With the Central Bank of Nigeria’s (CBN) Monetary Policy Rate (MPR) increases, there has been a significant increase in Mutual Fund investments kicking total Net Asset Value, NAV, Year-on-Year, YoY, to N3.826 trillion in November 2024, about 89.12% growth over N2.023 trillion in the corresponding period 2023.
Mutual Fund is a professionally managed investment window that pools money from many investors and invests same in stocks, bonds, and short-term debt on behalf of the subscribing investors.
Analysts noted that the major driving force is the Central Bank of Nigeria’s (CBN) monetary policy rate increases, which have created high yields in money market instruments.
Latest data released by the Securities and Exchange Commission, SEC, showed that Fixed Income Funds was the most attractive among other Funds in the review period. It recorded N1.807 trillion, accounting for 47.21% of the total NAV of the Mutual Funds.
The Money Market Funds trailed with N1.568 trillion and accounted for 40.9% of the total NAV, while Bond/Fixed Income Funds occupied the third position posting N211.308 billion, representing 5.52% of the NAV.
