Invest Smartly in Nigeria with Mutual Funds and Unit Trusts (2025)

If you’ve ever wanted to invest but didn’t know where to start, Mutual Funds and Unit Trusts are the easiest doors into the investment world.

They’re professionally managed, affordable, and perfect for beginners who want to earn steady returns without monitoring the market daily.

In 2025, mutual funds in Nigeria are becoming more popular than ever, with thousands of Nigerians investing through Stanbic IBTC, ARM, FBNQuest, Cowrywise, and other trusted platforms.

What Are Mutual Funds?

A mutual fund is a pool of money collected from many investors and managed by experts who invest it in assets like stocks, bonds, treasury bills, and real estate.

Simply put, it’s like joining a group of people to invest together — but with professionals handling everything for you.
You buy “units” in the fund, and the value of your investment grows as the fund earns returns.

What Are Unit Trusts?

Unit Trusts are almost the same as mutual funds — they allow investors to pool money and invest collectively in various assets.

The only difference is legal structure:
Mutual Funds are structured as investment companies.

Unit Trusts are structured as trust schemes under trusteeship.
In Nigeria, the two are often used interchangeably and regulated by the Securities and Exchange Commission (SEC).

Why Mutual Funds Are Perfect for Nigerian Investors

—Low Entry Barrier: Start with as little as ₦5,000.
—%Expert Management: Managed by licensed professionals.
—Diversification: Your money is spread across many assets, reducing risk.
—Liquidity: You can withdraw anytime (except for locked funds).
—Transparency: Regular updates and audited reports.
—Better Returns: Higher than traditional bank savings.

Types of Mutual Funds in Nigeria

1. Money Market Funds

Invest in Treasury Bills, Commercial Papers, and Bank Deposits.
Average Return (2025): 11%–14% per annum.

Best For: Conservative investors who want safety and liquidity.

Examples:

—Stanbic IBTC Money Market Fund

—Crusaders Sterling Money Market Fund —Trust Fund Money Market
—FBN Money Market Fund
—ARM Money Market Fund

2. Equity Funds

Invest mainly in shares of companies listed on the Nigerian Exchange (NGX).
Average Return: 18%–25% annually (but more volatile).

Best For: Long-term investors willing to take higher risks.
Examples:
Lotus Capital Equity Fund
United Capital Equity Fund

3. Fixed Income Funds

Invest in Government Bonds and Corporate Debt Instruments.
Average Return: 13%–17% per annum.
Best For: Investors seeking stable growth and moderate risk.

5. Balanced Funds

Combine stocks, bonds, and money market assets for balanced growth.
Average Return: 14%–20% annually.
Example:
AXA Mansard Equity Income Fund

6. Ethical or Islamic Funds

Invest only in Sharia-compliant businesses (no alcohol, gambling, etc.).
Example: Lotus Halal Investment Fund

Expected Returns from Mutual Funds in 2025

Fund Type Expected Annual Return Risk Level
Money Market Fund 11%–14% Low
Fixed Income Fund 13%–17% Medium
Balanced Fund 14%–20% Medium–High
Equity Fund 18%–25% HHig

How to Invest in Mutual Funds in Nigeria

Option 1: Directly Through Fund Managers

Visit or sign up on the websites of top SEC-licensed fund managers like:

—Stanbic IBTC Asset Management
—ARM Investment Managers
—FBN Quest Asset Management
—United Capital Asset Management
—Meristem Wealth
—Cordros Capital

You can open an account online, fund it, and start investing in any fund of your choice.

Option 2: Through Fintech Apps

Fintech platforms now make mutual fund investing easier and mobile-friendly.

ALSO READ; Top fintech investment apps in Nigeria

Things to Consider Before Inve sting

—Investment Goal: Choose a funbased on whether you want short-term safety or long-term growth.

—Risk Appetite: Higher returns usually come with higher risk.

—Fund Performance: Review past returns and management track record.

—Fees: Check for management and exit fees.

—Liquidity Terms: Some funds have lock-in periods.

Real-Life Example

Michael, a 29-year-old Lagos entrepreneur,Mcstarted investing ₦20,000 monthly in Stanbic IBTC Money Market Fund in 2022.
By 2025, his total returns crossed ₦1.1 million — beating traditional savings by over 50%.
That’s the power of consistent, low-risk investing through mutual funds.

How to Track Fund Performance

You can check daily or weekly prices (called NAV — Net Asset Value) on:

—Fund managers’ websites
—SEC Nigeria portal (sec.gov.ng)
—Financial news platforms like Nairametrics or Proshare

NAV determines how much each unit of your fund is worth — the higher it rises, the more your investment grows.

Conclusion

Mutual Funds and Unit Trusts are the simplest and safest ways to grow wealth in Nigeria without needing expert knowledge.

Whether you’re saving for a car, business capital, or retirement, mutual funds let you earn passive income, diversify risk, and grow steadily over time.

Start with ₦5,000 today. Let professionals handle the rest while your money multiplies quietly.