Mutual funds have become one of the fastest-growing investment vehicles in Nigeria’s capital market, especially for investors who want to grow wealth without the stress of managing individual stocks or tracking market volatility every day.
As of October 2025, Nigeria’s mutual fund industry has crossed the N7 trillion milestone in Assets Under Management (AUM), reflecting both investor confidence and the growing ease of digital investing.
With over 200 SEC-registered mutual funds spread across the money market, fixed income, equity, balanced, real estate, and ethical categories, the sector continues to deepen participation in the capital market.
Unlike in the past when investing felt like a luxury for a select few, the rise of fintech platforms and increased financial literacy have made it easier for ordinary Nigerians to start with as little as N1,000 and build real, long-term wealth.
The larger the AUM, the more revenue the fund manager earns.
Mutual funds generate returns for investors through three major sources:
Before selecting a mutual fund, review the following:
Here’s what dominates the sector:
Mutual funds are safer than picking individual stocks, but they’re not risk-free:
Mutual fund valuation relies on several key ratios and indicators like the broader equities market:
While mutual funds do not trade like stocks on the NGX, these metrics help investors gauge underlying value and long-term performance.
1. Define your investment goal: Are you seeking income, capital preservation, wealth growth, or diversification?
2. Determine your risk appetite: Risk-takers may opt for equity funds; conservative investors tend toward money market or fixed income.
3. Research fund options: Compare NAV trends, historical returns, expense ratios, and fund manager track record.
4. Choose your preferred investment channel: You can invest through:
Choose a platform that offers transparency, convenience, and low fees.
Choose a platform that offers transparency, convenience, and low fees.
5. Complete KYC requirements: Provide government-issued ID (passport, driver’s license, national ID), BVN, Proof of address (utility bill, bank statement), bank details as required by regulations.
6. Select your investment mode
7. Execute your purchase
8. Monitor your investment: Track performance, benchmark comparison, and portfolio reports. Adjust or rebalance as needed.
9. Stay invested for the long term: Mutual funds work best when held for extended periods to ride out market volatility.
Mutual funds remain one of the most accessible investment options for Nigerians looking to diversify their portfolios, preserve capital, hedge against inflation, or build long-term wealth.
According to Naijaonpoint, mutual fund performance has risen in recent years—supported by high yields on low-risk instruments, FX hedge opportunities, and strong investor demand for professionally managed investment products.
Unlike buying different securities individually, mutual funds allow you to access a basket of professionally managed assets with one simple investment.
And with minimum entry amounts becoming more flexible and digital onboarding now seamless, there’s no better time to start investing.