10 Excellent mutual funds in Nigeria to consider in 2020

10 Excellent mutual funds in Nigeria to consider in 2020

Investing in mutual funds is a good way to earn passive income. There are about 107 mutual funds in Nigeria based SEC data that you can invest in. These mutual funds in Nigeria include different fund types like; Bond funds, Equity-Based Funds, Ethical Funds, Exchange Traded Funds, Fixed Income Funds, Infrastructure Funds, Mixed Funds, Money Market Funds and Real Estate Funds. In this post, we’ve picked some of the best mutual funds in Nigeria for you.

What are Mutual Funds?

A Mutual Fund is an investment entity that pools funds from a number of investors and invests those funds in securities such as stocks, bonds, money market instruments and similar assets. Mutual Funds are operated by professional fund managers, who invest the fund’s capital and attempt to produce capital gains and income for the investors.   

Top Mutual Funds in Nigeria

mutual funds in Nigeria
  • Stanbic IBTC Aggressive Fund
  • Stanbic IBTC Nigerian Equity Fund
  • Vetiva’s New Gold ETF 
  • FBNQuest Nigeria Smart Beta Equity Fund
  • Vantage Balanced Fund
  • Vantage Dollar Fund
  • Legacy USD Bond Fund
  • VI ETF
  • Coronation Fixed Income Fund
  • United Capital Euro Bond Fund

Stanbic IBTC Aggressive Fund

Stanbic IBTC Aggressive Fund (SIAF) is an open-ended mutual fund created to provide liquidity while ensuring sustainable attractive returns to investors in the long term. SIAF is biased towards equities and invests a minimum of 60% of its Net Asset value in equities and a maximum of 40% in fixed income securities.

The SIAF risk profile is clearly stated as aggressive, so it suits investors who have a high-risk appetite. Funds in SIAF are managed by Stanbic IBTC Asset Management. The minimum investment amount for this mutual fund is N20 million.

Stanbic IBTC Nigerian Equity Fund

As we can see the Stanbic IBTC Aggressive Fund is geared towards high net worth individuals. However, Stanbic IBTC offers other mutual funds that almost anybody can invest in. One of such funds is the Stanbic IBTC Nigerian Equity Fund.

Stanbic IBTC Nigerian Equity Fund is an open-ended mutual fund created to provide liquidity while ensuring sustainable attractive returns to investors in the long term. SINEF is biased towards equities and invests a minimum of 70% of its Net Asset value in equities and a maximum of 30% in fixed income securities.

SINEF has a 91 days minimum holding period and The minimum investment amount is N5,000.00. 

Vetiva NewGold ETFVetiva’s

The NewGold Exchange Traded Fund (ETF) is a mutual Fund that tracks the Rand (SA) price of gold and offers investors the opportunity to invest in a listed security  that is fully backed by gold bullion. Each NewGold security is equivalent to approximately 1/100 ounces of real gold . The gold is held in a vault by its custodian, Brinks limited.

Piggyvest-refer

 Gold prices have been up since Covid-19 pandemic struck the world. In times of uncertainty, Gold prices are usually up. Vetiva’s NewGold fund is one of the best mutual funds in Nigeria to invest in based on the high returns it has been giving its customers.

NewGold ETF is traded on the NSE(Nigerian stock exchange).

FBN Nigeria Smart Beta Equity

FundThe FBN Nigeria Smart Beta Equity Fund is an equity fund that invests money in a portfolio of Nigerian companies. These companies go through a rigorous, research-based and tested evaluation system before investments are made into them.

The FBN Nigeria Smart Beta Equity fund preserves its long term capital by investing at least 75% of its assets excluding cash and cash equivalents in a diversified portfolio of high-quality companies that are listed on the Nigerian Stock Exchange.  It also invests up to 25% of its assets  in short-term money market instruments and deposits with financial institutions for it to manage liquidity.

FBN Nigeria Smart Beta Equity Fund is an impressive mutual fund that offers competitive returns. If you want to invest in stocks and are not quite sure how to go about it. This mutual fund is a good fit for you.

This fund is suited for an investor with a high-risk appetite with long term goals. The Minimum starting investment for this mutual fund in Nigeria is N50,000.

Vantage Balanced Fund

Investment One’s Vantage Balance Fund is a mixed mutual fund focused on  Equities, Fixed Income, Money Market and Real Estate assets. 

