₦airaland Forum

emmasoft:
@bassdow, good job. It's simple and clear. However, when it comes to the mutual fund business MMF in particular, you will always have plus or minus at the final figures you get, but what you have done is commendable.

However, one thing I have done over the years to keep and maintain good mental health about my mutual fund investment is to just have faith in the system and believe they will do or are doing as stated in their fact sheets.

I was doing a lot of calculations and comparing rates a lot, but after some time, I just decided otherwise before a low-risk investment would begin to give me sleepless nights.

It's even better now. During the analogue days, everything was just by faith and trust.

By the way, for those using Stanbic and, by extension, other apps, understand that the app is just a window to view your investment account at the backend. What you see on the web portal/app is just representing your investment. Even if the app crashes, it has nothing to do with your investment; what simply happened is that one of the windows through which you view your account is having an issue, not your investment. Your investment is intact. What you see when you check your account online is not cash like your bank account.

For your investment to be converted to cash, the fund manager, custodian bank, and the trustees must be involved, unlike a debit on your bank account, where the money leaves your account immediately based on your instruction.

This is the reason why it takes a few hours before you get a credit alert when you make a withdrawal. If you check the original document, you will see redemption of most MMFs is stated as 2 to 3 working days - analogue days, but improved technology has made things easier.

Even at that, that it's still part of the process in the industry that a call be put through to the investor depending on the amount involved in the withdrawal process. A voice recording is part of the process; it's also the reason for the request of your BVN during registration to be sure any cash leaving your investment account is going to the right investor. Changing this registered bank account also has a process to pass through.



All the traditional fund managers still have the first principle way of fund withdrawal, ie, using the redemption form, even when there is no website or app, investors will still get their money.

I just say the above to allay our fears concerning some experiences with the app/web portal of Stanbic Asset Management over this weekend.

Let's not panic, your investments are safe and remain a low-risk investment with your capital and varied returns guaranteed.

ukingscorps:
Mutual funds are a good option for long-term wealth building, but one thing I’ve noticed from experience is that they can’t always provide short-term liquidity or high monthly returns.

That’s why I personally combine them with a low-risk income stream that brings in steady cash flow daily — P2P crypto trading. Unlike most funds, you’re not waiting 90 days to see profit; you can withdraw earnings the same day you make them.

The principle is the same as good fund management:
1. Protect your capital first
2. Follow a set strategy, not emotions
3. Keep reinvesting to scale

I’ve documented the exact beginner-friendly blueprint I use — anyone curious can check my profile for the details.

Amycanada:
Yeah, I'm using the old app.

But, it's not recognising my "secret answer" to the secret question asked during the redemption process.
I want to redeem some money.

Neurotika:
Let me say this for those at the back.

I’ve observed that when it comes to MMFs, there are generally two types of investors. The first believes rate fluctuations are normal and sticks with one fund no matter what, even if it falls below market average. The second reacts to significant dips, especially when returns drop below the market average, and moves their capital to sustain better yields.

Both approaches actually have their merits, depending on whether you’re taking a short or long position. I fall into the second category for one reason : I’m a long-term investor working with significant capital, and I always invest with a goal in mind. My benchmarks are built around certain expected rates, and if a fund’s performance becomes too erratic, it throws off my long-term projections.

For example, just a 1.5% lower rate sustained over 10 years on ₦100 million results in a loss of about ₦53.5m (using a conservative rate of 14 and 12.5 percent respectively). That’s not something I’m willing to ignore.

Therefore if you’re investing short-term, rate variations should not matter much unless you’re deploying serious capital. But if you’re locking huge funds for atleast a decade or more, you definitely should be seeking optimal yields.

Compounding works on three key variables: time, capital, and interest. If you’ve got the first two sufficiently but settle for less on the third, you’re simply shortchanging yourself.

Just my two cents….

Neurotika:
Let me say this for those at the back.

I’ve observed that when it comes to MMFs, there are generally two types of investors. The first believes rate fluctuations are normal and sticks with one fund no matter what, even if it falls below market average. The second reacts to significant dips, especially when returns drop below the market average, and moves their capital to sustain better yields.

Both approaches actually have their merits, depending on whether you’re taking a short or long position. I fall into the second category for one reason : I’m a long-term investor working with significant capital, and I always invest with a goal in mind. My benchmarks are built around certain expected rates, and if a fund’s performance becomes too erratic, it throws off my long-term projections.

For example, just a 1.5% lower rate sustained over 10 years on ₦100 million results in a loss of about ₦53.5m (using a conservative rate of 14 and 12.5 percent respectively). That’s not something I’m willing to ignore.

Therefore if you’re investing short-term, rate variations should not matter much unless you’re deploying serious capital. But if you’re locking huge funds for atleast a decade or more, you definitely should be seeking optimal yields.

