Investments in mutual funds for 2020 reach N450bn
In 2020, Nigerian mutual funds attracted over N450 billion in new contributions, pushing the asset under management (AUM) by 43% to N1.49 trillion from N1.042 trillion recorded in 2019.
A review of the Data published on the Securities and Exchange Commission (SEC), shows that most of these fresh funds flowed into fixed income and bond mutual funds.
Mutual Funds, otherwise known as Contributory Investment Scheme (CIS) is made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.
Breakdown of the figures shows that in 2020, Fixed income and Bond fund were the darling of mutual fund investors in 2020 sharing the highest inflow of capital.
Fixed income had the biggest attraction with 29.10 percent of the total investment worth N290.50 billion. Coral Income Fund and Stanbic IBTC Dollar Fund led this category.
Bond funds attracted over N223.94 billion; making up 14.99 percent of the mutual funds in Nigeria. United Capital Euro Bond Fund and Stanbic IBTC Bond Fund reported some of the biggest gains in this segment.
However, Real estate funds and money market funds category were the biggest losers as they shed a combined N31.59 billion in the space of 12 months.
The net asset value of money market funds reduced by N28.95 billion, from N735.76 billion at the beginning of last year, the money market funds shed 3.8 percent to close the year at N764.7 billion.
The real estate fund on the other hand declined by N2.65 billion in the period under review
Chapel Hill Denham Nigeria Infrastructure Fund, the only fund in the infrastructure fund category amassed a total contribution of N58.60 billion in 2020.