Nigeria’s money market mutual fund yields average 20.58% in January: Top performers and key insights

According to the Securities and Exchange Commission (SEC) valuation reports, the average year-to-date (YtD) yield for the 38 funds stood at 20.58% as of January 24, 2025, with an aggregate Net Asset Value (NAV) of N1.887 trillion.

Notably, 28 of these funds recorded yields above 20%. This marks a significant improvement from the 9.73% YtD yield recorded in the same period last year.

This performance also compares favorably to the 2024 full-year average YtD yield of 21.34%, reinforcing the appeal of these funds.

What are money market mutual funds?

Money market mutual funds are low-risk investment vehicles that pool funds from multiple investors to invest in short-term, high-quality financial instruments. These typically include:

The goal is to provide investors with liquidity, safety, and competitive yields, making them an attractive option, especially in uncertain economic conditions.

However, despite the strong yields, money market mutual funds still lag Nigeria’s December 2024 inflation rate of 34.80%, signaling the persistent challenge of real returns in an inflationary environment.

As investors seek capital preservation and competitive yields, certain funds have outperformed their peers, making them ones to watch in the coming months.

EDC Money Market Fund Class B +24.98% Yield YtD

EDC Money Market Fund Class B takes the lead with a 24.98% YtD yield, outperforming the industry average.

However, its relatively small NAV of N1.967 billion (0.11% of total NAV) and just 9 unitholders raise concerns about liquidity and investor concentration risks.

The high yield suggests an aggressive investment strategy, but the fund’s scalability and ability to sustain this performance remain questionable.

CardinalStone’s Money Market Fund is another strong performer, offering a 24.58% YtD yield, an increase from its 2024 full-year yield of 22.19%.

With a NAV of N2.375 billion and 312 unitholders, the fund demonstrates better diversification and liquidity compared to EDC Class B.

However, it remains a mid-sized player and faces competition from larger, more stable funds in the market.

However, it remains a mid-sized player and faces competition from larger, more stable funds in the market.

The fund is managed by CardinalStone Asset Management Limited.

Meristem’s fund offered a 24.24% YtD yield, an increase from its 11.94% yield in January 2024.

More importantly, it boasts a strong NAV of N20.961 billion, representing 1.11% of total NAV, and is supported by 3,386 unitholders.

This size and investor base enhance its stability, making it a more reliable long-term investment option compared to smaller funds like EDC Class B and CardinalStone.

Anchoria Money Market Fund has also delivered a 23.95% YtD yield, up from 10.33% in January 2024.

However, with NAV of N1.358 billion and 1,829 unitholders, it remains a relatively small fund in the industry. While its yield is competitive, its asset size limits its ability to compete with larger players like Meristem and EDC Class A in terms of long-term stability and liquidity.

Unlike its Class B counterpart, EDC Class A has a much stronger NAV of N32.547 billion, accounting for 1.72% of total market NAV, with 3,089 unitholders.

Despite yielding slightly less than Class B, its higher fund size and wider investor base make it a more stable and scalable investment option.

Investors looking for a balance between high yield and fund stability may find this a better choice compared to riskier, smaller funds.

Other top performers include 

While the current high yields are attractive, their sustainability depends on key macroeconomic factors:

Overall, money market mutual funds remain an attractive option for investors seeking stable, short-term returns, especially amid economic uncertainty.

However, fund size, investor concentration, and market dynamics will determine which funds can sustain their high yields over time.

Investors should carefully consider fund stability, liquidity, and risk exposure before making investment decisions.