Compounding works on three key variables: time, capital, and interest. If you’ve got the first two sufficiently but settle for less on the third, you’re simply shortchanging yourself.

Just my two cents….

Neurotika:
Both approaches actually have their merits, depending on whether you’re taking a short or long position. I fall into the second category

Compounding works on three key variables: time, capital, and interest. If you’ve got the first two sufficiently but settle for less on the third, you’re simply shortchanging yourself.

J

FRANKLYex:
InvestNaija Market Watch: 11th of August 2025


Happy Monday, INsider!
New week, fresh opportunities and the market wasted no time making moves. The ASI posted a modest gain, but the real fireworks were in insurance stocks, which once again led the charge. Let’s break it down.

💱 Currency

The Naira traded between ₦1,500 and ₦1,540 per US dollar, closing weaker at ₦1,535.93 (-0.15%) according to the CBN.

Nigeria’s gross external reserves ticked up 0.33% to $40.29bn (as of 8 August 2025).


📌 What this means: A slight currency dip offsets the boost in reserves, FX stability remains a balancing act.

📊 Equities

The NGX ASI rose by 0.09% to 145,880.77 points, pushing YTD gains to 41.73%. Gains in MTNN, DANGCEM, and ZENITH helped the index stay green.

Top traded by volume: LINKASSURE (703.59mn), UNIVINSURE (230.54mn), AIICO (154.73mn)

Top traded by value: STANBIC (₦1.70tn), LINKASSURE (₦1.60tn), ZENITHBANK (₦1.20tn)

Sector snapshot:

Gainers: Insurance (+9.74%), Consumer Goods (+0.97%), Banking (+0.44%)

Losers: Industrial (-1.47%), Oil & Gas (-0.56%)

🟢 Top gainers: AIICO (+10.00%), SUNUASSUR (+10.00%), STANBIC (+10.00%)
🔴 Top losers: ABBEYBDS (-10.00%), ABCTRANS (-10.00%), UACN (-9.99%)


📌 What this means: Investors continue to pour into insurance names, while industrial and oil & gas sectors face headwinds.

👀 Did You Know?

The Insurance index’s +9.74% jump today is nearly double Friday’s rally, back-to-back strong sessions that could signal sustained investor momentum.

💵 Fixed Income

OMO: Average benchmark yield fell 5bps to 25.46% as buyers dominated across all maturities.

NTBs: Average yield slid 12bps to 16.59%, with notable demand for the Nov-25 (-37bps) bill.

Bonds: Average benchmark yield rose 2bps to 16.30% as heavy selling hit Apr-37 (+52bps) and Jun-38 (+19bps).


📌 What this means: Short-term instruments are in demand, but longer-dated bonds saw profit-taking.

🏦 Money Market

OPR eased 8bps to 26.42%, while O/N held at 27.00%. System liquidity tightened, with bank balances falling to ₦313.92bn from ₦750.31bn.


📌 What this means: Lower liquidity could push short-term borrowing costs higher later in the week, especially if demand for cash spikes ahead of mid-month settlements.

🌟 Mutual Fund Highlight – Chapel Hill Denham Paramount Fund (Equity)


Closed at ₦50.49 as of 8 August 2025, with a YTD return of 65.82%.
The fund’s performance reflects strong equity market momentum, especially in high-growth sectors like insurance and banking.


📌 What this means: Riding market rallies through an equity mutual fund can deliver impressive gains, remember capital is at risk.


That’s your Monday market wrap, INsider. From insurance rallies to shifting bond yields, the week is already looking interesting. Let’s see where it goes.


Stay INformed,
The InvestNaija Team

📚 Glossary Corner: Today’s Market Terms, Simplified

Mutual Fund: An investment that pools money from many investors to buy a diversified portfolio of securities.
YTD (Year-to-Date): Measures how much an investment has gained or lost from the start of the year up to today.
Liquidity: The amount of cash in the financial system, which affects interest rates.
bps (Basis Points): A unit of measure in finance. 100bps = 1%. Used to describe rate changes.
NAV (Net Asset Value): The price per unit of a mutual fund. It tells you how much each of your units is worth.

synoble:
Wow, 53.5M or 5.35M...
We'll need to be sure about the figures...

A305:
Like you rightly mentioned; two types of investors.

Invertors 1 — plays the long game and doesn't react to dips and rates.

Investors 2 — reacts to dips because they project for themselves a certain benchmark to earning hence moves elsewhere for better yield.

You correct. however, my answer to this is, Investor 1 are the real Mutual Funds investors, these are real people or targeted audience that Mutual fund investment was invented for and love to cater to.

Investors 2 — These are the business/profit oriented investors who don't have the appetite for HIGH RISK, they are scared to take high risk yet they love high yield but can't take risk. More like, they want to eat their cake and have it.

