are gaining modest traction, with ₦356 billion under management, indicating growing interest in real asset exposure.
Fund Performance Highlights (YTD Returns)
Performance varied across fund categories, but equity and balanced funds stood out as top performers in H1 2025, driven by a bullish equities market:
• Guaranty Trust Equity Income Fund delivered over 43% YTD returns.
• Paramount Equity Fund yielded 31.84% YTD.
• Halo Equity Fund achieved 29.63% YTD.
• Both Afrinvest Equity Fund and Anchoria Equity Fund returned 22.59% YTD.
This wave of strong equity fund performance signals investors’ growing appetite for higher-risk, higher-return instruments—a contrast to the traditionally conservative tilt of Nigerian portfolios.
Meanwhile, Fixed-Income Funds, while less aggressive, held up their end with consistent, stable returns:
• Coral Income Fund led with a 5.73% YTD return.
• ARM Fixed Income Fund followed closely at 3.76% YTD.
These outcomes align with the funds’ capital preservation mandates, catering to risk-averse investors.
Money Market Funds: The Safe Haven
Money Market Funds continued to shine as the go-to for short-term investors:
• Annualised returns ranged between 19% and 22% by early June 2025.
• Notable top performers included:
• ARM Money Market Fund
• Cowrywise Investment Portfolio
• Coral Money Market Fund
• Vetiva Money Market Fund
Their attractive returns, coupled with high liquidity and low volatility, made them an ideal shelter for cautious investors in a rising rate environment.
Conclusion:
Nigeria’s mutual fund space is experiencing a golden moment—doubling in value year-on-year, fueled by compelling returns, innovative fund structures, and greater investor education. As product diversity improves and confidence deepens, the industry appears well-poised for sustained momentum in the second half of 2025.
Detailed Breakdown of the News
Nigeria’s mutual fund industry achieved a remarkable milestone in the first half of 2025, with total Assets Under Management (AUM) rising to an impressive ₦5.94 trillion. This marks a 104.7% increase compared to the ₦2.9 trillion recorded in H1 2024, highlighting a surge in investor confidence and a strong pivot toward high-yield investment options.
The data—spanning 205 mutual funds and Exchange-Traded Funds (ETFs)—underscores a steady momentum that began earlier in the year, when industry assets already reached ₦5.61 trillion by May 2025. Analysts attribute this sharp growth to several factors:
• Increased participation from both retail and institutional investors.
• Sustained interest due to Nigeria’s elevated interest rate environment.
• Product innovation and improved fund performance across asset classes.
Market Dynamics & Sector Breakdown
This performance showcases the resilience, adaptability, and attractiveness of Nigeria’s mutual fund market. With close to ₦6 trillion in assets, the industry is demonstrating both scale and solid performance fundamentals, pointing to the likelihood of continued growth in H2 2025.
When examining the composition of AUM, low-risk asset classes continued to dominate investor preferences:
• Money Market Funds took the lead, managing approximately ₦2.99 trillion, which accounts for over 50% of total industry assets. These funds remain a top choice for investors prioritising liquidity and capital preservation.
• Fixed-Income Funds followed with ₦1.94 trillion, reflecting the consistent appeal of stable and predictable income streams.
• Real Estate Investment Trusts (REITs) are gaining modest traction, with ₦356 billion under management, indicating growing interest in real asset exposure.
Fund Performance Highlights (YTD Returns)
Performance varied across fund categories, but equity and balanced funds stood out as top performers in H1 2025, driven by a bullish equities market:
• Guaranty Trust Equity Income Fund delivered over 43% YTD returns.
• Paramount Equity Fund yielded 31.84% YTD.
• Halo Equity Fund achieved 29.63% YTD.
• Both Afrinvest Equity Fund and Anchoria Equity Fund returned 22.59% YTD.
This wave of strong equity fund performance signals investors’ growing appetite for higher-risk, higher-return instruments—a contrast to the traditionally conservative tilt of Nigerian portfolios.
Meanwhile, Fixed-Income Funds, while less aggressive, held up their end with consistent, stable returns:
• Coral Income Fund led with a 5.73% YTD return.
• ARM Fixed Income Fund followed closely at 3.76% YTD.
These outcomes align with the funds’ capital preservation mandates, catering to risk-averse investors.
Money Market Funds: The Safe Haven
Money Market Funds continued to shine as the go-to for short-term investors:
• Annualised returns ranged between 19% and 22% by early June 2025.
• Notable top performers included:
• ARM Money Market Fund
• Cowrywise Investment Portfolio
• Coral Money Market Fund
• Vetiva Money Market Fund
Their attractive returns, coupled with high liquidity and low volatility, made them an ideal shelter for cautious investors in a rising rate environment.
Conclusion:
Nigeria’s mutual fund space is experiencing a golden moment—doubling in value year-on-year, fueled by compelling returns, innovative fund structures, and greater investor education. As product diversity improves and confidence deepens, the industry appears well-poised for sustained momentum in the second half of 2025.