Nigeria's Mutual Funds Attract N1.29tr Investments In Capital Market

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Investors in the Nigerian capital market invested N1.291 trillion in Nigerian mutual funds known as collective investment schemes in 2021. Collective

In the fixed income market, yields advanced earlier than anticipated in H1 of 2021 before stabilising in the second half.The bearish sentiments in the fixed income market were driven mainly by the twin effect of upward re-pricing of OMO bills by the Central Bank of Nigeria to attract FPIs and frontloading of government borrowings, which led to a substantial increase in the supply of domestic debt instruments.

Review of the Funds showed that Money market funds, which invest mainly in money market instruments such as treasury bills, remain the largest group of mutual funds, as investors put in N543.945 billion. Also, Real Estate Investment Trusts, Mixed Funds, Shari’ah Compliant Funds, Equity Based Funds and Ethical Funds valued at N50.173 billion, N28.863 billion, N17.978 billion, N15.528 billion and N2.490 billion respectively.

Cordros Capital stated that mutual funds allow people to plan, save and invest towards their dreams and goals, including socio-economic and political goals such as a wedding, buying a house, starting a business, and furthering education among others.

 

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