TO WANT TO INVEST IN BEST PERFORMING MUTUAL FUNDS IN NIGERIA 2022, IS ONE THING, AND TO INVEST IN GOOD ONES IS ANOTHER. THIS ARTICLE TALKS ABOUT SOME OF THE BEST THINGS IN NIGERIA, BUT NOT IN ANY SPECIFIC ORDER.
*Wanting to invest in mutual funds is different from investing in good ones. This article talks about some of the best things in Nigeria, but it doesn’t rank them.
It’s one thing to pool money with your friends to buy a better house than you could on your own, but it’s another thing to get one of the best houses on the market.
In our last post, we talked about some of the benefits you can get from investing through mutual funds. But if you sign up with the wrong mutual fund company, all of these benefits, like having a diversified portfolio or being able to invest in vehicles you would not have been able to afford, won’t matter.
Here is a list of some of the best mutual funds in Nigeria based on how well they have done over the past few years, in no particular order:
Stanbic IBTC Aggressive Fund
Stanbic IBTC Aggressive Fund is known for its competitive returns, its diversification spread, its aggressive allocation, its liquidity provision, and for keeping a steady threshold of low to medium volatility.
The fund is one of the Stanbic IBTC Umbrella funds, which also includes the Stanbic IBTC Absolute and Stanbic IBTC Conservative funds. They say that they usually put at least 60% of their assets in the stock market and 40% in fixed-income securities.
Stanbic IBTC Aggressive Fund is great, but it’s best for investors who are willing to take on a lot of risk. If you don’t like taking risks, you should join their Conservative Portfolio. If you don’t want to take any risks at all, you should join their Absolute Return Portfolio, which invests 100% of your money in fixed income securities and would never lose a dime.
Stanbic IBTC Asset Management is in charge of the funds, and you can start investing with just N5,000.
FBN Nigeria Smart Beta Equity Fund
The FBN Nigeria Smart Beta Equity Fund is best for investors who want to make money over time. Their focus is on investors who are willing to take on a lot of risk, have long-term goals, and have at least N50,000 to invest.
It is called an equity-based fund because it usually invests in stocks that are listed on the Nigerian Stock Exchange. These stocks can be from any industry. The fund also offers competitive returns by using evaluation systems that are based on a lot of research and have stood the test of time.
Concerning their spread, they protect their long-term capital by putting at least 75% of it in a diversified portfolio and 25% in short-term money market instruments to keep things moving.
Meristem Equity Market Fund
The Meristem Equity Market Fund is part of Meristem Wealth Management Limited (MWML), and it also invests in equity securities on the NSE. It is a mutual fund with no limits on how much you can put in at first. The least you can put in at first is N10,000.
Customers have praised the fund not only for its high yields and high net asset value, but also for its great customer service and relationship management. They also give you the option of applying as a business or as a group, depending on what kind of group you are.
EDC Fixed Income Fund
The EDC Fixed Income Fund invests in fixed-income instruments, and it is ranked as one of the top three mutual funds in Nigeria by a number of sites. It invests in a wide range of debt securities, bank placements, bonds, commercial papers, and other fixed income investment vehicles.
As you might have guessed, the fund is for people who don’t want to take risks or are only willing to take small risks. Its goal is to make liquidity and liability management easy for investors while avoiding all the risks that could come from investing in stocks.
Ecobank’s Asset Management is handled by EDC Fund Management, which has two mutual funds: the EDC Nigeria Money Market Fund and the EDC Nigeria Fixed Income Fund. For the Money Market Fund, you need at least 5,000, but for the Fixed Income Fund, you need at least 50,000.
If you’d rather invest and keep an eye on your portfolio yourself, you can use the Yochaa App as your trusted eyes and ears in the stock market.