As many Nigerians continue to embrace digital savings platforms like Piggyvest, Cowrywise, Opay, and Fairmoney, it’s become clear that while these apps offer secure savings options with modest interest rates, they may not deliver the kind of financial growth needed to outpace inflation or currency depreciation.
In an economy grappling with high inflation and a fluctuating naira, mutual funds are emerging as a powerful investment tool for Nigerians seeking to preserve value and grow wealth over time.
Think of a mutual fund as a shared investment pool managed by finance professionals. These managers allocate funds into a mix of assets—like stocks, bonds, and other securities—ensuring diversification and reduced individual risk. Investors buy units of the fund, and their returns are tied to the collective performance of the underlying assets. It’s a simplified, low-effort entry point into expert-managed investing—even for beginners with small capital.
In 2024, equity-focused mutual funds recorded an average return of 49.6%, far exceeding returns from fixed deposits and money market funds. With the Monetary Policy Rate (MPR) steady around 27.5% and inflation surging past 35% by the end of the year, more Nigerians have turned to mutual funds to secure better real returns on their investments.
With minimum buy-ins as low as ₦5,000, these funds offer a blend of affordability, professional oversight, and easy access via mobile investment apps—making them ideal for both new investors and experienced portfolio holders.
1. Stanbic IBTC Aggressive Fund
The Stanbic IBTC Aggressive Fund, which allocates up to 90% of its assets to equities, recorded an impressive 49.9% return in 2023. Tailored for long-term investors with a high risk appetite, this fund thrives when the Nigerian stock market performs well. However, its volatility means potential losses during downturns. It’s ideal for investors with a 5 to 10-year horizon who are comfortable with market swings.
👉 Access via: Stanbic IBTC Asset Management
2. ARM Ethical Fund
This fund blends Sharia-compliant equities with stable fixed-income instruments and posted a 30.89% return in Q1 2024. With a focus on ethical investing, it’s suitable for those avoiding interest-bearing assets. Its balanced composition tempers risk, although its equity exposure means investors should expect some volatility.
👉 Where to invest: Available on Cowrywise app.
3. ARM Fixed Income Fund
Catering to conservative investors, the ARM Fixed Income Fund targets quality government bonds and corporate debt. It delivers consistent annual yields of 12%–15% and offers lower volatility compared to equity-focused alternatives. While it lacks explosive growth potential, it’s an excellent option for stable, passive income.
👉 Buy via: Piggyvest.
4. Chapel Hill Denham Nigeria Dollar Income Fund
This fund is structured around U.S. dollar-denominated fixed-income assets, offering a hedge against naira devaluation and foreign exchange volatility. Investors benefit based on the performance of these dollar-backed securities. Ideal for those looking to protect their capital and diversify across currencies, it requires access to foreign exchange.
👉 Platform: Invest Naija
5. Halo Equity Fund
Managed by Halo Asset Management, this fund has delivered standout performance—110.79% YTD in January 2025 following a 98.91% gain in 2024. With a narrow bid-ask spread of just 0.82% and a ₦16.6 billion fund size, it focuses on high-performing equities, offering lucrative gains alongside significant risk.
👉 Visit: Halo Nigeria Capital Management
6. Alpha Morgan Balanced Fund
Striking a balance between equities and fixed-income assets, this fund aims for both capital growth and income generation. With a moderate risk profile and a minimum entry of ₦10,000, it’s ideal for investors seeking less volatility. It requires a 180-day holding period and has been recognised by Business Day as a top performer.
👉 Where to buy: Cowrywise
7. GTCO Equity Income Fund
The GTCO Equity Income Fund is structured around high-yield, blue-chip stocks on the Nigerian Exchange, combined with fixed-income investments to offer a blend of income and long-term capital growth. It currently delivers an average return of 13%, making it one of the most competitive equity-income funds available.
👉 Start via: GTCO Fund Managers
How to Get Started with Mutual Fund Investments in Nigeria
Entering the mutual fund market is easier than many Nigerians think. Begin by selecting a reputable investment platform—this could be a bank (such as Stanbic IBTC or Chapel Hill Denham) or a trusted fintech app like Cowrywise, PiggyVest, Bamboo, or Trove.
Set up an account using essential documents like your Bank Verification Number (BVN), National Identification Number (NIN), and a valid ID. After verification, fund your account through bank transfer or debit card. Browse available funds based on performance, risk level, and minimum entry amount. Once you identify a fund aligned with your goals and risk appetite, you can proceed to invest any desired amount above the minimum.
The key to successful mutual fund investing lies in aligning your choices with your financial objectives—whether you’re seeking steady returns, capital growth, or protection against inflation. Also consider whether you prefer naira-based funds or dollar-denominated alternatives, especially in light of Nigeria’s volatile FX market.
