Interest rate movements and investors expectations have generated opportunities for the money market fund instruments.
The hawkish stance maintained by the monetary authority spurred an uptrend in yields in the Nigerian money and fixed income market in 2024.
Market rates have been on a rise since last year with the one-year Treasury bill yielding 25 percent and that of Commercial Papers have also hovered near 28-30 percent
This has spurred investors’ interest into the market, however left out retail investors.
In a BusinessDay survey on how to invest in the money market, many financial analysts advised doing these through mutual funds. This is because the barrier to entry for most money markets and fixed income instruments are high.
Also mutual funds come with other advantages such as diversification, professional management, rupee cost averaging, and tax benefits.
Mutual funds are created with the intent of pooling funds from various investors who are willing to diversify their holdings.
The return on the Fund depends on general trends and the condition of the money market from time to time. Returns/interest on most money market funds are paid quarterly.
Recent report by the Security Exchange Commission (SEC) showed that the Money Market Fund has a net asset value of N1.88 trillion as at January 24.
Here are some of the top performing Mutual funds in January according to the latest Net Asset Value and Unit Price report by SEC, Many of these funds can be bought for as low as N5000.
CardinalStone Money Market Fund
The CardinalStone Money Market Fund had a return of 24.58 percent and a net asset value of N2.5 billion.
It has a minimum subscription of N 100,000.
The Fund is targeted at retail investors, high-net worth individuals, and qualified institutional investors with low-risk appetite who wish to seek capital preservation and steady income through investing in a portfolio consisting of high-quality money market instruments which will include Federal Government of Nigeria treasury bills, fixed deposits, commercial papers, certificate of deposits, collateralized repurchase agreements, banker’s acceptances etc.
The performance of the CardinalStone Money Market Fund is updated on a regular basis, typically daily, in addition to the publication of a monthly Fact Sheet.
The performance of the fund is benchmarked against the stop rate on the 90-day treasury bill, or any other benchmark as advised by the Fund Managers Association of Nigeria (FMAN) and approved by the Securities & Exchange Commission.
Read also: Here’re what to know about CardinalStone Money Market Fund
Meristem Money Market Fund
The Meristem Money Market Fund provides steady income to investors through short-term, high-quality money market instruments in Nigerian Naira while maintaining liquidity and stability of principal.
The fund performed an average of 24.24 percent in January. The fund has a minimum entrance of N10,000.
The fund asset allocation is 52.9 percent in treasury bills, 35.3 percent in deposits, 11.2 percent in commercial papers, and 0.6 percent in cash.
The fund targets capital preservation and aims to provide returns in line with interest rates of money market instruments, with a minimum required return of the average 91-day Treasury Bill yield. It is authorized by the SEC and managed at the discretion of the investment team, with earned interest distributed to unit holders.
Anchoria Money Market Fund
The Anchoria Money Market fund had a return of 23.95 percent in January, with a minimum entrance fee of N5,000.
This fund is a low-risk, open-ended investment product that lets you invest in money market instruments such as Treasury bills,Certificates of deposit, Commercial papers, and Banker’s acceptance. Its main objectives are to provide high liquidity, capital preservation, and moderate income.
EDC Money Market Fund Class A
The EDC Money Market Fund Class A had a return of 23.86 percent in January with a net asset value of N32.5 billion.
The Fund caters for retail investors and is invested in a portfolio of short term money market securities and short duration government securities, including discounted instruments with rated financial institutions in Nigeria.
The minimum amount that can be invested is N5,000 and scalable in multiples of N1,000.
First Ally Money Market Fund
This fund had a return of 23.81 percent in the first month of 2025, with a net asset value of N981.85 billion.
It also has a minimum entry fee of N5000.
Read also: Chapel Hill Denham advises Aradel on NGX listing by introduction
Chapel Hill Denham Money Market Fund
Last month, the fund made a return of 23.65 percent, with a net asset value of N14.28 billion.
The fund has a Minimum Investment amount of N5,000 and an additional Contribution in multiples of N1,000.
The Chapel Hill Denham Money Market Fund is an actively managed open-ended mutual fund that invests in a diversified portfolio of assets that provides a steady stream of income, liquidity and security of assets.
RMBN Money Market Fund
The Fund invests in a diversified portfolio of investment grade and liquid Money Market instruments with tenors not greater than 365 days and a weighted average maturity not exceeding 90 days.
In January it realised a return of 23.30 percent, and a net asset value N6.5 billion.
FBN Money Market Fund
The FBN Money Market Fund had a return of 22.96 percent in January, with a net asset value of N385 billion.
The fund is an open-ended mutual fund that invests in a diverse portfolio of short-term, high-quality money market instruments such as Treasury Bills, Commercial Papers, Bankers Acceptances, and Certificates of Deposit issued by rated Nigerian banks.
To invest in the FBN Money Market Fund, a minimum of N5,000 is required. Distributions are paid out to you quarterly.
Coral Money Market Fund
The Coral Money Market funded yielded a return of 22.76 percent in January with a net asset value of N37 billion in January
This is an open-ended unit trust scheme that invests exclusively in money market instruments- instruments with maturities less than 365 days. Investors are able to enjoy significantly higher returns than what is obtainable from the average savings account.
Emerging Africa Money Market Fund
Emerging Africa Money Market Fund yielded a return of 22.76 percent with a net asset value of N3.63 billion.
The Fund is an actively managed open-ended fund that predominantly invests in credit-rated Naira denominated high quality money market instruments, fixed term deposits, treasury bills, issued by sovereigns, corporate entities and other entities as permitted under section 171 (2) of the Investments and Securities Act.
Minimum Subscription 5,000 Units, and in multiples of 5,000 Units thereafter at offer price of N1 per unit.
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