Lower inflation, rate-cut expectations and strong money market returns fuel surge in collective investment schemes
Nigeria’s mutual fund industry is recording rapid expansion, with total assets under management rising by 92.6 per cent year-on-year, as investors increasingly channel funds into professionally managed investment products.
Data from the Securities and Exchange Commission (SEC) show that the Net Asset Value (NAV) of mutual funds climbed to ₦7.416 trillion as of November 28, 2025, nearly doubling from ₦3.850 trillion in November 2024.
The strong growth coincides with a sharper-than-expected slowdown in inflation, which has improved investor sentiment and strengthened expectations of an interest rate cut in early 2026.
Headline inflation eased to 14.45 per cent in November 2025, down from 16.05 per cent in October, boosting confidence in financial markets and making mutual funds a more attractive option for yield-seeking investors.
Money Market Funds dominated the sector, accounting for ₦4.552 trillion, or 61 per cent of total mutual fund assets, reflecting investors’ preference for relatively low-risk instruments in a changing macroeconomic environment.
Among the top performers, RT Briscoe Savings & Investment Fund posted a return of 24.34 per cent, followed by Page Money Market Fund with 22.54 per cent, and STL Money Market Fund, which delivered 20.32 per cent.
Fixed Income Funds ranked second, with assets valued at ₦1.901 trillion, representing 41 per cent of total NAV, while Real Estate Investment Trusts (REITs) accounted for ₦408 billion, or 6.4 per cent of the market.
Mutual funds also known as Collective Investment Schemes allow investors to pool resources and invest across asset classes such as money markets, bonds, equities and real estate. This diversification helps reduce risk, as different assets tend to perform differently under varying economic conditions.
Commenting on the growing interest in mutual funds, David Adonri, Analyst and Executive Vice Chairman of High Cap Securities Limited, urged investors to maintain a long-term perspective.
“Investors should think long term. Markets may fluctuate in the short run, but remaining invested allows wealth to grow and cushions the impact of temporary market movements,” Adonri said.
He also advised investors to diversify across fund types and include assets that offer protection against inflation.
“Spreading investments across different funds reduces risk. Assets such as real estate or equities with strong pricing power can also help preserve value during inflationary periods,” he added.
With rising participation from retail and institutional investors alike, Nigeria’s mutual fund industry is increasingly positioning itself as a viable vehicle for wealth creation and capital preservation, even amid shifting economic conditions.
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