Introduction: In the realm of short-term investment options, Money Market Funds stand out as a favored choice among investors seeking stability and liquidity. Offering higher interest rates compared to regular savings accounts, these funds provide easy access to funds, investing in short-term debt securities such as Treasury bills, commercial papers, government-issued bonds, fixed deposit accounts, and other bank placements.
MyFinanceNG has meticulously curated a list of the top 10 money market funds in Nigeria for 2024, considering factors such as fund sizes, yield data, and ratings from reputable credit rating agencies. All funds featured are registered with the Securities and Exchange Commission (SEC).
- AIICO Money Market Fund: Managed by AIICO Capital Limited, the AIICO Money Market Fund boasts a fund size of N4.71 billion as of December 22, 2023, with an impressive yield of 14.24%. Rated A+(NG)f by GCR Ratings, this fund’s portfolio includes 37% fixed deposits, 25% treasury bills, and 24% commercial papers. The minimum investment is N10,000.
- ARM Money Market Fund: Managed by ARM Investment Managers, the ARM Money Market Fund holds a fund size of N79.94 billion as of January 7, 2024, offering an effective yield of 10.52% per annum. With a rating of A+(f) from Agusto & Co., the fund focuses on government securities and money market instruments. Minimum investment: N1,000.
- AXA Mansard Money Market Fund: Launched in 2016 and managed by AXA Mansard Investments Limited, this fund has a rating of A+(f). As of January 8, it boasts a net yield of 11.66% per annum and a fund size of N43.71 billion. The portfolio includes 67.18% fixed deposits, 25.59% treasury bills, and 6.65% commercial paper. Minimum investment: N2,000.
- Chapel Hill Denham Money Market Fund: With a fund size of N7.3 billion and a yield of 10.38% as of December 22, 2023, this fund, managed by Chapel Hill Denham Management Limited, holds a rating of A(F) from Agusto & Co. and AA- from GCR Ratings. The minimum investment is N5,000, with a minimum holding period of 30 days.
- FBN Money Market Fund: Managed by FBNQuest Asset Management, the FBN Money Market Fund, launched in 2012, has a fund size of N195.78 billion as of December 22, 2023, and an effective yield of 12.15% as of January 4, 2024. The portfolio comprises 7% commercial papers, 15% treasury bills, and 78% bank placements.
- Stanbic IBTC Money Market Fund: As the largest money market fund in Nigeria, Stanbic IBTC MMF boasts a fund size of about N375.7 billion. Launched in 2010 and managed by Stanbic IBTC Asset Management Limited, it holds a rating of Aa-(f) from Agusto & Co. With a yield of 13.25% as of December 22, 2023, the minimum investment is N5,000, and income distribution is quarterly.
- United Capital Money Market Fund: Managed by United Capital Asset Management Limited, this fund, with a rating of A(f) by Agusto & Co., has a size of N44.26 billion and a yield of 11.70% as of December 22, 2023. The minimum investment amount allowed is N10,000, and the portfolio features 26.1% treasury bills, 59.0% fixed deposits, and 15.0% commercial papers.
- Zenith Money Market Fund: Launched in 2017 and managed by Quantum Zenith Asset Management and Investments Limited, the Zenith Money Market Fund holds a fund size of N27.19 billion with a yield of 11.91% as of December 22, 2023. With a diverse portfolio encompassing cash equivalents, bank placements, short-term government securities, and other money market instruments, the minimum investment allowed is N10,000.
- Meristem Money Market Fund: Managed by Meristem Wealth Management Limited, the Meristem Money Market Fund has a size of N3.63 billion and a yield of 12.73% as of December 22, 2023. With a minimum entry amount of N10,000, the fund’s portfolio features approximately 48.3% treasury bills, 17.14% commercial papers, 32.7% fixed deposits, and 1.8% cash.
- Norrenberger Money Market Fund: Managed by Norrenberger Investment and Capital Management Limited, this fund has a size of N4.71 billion and a yield of 12.54% as of December 22, 2023. With a minimum subscription amount of N5,000 and subsequent investment contributions of N1,000, the fund holds a rating of Bbb+(f) from Agusto & Co.
ALSO READ: 5 Best banks for students in Nigeria (2023)
Important Note:
These carefully selected money market funds, based on their ratings, substantial fund sizes, and recent yield data, operate under the regulatory oversight of the Securities and Exchange Commission (SEC). While they provide a guide to potential performance and stability, market conditions may influence their future yields and overall performance. Additionally, all funds listed have their assets safeguarded by esteemed banking institutions within the country.