Mutual funds Investor 2 are part of the people that drove up the share prices of Nigeria Stocks to all time high 2 weeks ago. The rally was massive.

The Nigeria stocks all share index was massive last month.

What happened was: as the capital market was loosing steam and yield dropping (Tbills, MMF etc), they sensed a bullish run, then began to withdraw their money from capital market to buy those stocks to make money.

My prediction is:

Watch out, the next MPC is in September. If CBN still hold MPR more people will leave the capital market and the very moment stocks begin to correct itself, and foreign investors begin to pull out (around Christmas), they will all rush back to come and join us to drag low yield in the capital market.

Anothet thing is, There is usually inflation around December due to over spending and people sending money back home from abroad, let's see if MPR will be increased.

blessedchild234:
that means you're more on the cowrywise (FIntech) kind of investor?

A305:
Bros, you just copied ChatGPT and posted for us, Not everyone will understand this and you couldn't even bother to explain.


Anyways in layman's language, the summary of what you posted is; people are picking Equities (stocks) over long term bonds. And as at today, the bullish equities are in the Insurance sector, it's worthy to note that the momentum is still ongoing, it also warns that if you run the type of mutual funds which the underlying asset is in equities, then congratulations but be conscious of when the momentum stops. Your capital could be at risk.

Jeoma2024:
Something came to my mind and I said let me ask the group if it is really possible

As an individual, doing business in Nigeria not working with any organisation or government

Is it possible to get pension account

Like open pension account with one of the pension companies and be contributing monthly

If possible then I will need a guide on how to go about it

What is the interest rate like?

Does it really make sense?

Jeoma2024:
Something came to my mind and I said let me ask the group if it is really possible

As an individual, doing business in Nigeria not working with any organisation or government

Is it possible to get pension account

Like open pension account with one of the pension companies and be contributing monthly

If possible then I will need a guide on how to go about it

What is the interest rate like?

Does it really make sense?

Jeoma2024:
What is the interest rate like?

Does it really make sense?

brainhack:
With the volume of funds at their disposal they are grossly underperforming in my own opinion.

Regardless I also do pension voluntary contributions, solely for investment diversification.

https://www.pencom.gov.ng/wp-content/uploads/2020/11/RATES-OF-RETURN-DATA-2016-TO-2019-RSAs.pdf

Neurotika:
The conventional pension system is basically a government-backed scam. I’ve always said this. Giving ridiculous rates on a fund meant to last 30+ years makes no sense, especially in a country with galloping inflation. Imagine working for 35 years then one govt just wakes up and prints 40% of the total money supply, inflating away 30 years of your work. By retirement, your savings will be worth nothing less than a tissue paper.

brainhack:
I doubt there is any year, any PFA’ annual return beats inflation.

Imagine year after year receiving rates on your retirement fund, that doesn’t beat inflation. Smh

*********************************
Ps: just to be sure I asked ChatGPT to confirm

brainhack:
With the volume of funds at their disposal they are grossly underperforming in my own opinion.

Regardless I also do pension voluntary contributions, solely for investment diversification.

https://www.pencom.gov.ng/wp-content/uploads/2020/11/RATES-OF-RETURN-DATA-2016-TO-2019-RSAs.pdf

FRANKLYex:
Yes, very possible. Just be making voluntary contributions at your pace. Just get in touch with any PFA of your choice, they will be glad help

Jeoma2024:
do you have ideas if the interest rate is up to that of MMF

Neurotika:
The conventional pension system is basically a government-backed scam. I’ve always said this. Giving ridiculous rates on a fund meant to last 30+ years makes no sense, especially in a country with galloping inflation. Imagine working for 35 years then one govt just wakes up and prints 40% of the total money supply, inflating away 30 years of your work. By retirement, your savings will be worth nothing less than a tissue paper.

monikulapo:
Honestly, from casual observations.. I feel the bulk of the mutual funds industry is as well. Even though two truths can coexists no one was willing to explore that conversation. Returns are guaranteed .. awesome. However, something seems off about the transparency of investments.. I was hoping someone (perhaps an accountant) would point out ways these things can be publicly tracked.

monikulapo:
Honestly, from casual observations.. I feel the bulk of the mutual funds industry is as well. Even though two truths can coexists no one was willing to explore that conversation. Returns are guaranteed .. awesome. However, something seems off about the transparency of investments.. I was hoping someone (perhaps an accountant) would point out ways these things can be publicly tracked.

alexokeke325:
Pls I need answers , I transfered money from my wallet to my mmf account since 3:am today and till now it have not appeared in my mmf acc

Jeoma2024:
Something came to my mind and I said let me ask the group if it is really possible

As an individual, doing business in Nigeria not working with any organisation or government

Is it possible to get pension account

Like open pension account with one of the pension companies and be contributing monthly

If possible then I will need a guide on how to go about it

What is the interest rate like?


Does it really make sense?