Saving money on apps like Piggyvest, Cowrywise, Opay, or Fairmoney can yield reasonable interest. It’s safe but barely rewarding. With the increasing inflation rate and naira volatility, mutual funds remain one of the most accessible investment vehicles for Nigerian savers looking to grow their wealth and diversify their portfolios.
Imagine a mutual fund as a community piggy bank for investing. A professional manager picks stocks, bonds or other assets, spreading your cash across many holdings so you’re not putting all your eggs in one basket.
You buy shares of the fund, and your investment grows (or shrinks) with its overall performance. It’s an easy, hands‑off way to access diversified investing and expert know‑how—even if you start with just a little.
In 2024, equity‑based mutual funds delivered an average return of 49.6%, far outpacing money market and fixed‑income alternatives. As the Money Market Rate (MPR) hovered around 27.5% and inflation exceeded 35% by December 2024, Nigerian investors have increasingly turned to mutual funds for better real yields.
Investing in mutual funds offers Nigerians a straightforward way to grow wealth without buying individual stocks or bonds. With entry points as low as ₦5,000, professional management, and easy access via investment-focused mobile apps, mutual funds suit both first‑time and seasoned investors.
Related Article: 5 Trusted Apps Let Nigerians Invest in U.S. & Local Stocks Easily.
1. Stanbic IBTC Aggressive Fund
With an equity weighting of up to 90%, the Stanbic IBTC Aggressive Fund returned 49.9% in 2023. This fund is designed for long‑term growth and rewards investors when the Nigerian stock market rallies, but its high volatility means it can incur losses during market downturns. It is best suited for those with a five‑ to ten‑year investment experience and a strong risk appetite.
Visit Stanbic IBTC Asset Management.
2. ARM Ethical Fund
The ARM Ethical Fund combines stocks that follow Sharia law with fixed-income investments, earning 30.89% in Q1 2024. Its ethical focus appeals to investors who avoid interest-bearing instruments. The diversified portfolio helps moderate overall risk, though a significant equity component means investors should expect occasional price swings.
You can buy this fund on Cowrywise. If you don’t have the Cowrywise app, download it via the Google Play Store or App Store.
3. ARM Fixed Income Fund
Focusing on high‑quality government bonds and corporate debt, the ARM Fixed Income Fund offers predictable annual yields in the 12–15% range. This fund is suited for conservative investors who want a regular passive income with lower volatility. The only downside is that, over a long period, bond funds might not grow as much as stock funds or mixed funds..
Where to Buy: Piggyvest.
4. Chapel Hill Denham Nigeria Dollar Income Fund
This mutual fund invests in fixed-income assets that are valued in US dollars. It helps protect your money when the Naira loses value and against changes in global interest rates. The returns you get depend on how well the dollar-based investments perform, and you need foreign currency to invest in them.
It’s a good option for those who want to safeguard their money’s value and spread their investments across different currencies.
Where to Buy: Invest Naija.
5. Halo Equity Fund
The Halo Equity Fund, managed by Halo Asset Management, surged 110.79% YTD in January 2025 after a 98.91% YTD gain in 2024. Investing selectively in high‑performing Nigerian stocks and maintaining a narrow 0.82% bid‑ask spread, this small ₦16.6 billion fund offers outsized returns with high volatility.
Visit Halo Nigeria Capital Management Limited to get started.
