By Peter Egwuatu

Nigerians’ appetite for secured investment has pushed the Net Asset Value (NAV) of Mutual Funds to N5.614 trillion in the five months ended May 2025, up 93.5 % from N2.902 trillion in the corresponding period 2024.

Analysts attributed the surge in the Funds’ NAV partly to the impact of sustained mark up in monetary policy rate, naira devaluation among other factors.

Data released by the Securities and Exchange Commission, SEC, showed that the Money Market Funds was predominant, contributing N2.990 trillion and accounting for 52.83 % of the total NAV.

It was followed by Fixed Income Funds, recording N1.938 trillion in the period under review and accounting for 40.31% of the total NAV. The Real Estate Investment Funds, REITs occupied the third position recording N355.725 billion and accounted for 6.28 % of the total NAV.

Commenting on this development, analyst and Executive Vice Chairman at High Cap Securities Limited, said: “The growth trend highlights a strategic shift by Nigerian investors seeking to hedge against rising inflation and exchange rate volatility.

“The inflow into mutual funds is particularly noteworthy as investors look for high-yielding low-risk opportunities, gravitating towards fixed-income and REITs instruments.

“The growing preference for Mutual Funds amid market volatility underscores a broader strategy among Nigerian investors to seek stability and higher returns in a challenging economic environment”.

Commenting as well, Chief Operating Officer at InvestData Consulting, Ambrose Omordion, said: “The growing preference for Mutual Funds amid market volatility indicates diversification of portfolios to hedge against inflation. Money Market Funds invest exclusively in short-term debt securities like treasury bills, bank placements and commercial papers. These funds provide investors with a low-risk option for short-term cash management and capital preservation.

“Mutual Fund investments offer several advantages for individuals. Firstly, they allow investors to diversify their risk across a variety of assets. Additionally, Mutual Funds are professionally managed, providing investors with expert supervision and advice. Furthermore, they offer flexibility and convenience, catering to different risk tolerances and investment objectives”.