Vantage Balanced Fund is designed to maximise long term capital growth while maintaining regular income distribution. VBF is one of the mutual funds in Nigeria that suits medium-risk investors as it offers a good mix of investment assetsThe minimum subscription for VBF is ₦10,000, you can also make additional investments in multiples of ₦1,000.

Legacy USD Bond Fund

FCMB Asset Management’s Legacy USD Bond Fund is a US Dollar-denominated high yield mutual fund registered with the Securities & Exchange Commission. The Legacy USD Bond Fund (LUSBD) can be seen as a US Dollar-denominated Collective Investment Scheme.

LUSBD invests in US Dollar-denominated fixed-income securities. These securities are issued by the Nigerian Government, Supranational bodies and Corporate entities. One of these securities is the Eurobond.

LUSBD ‘s objective is to generate stable income over the long-term. If you invest in LUSBD your Capital will not be protected, as the value of your investment may fall as well as rise.

Legacy USD Bond Fund Minimum initial subscription is  5,000 units with a minimum investment period of 6 months USD provides an opportunity for stable income and an excellent means of hedging against potential Naira depreciation.

It provides a convenient way of saving towards medium-to-long-term goals. This Fund has zero currency risk, as inflows and investment of funds are solely in US Dollar. All the dividend income earned on investments are paid in US Dollar.

Vantage Dollar Fund

This is another mutual fund from Investment one. This time it is a dollar fund. Vantage Dollar Fund (VDF) is an open-ended Unit Trust Scheme in Nigeria that is registered with the SEC. 

VDF invests primarily in Corporate and Sovereign Eurobonds. This mutual fund objective is to provide Interest Income and Capital Appreciation to its investors. VDF seeks to provide investors who are interested in Dollar-denominated securities, access to such securities.

Vantage Dollar Fund has a minimum of $500. For more details go here.

VI ETF (Vetiva Industrial ETF)

The Vetiva Industrial ETF also called VETIND ETF is an open-ended ETF that is designed to track the performance of the companies of the NSE Industrial Index. And to replicate the price and yield performance of the Industrial Index. The NSE Industrial Index comprises the top 10 companies in the Industrial sector listed on the Nigerian Stock Exchange. 

The VI ETF is managed by Vetiva Fund Managers Limited. VI ETF holds a portfolio of securities on behalf of its investors that substantially represents all of the component securities of the NSE Industrial Index.

VI ETF is one of the good mutual funds in Nigeria to invest in. Especially for those interested in Nigerian industrial companies.

Coronation Fixed Income Fund

The Coronation Fixed Income Fund (CFIF) is a mutual fund in Nigeria that provides you with an opportunity to save for your long term financial needs or any special goals you may also have. The risk associated with CFIF is low to medium risk. This fund pays out semi-annually.

The Coronation Fixed Income Fund is easily accessible for contributions and withdrawals. This Coronation Fixed Income Fund invests in a broad portfolio fixed income securities such as government and corporate bonds, treasury bills and other money market securities.

CFIF Asset Allocation Range for the securities are 10% – 80% in Government Bonds, 10% – 75% in Corporate Bonds, 0% – 25% in State, Supranational and Sub-national securities, 0% – 25% in Commercial Papers, Banker’s Acceptance and Other Fixed Income Funds,0% – 25% in Treasury Bills and 0% – 5% in Bank Placements.

United Capital Euro Bond Fund

The United Capital Nigerian Eurobond Fund is an open-ended mutual fund that invests in Dollar-denominated Eurobonds floated by the Federal Government of Nigeria and top-tier corporates. 

This Fund provides competitive short to medium term capital appreciation for investors on their USD holdings.

The minimum investment in United Capital Euro Bond Fund is $1,000 (10 units) and multiples of 5 units thereafter. This Mutual fund provides much better returns than the average domiciliary deposit account.

The risks associated with investing in this fund are; Credit Risks, macroeconomic instability and interest rate risks. Investing in this mutual fund can provide a good hedge against depreciation of the Naira and long-term capital preservation and growth.

Related Posts
Leave a Reply

Your email address will not be published.Required fields are marked *

Become smarter with your money.Get exclusive advice and tips on how to keep and grow your money in Nigeria.

Subscribe to Koboline's newsletter.