In the first nine months of 2024, Nigeria’s mutual funds industry saw a significant increase of 81.5% compared to the same period in 2023. This growth was mainly due to investors’ strong interest in foreign currencies, especially the US dollar. Data from the Securities and Exchange Commission (SEC) shows that the total value of assets managed by these funds grew to N3.5 trillion, up from N1.938 trillion in the first nine months of 2023.
The growth is attributed to several factors, including high interest rates on fixed income instruments, better performance in the stock market, more people understanding the advantages of mutual funds, and investors looking for better returns by investing in dollar-based assets. Dollar Funds led other Funds, recording N1.677 trillion and accounting for 47.7% of the total Fund’s value.
Money Market Funds came next, with N1.391 trillion, making up 28.97% of the total value. Bond/Fixed Income Funds were in third place, with N215.016 billion, which is 6.1% of the total value of Mutual Funds.
Industry experts have weighed in on the sector’s growth. Michael Oyebola, the CEO of MoneyCounsellors, said that the Nigerian mutual fund scene has changed a lot, becoming a lively and easy-to-use way to invest. “Mutual funds give people a chance to be part of the financial markets without needing a lot of knowledge or experience,” he explained.
