May 15, (THEWILL) — Nigeria’s mutual funds industry extended its growth streak in April 2026, with total Net Asset Value (NAV) rising to ₦8.77 trillion from ₦8.44 trillion in March, representing a 3.89 percent month-on-month increase, according to data from the Securities and Exchange Commission (SEC).
The expansion reflects sustained investor participation across asset classes, with the number of registered funds rising to 202 from 200, while total unitholders increased by 51,451 to 1.31 million, underscoring growing retail and institutional appetite for collective investment schemes in a high-inflation environment.
Money Market Funds remained the dominant segment, accounting for 64.83 percent of total industry NAV at ₦5.68 trillion, up 4.34 percent month-on-month. The category continued to benefit from elevated interest rates, delivering an average year-to-date (YTD) yield of 16.67 percent and attracting 733,302 unitholders. The segment’s resilience was reinforced by stable inflows into short-term instruments, with top funds posting YTD returns above 19 percent, driven by high treasury yields and liquidity preference among investors.
Dollar-denominated funds followed, with NAV rising slightly to ₦1.85 trillion, accounting for 21.05 percent of total assets. Growth remained modest at 0.47 percent, but the segment continued to serve as a currency hedge amid exchange rate volatility, delivering an average YTD yield of 4.58 percent.
Real Estate Investment Trusts (REITs) rose 2.44 percent to ₦505.64 billion, while maintaining steady investor participation of 229,787 unitholders. Bond and Fixed Income Funds, however, declined 2.26 percent to ₦235.71 billion, despite a 2.35 percent increase in unitholders, suggesting portfolio rotation toward higher-yielding assets.
The strongest momentum came from Equity-Based Funds, where NAV surged 26.71 percent to ₦216.34 billion, making it the fastest-growing category. The segment also delivered the highest average YTD return of 46.35 percent, supported by strong gains in banking, consumer goods, and industrial stocks amid a bullish equities market.
Balanced Funds also recorded solid performance, rising 12.04 percent to ₦137.05 billion with YTD returns of 30.54 percent, while Shariah-compliant funds grew 11.87 percent to ₦125.95 billion, reflecting rising demand for ethical investment products.
Ethical Funds, though the smallest segment at ₦18.04 billion, posted a strong 20.76 percent growth and YTD returns of 28.91 percent, highlighting niche but rising interest in ESG-aligned investing.
Overall, the April data show a market increasingly shaped by equity-driven returns, sustained money market dominance, and expanding retail participation as investors seek inflation-hedged and professionally managed portfolios.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
