Nigeria: Mutual Fund industry assets hit N5.94trn in H1 2025
Agency Report
Nigeria’s mutual fund industry recorded a remarkable growth in the first half of 2025, with total assets under management (AUM) surging to N5.94 trillion.
This represents a surge of 104.7 per cent from N2.9 trillion in the same period of 2024.
The industry’s growth is underpinned by rising retail and institutional investor participation, heightened appetite for high-yield fixed-income and equity products, and sustained momentum in money market instruments, all within the context of Nigeria’s elevated interest rate environment.
Available data showed that the AUM expansion was led by money market funds, which accounted for approximately N2.99 trillion, more than 50 per cent of total industry assets.
These funds remained the preferred choice for investors prioritising liquidity, capital preservation, and attractive short-term returns, especially as annualised yields hovered between 19 per cent and 22 per cent.
Fixed-income funds followed with N1.94 trillion, reflecting strong investor preference for stable and predictable income, particularly from government securities and investment-grade corporate bonds.
Real Estate Investment Trusts (REITs) also recorded increased investor interest, managing N356 billion in assets, as investors sought inflation-hedging and asset-backed diversification opportunities.
Equity funds outperformed expectations during the review period, buoyed by the NGX All-Share Index’s bullish trajectory and renewed capital market confidence.
Top-performing equity funds included: Guaranty Trust Equity Income Fund with gain of 43.01 per cent year to date (YTD), followed by Paramount Equity Fund with 31.84 per cent ytd, Halo Equity Fund: gained 29.63 per cent Ytd, Afrinvest and Anchoria Equity Funds recorded 22.59 per cent year to date.
Balanced funds, which combine equity exposure with fixed-income instruments, also posted strong returns, offering an attractive option for investors with moderate risk appetites.
Although it is less volatile than equities, fixed-income funds maintained modest but consistent returns aligned with their risk profiles. Notable performers included:
Coral Income Fund with 5.73 per cent gain year to date, ARM Fixed Income Fund: added 3.76 per cent YTD.
These funds continue to appeal to investors seeking capital stability and moderate-income generation amid market fluctuations.
Financial analysts said that the sector’s rapid evolution also fueled by ongoing product innovation, including Exchange-Traded Funds (ETFs) and digital investment platforms.
As of June, 2025 mutual and ETF funds were active in the market, reflecting increasing portfolio diversification across asset classes and investor risk profiles.
“The Nigerian mutual fund industry has not only achieved scale but also demonstrated resilience and performance strength in the face of global and domestic headwinds,” said a senior asset management executive.
With nearly N6 trillion in managed assets, analysts expect the industry to maintain its upward trajectory in the second half of 2025, driven by: Continued monetary tightening, Stronger digital access to investment products, improved regulatory frameworks from the Securities and Exchange Commission (SEC), Rising financial literacy and retail investor participation.
