Smart Money Moves: Mutual Funds Balloon to ₦5.6 Trillion as Nigerians Hunt for Safe Havens
In a powerful display of investor confidence and strategic caution, Nigerians have poured money into mutual funds, pushing their total Net Asset Value (NAV) to an all-time high of ₦5.614 trillion as of May 2025. This represents a remarkable 93.5% growth from ₦2.902 trillion in the same period of 2024.
What’s Driving the Surge?
Financial analysts attribute this massive leap to:
• Sustained increases in the Monetary Policy Rate (MPR) by the Central Bank, making fixed-income returns more attractive.
• Naira devaluation, which has led investors to seek safer, more stable investment vehicles.
• Rising inflation, prompting a search for assets that can preserve capital while still yielding returns.
Breakdown by Fund Type (SEC Data)
According to recent data from the Securities and Exchange Commission (SEC):
• Money Market Funds lead the charge, accounting for ₦2.99 trillion, or 52.83% of the total NAV. These funds typically invest in short-term instruments like treasury bills and bank placements — perfect for conservative investors seeking capital preservation and liquidity.
• Fixed Income Funds follow with ₦1.938 trillion, representing 40.31% of the market. These funds focus on government and corporate bonds, offering stable returns with lower volatility.
• Real Estate Investment Funds (REITs) come in third, at ₦355.725 billion, or 6.28%. These provide investors with access to income-generating real estate without direct ownership hassles.
️ What the Experts Are Saying
David Adonri, Executive Vice Chairman at High Cap Securities, described the trend as a “strategic shift by Nigerian investors seeking to hedge against rising inflation and exchange rate volatility.” He emphasized that more people are opting for high-yield, low-risk assets like REITs and bonds to protect their portfolios.
Ambrose Omordion, COO at InvestData Consulting, echoed this, noting that the spike in mutual fund inflows is a clear sign of investor diversification. According to him, “Money Market Funds offer the lowest risk, and are perfect for short-term savings and liquidity needs.”
He also highlighted the benefits of mutual funds, including:
• Professional management
• Risk diversification
• Flexible investment options tailored to different financial goals and risk appetites
Summary
This surge in mutual fund investments signals that Nigerian investors are becoming more financially savvy — embracing low-risk, inflation-beating strategies in a volatile economy. Whether it’s treasury-based income, real estate exposure, or fixed returns, mutual funds are becoming the go-to safety net for smart money across the country.
In a powerful display of investor confidence and strategic caution, Nigerians have poured money into mutual funds, pushing their total Net Asset Value (NAV) to an all-time high of ₦5.614 trillion as of May 2025. This represents a remarkable 93.5% growth from ₦2.902 trillion in the same period of 2024.
What’s Driving the Surge?
Financial analysts attribute this massive leap to:
• Sustained increases in the Monetary Policy Rate (MPR) by the Central Bank, making fixed-income returns more attractive.
• Naira devaluation, which has led investors to seek safer, more stable investment vehicles.
• Rising inflation, prompting a search for assets that can preserve capital while still yielding returns.
Breakdown by Fund Type (SEC Data)
According to recent data from the Securities and Exchange Commission (SEC):
• Money Market Funds lead the charge, accounting for ₦2.99 trillion, or 52.83% of the total NAV. These funds typically invest in short-term instruments like treasury bills and bank placements — perfect for conservative investors seeking capital preservation and liquidity.
• Fixed Income Funds follow with ₦1.938 trillion, representing 40.31% of the market. These funds focus on government and corporate bonds, offering stable returns with lower volatility.
• Real Estate Investment Funds (REITs) come in third, at ₦355.725 billion, or 6.28%. These provide investors with access to income-generating real estate without direct ownership hassles.
️ What the Experts Are Saying
David Adonri, Executive Vice Chairman at High Cap Securities, described the trend as a “strategic shift by Nigerian investors seeking to hedge against rising inflation and exchange rate volatility.” He emphasized that more people are opting for high-yield, low-risk assets like REITs and bonds to protect their portfolios.
Ambrose Omordion, COO at InvestData Consulting, echoed this, noting that the spike in mutual fund inflows is a clear sign of investor diversification. According to him, “Money Market Funds offer the lowest risk, and are perfect for short-term savings and liquidity needs.”
He also highlighted the benefits of mutual funds, including:
• Professional management
• Risk diversification
• Flexible investment options tailored to different financial goals and risk appetites
Summary
This surge in mutual fund investments signals that Nigerian investors are becoming more financially savvy — embracing low-risk, inflation-beating strategies in a volatile economy. Whether it’s treasury-based income, real estate exposure, or fixed returns, mutual funds are becoming the go-to safety net for smart money across the country.