The firm added, “Mutual funds are structured, they are tailor made to meet the desire and taste of the pool of investors in the fund. Because they are structured, they can be designed to satisfy various investor needs. Mutual funds can be structured either as equity, debt or hybrid fund.”
According to the firm, the major types of funds are: equity funds, debt funds, hybrid funds, and money market funds, adding that other types include income funds, tax-saving funds, capital protection funds and pension funds. “Mutual funds can also be classified based on risks such as low risk, medium risk and high-risk funds, emerging market funds, global funds, foreign or international funds”, Comercio Partners added.
While noting that mutual funds in Nigeria recorded 11.02 per cent increase in net asset value to N1.388tn year-to-date, year-to-date, June 2022 from N1.250tn in the corresponding period of June 2021, Comercio Partners however noted that money market mutual funds dominated the growth, accounting for 41.93 per cent of the total NAV of the entire market.
It noted that it grew to N582.296bn as of June 2022, from N477.494bn in the corresponding period of 2021.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.