Mutual Funds are a great form of investment especially for passive investors. According to data from the Security and Exchange Commission (SEC), Nigeria has about 107 Mutual Funds across several Fund Types. Below is a breakdown of Fund Types available for investors according to SEC.

To determine the best performing Funds, we looked at Fund Prices as of last business day December 2019 and compared to fund prices at last trading day June 2020. Below are the top 5. We also included profiles of the funds as described in their websites.

1. NEW GOLD ETF
Vetiva’s NewGold Exchange Traded Fund (NewGold) is an Exchange Traded Fund listed on The Nigerian Stock Exchange (NSE) in December 2011. It tracks price of gold and offers institutional and retail investors opportunity to invest in a listed instrument (structured as a debenture) fully backed by gold bullion. Each NewGold security is equivalent to approximately 1/100 ounces of real gold bullion held in a secured stockpile of gold bullion. All gold is kept in form of London Gold Delivery Bars and Good Delivery Standards are prescribed by LBMA.

December 27th: Fund Price – N5,220
June 26th: Fund Price – N8,000
Return – 53.3%
Ranking – FIRST
Commentary: Gold prices have been on the up since the Covid-19 pandemic took hold of the global economy. Investors are uncertain and as history shows, gold prices are always up during market uncertainty. If you are looking for protective investment in times of uncertainty then this is the best performing fund so far.

2. FBN NIGERIA SMART BETA EQUITY FUND
FBNH owned Smart Beta Equity Fund is a pure equity fund that invests predominantly in a portfolio of Nigerian companies, using a rigorous, research-based and tested evaluation ssystem. It provides long-term capital preservation by investing at least 75% of assets (excluding cash and cash equivalents) in a diversified portfolio of high-quality companies listed on NSE. In order to manage liquidity, the fund may also invest up to 25% in short-term money market instruments and deposits with financial institutions.

December 27th: Fund Price – N129.17
June 26th: Fund Price – N197.29
Return – 52.7%
Ranking – SECOND
Commentary: For a fund predominantly focused on equities, this a pretty impressive performance. For example, NSE All-Share Index is down 9.8% year to date. If you are worried about investing in stocks and don’t have the heart for it and are looking for a mutual fund, then this is the best performing fund out there.

3. VANTAGE BALANCED FUND
Investment One’s Vantage Balance Fund (launched 2002) is focused on long term capital appreciation, achieved by maintaining flexible diversified portfolio of equities, fixed income, money market, and real estate. Assets are high-quality equity instruments quoted on NSE while the bond issuers have investment-grade rating from a credit rating agency registered by SEC.

December 27th: Fund Price – N2.21
June 26th: Fund Price – N2.87
Return – 29.9%
Ranking – THIRD
Commentary: This is a Mixed fund as it invests in a diverse pool of assets. Interesting to note that managers of this fund also have an Equity-Based Fund, a Dollar Fund, and a Fixed Income Fund. But none of them come close to the Balanced Fund. If you are looking for a portfolio with a good mix of investment assets then this is the best performing as of June 2020.

4. LEGACY USD BOND FUND
FCMB Asset Management Owned Legacy USD Bond Fund (launched 2018) is a SEC-registered US Dollar-denominated Collective Investment Scheme, structured as a high-yield mutual fund. It seeks to generate stable income over the long-term by investing in credit-rated US Dollar-denominated fixed income securities issued by the Nigerian Government, supranational bodies, and corporate entities.

December 27th: Fund Price – N306.5
June 26th: Fund Price – N360.5
Return – 24.4%
Ranking – FOURTH
Commentary: it is the best performing mutual fund if you are looking for dollar-denominated fixed-income debt securities like Eurobonds. At 24.4% they seem to be holding bonds with good yields and market value. Apart from the Bond Fund, managers of the Legacy Bond Fund also manage a Fixed Income Fund, a Money Market Fund and an Equity Fund. If you are looking to invest in Eurobonds then this mutual fund is the best performing.

5. VANTAGE DOLLAR FUND
Investment One’s Vantage Dollar Fund (launched 2018) is a SEC registered open-ended Unit Trust Scheme in Nigeria. It seeks to provide investors with bias for Dollar-denominated securities access to such securities, which ordinarily would be inaccessible by virtue of minimum amounts typically required for such investments. It invests primarily in Corporate and Sovereign Eurobonds.

December 27th: Fund Price – N401.02
June 26th: Fund Price – N469.2
Return – 17.0%
Ranking – FIFTH
Commentary: This is the second dollar mutual fund on the list and the second from Investment One to make the list of best 5. It appears they have the hang of fund management. Dollar Mutual funds are a great form of investment and it is great to see another in the top 5. Thus, if you want another option, then this is one you can also go for.

BUBBLING UNDER: The following funds make up the rest of the top 5 on our list and in descending order.

6. AIICO Balanced Fund
7. VI ETF
8. Coronation Fixed Income Fund
9. CEAT Fixed Income Fund
10. United Capital Euro Bond Fund

SOURCE (abridged): https://nairametrics.com/2020/07/13/best-mutual-funds-in-nigeria-half-year-2020/