₦airaland Forum

Preator:
Now stanbic rate is now looking ludicrous. 15.73%?

Donbrig:
Stanbic rate is very very discouraging at the moment, my concern is not just the 15.73% at the moment, but how low Stanbic rate would be if CBN should decide to reduce rate in February 2026, Stanbic might go single digit rate....

Other fund managers are hitting 17 to 18+%

Stanbic fund managers nor try at all.... They aren't wishing us a good happy Christmas with these rates..

Its like Stanbic now invest our funds in ordinary bank deposits

Beeron:
what you will do is simple.


You are in the market to make money. Don't leave money on the table because of loyalty.

You need to shop around, that's why it's called money market funds, shop around for the best price rates. Do NOT stay loyal to a name Stanbic, it's just a brand name.

Let's assume you have 10 million with Stanbic, pull out 3 million and shop around with high paying MMF on cowrywise, cowrywise makes that easy to do.

Shop around as you like on cowrywise, you wouldn't have to be opening different MMF accounts all over the place.

doggedfighter:
Could you please the cowriewise idea better.

You mean it has different MMFs on one platform ?

Beeron:
Exactly, Just invest in one high paying yield MMF this month on cowrywise and if by next month, that MMF yield drops, pull out your money and invest in another high paying mmf in the same cowrywise.

You don't need signing up for multiple MMF outside of cowrywise and all aggregated MMF on cowrywise are all SEC Approved.

And cowrywise doesn't have 30-days money hold policy before withdrawal, this is why it will be smart to trade MMF like stock on cowrywise, shop for the best deal.

Beeron:
Exactly, Just invest in one high paying yield MMF this month on cowrywise and if by next month, that MMF yield drops, pull out your money and invest in another high paying mmf in the same cowrywise.

You don't need signing up for multiple MMF outside of cowrywise and all aggregated MMF on cowrywise are all SEC Approved.

And cowrywise doesn't have 30-days money hold policy before withdrawal, this is why it will be smart to trade MMF like stock on cowrywise, shop for the best deal.

Donbrig:
@Beeron, thanks for all your contributions.. Its like cowrywise is acting like a middle man to these multiple fund managers, like a shopping mall where you go select goods of your choice?

TrustBank and Norrenberger fund managers are exceptionally good at the moment, we hope they keep the firing burning for a long time...

It does't make any economic sense staying with a particular brand/fund manager when it no longer serves your financial goals.

emmasoft:
Stanbic go chop cane very well. I can see abandonment/porting from investors very soon. Norrenberger and First Ally have come to challenge the status quo.

bassdow:
No be everyBody get strength to do migration. Would suggest people just leave with them what's currently there. Best would be to prioritize subsequent top ups with others

Donbrig:
If you have over 100M+ with a fund manager who isn't performing to expectations, you will have more than enough strength to relocate your funds immediately...

The gap between some fund managers in the past 7 to 8 weeks is over 2 to 3+%, that is a whole lot of differences, especially when your fund with such managers with low rate is huge.

Donbrig:
If you have over 100M+ with a fund manager who isn't performing to expectations, you will have more than enough strength to relocate your funds immediately...

The gap between some fund managers in the past 7 to 8 weeks is over 2 to 3+%, that is a whole lot of differences, especially when your fund with such managers with low rate is huge.

Preator:
Totally agree. Plenty of energy go dey for a circa 250k a month difference in returns

Iamblessed88:
But these other fund managers, are they reliable to leave about 100m + with them?

Preator:
As emmasoft had reiterated earlier, as long as the FM is SEC registered, the risks are the same for MMF.

bassdow:
...but we shouldn't forget / ignore the fact funds in MMF, or any other type ain't insured. Regulation !== Insurance.

Yes MMF is safe BUT nothing is 100% safe. That it's termed Low Risk, does not equate to Zero Risk

Also, that's beauty of having accounts with multiple providers. You split your funds and concentrate more on those giving you more joy

Preator:
With mmf, there will need to be a major disaster or act of God to lose your capital. Carries almost the same risk as Govt security

Beeron:
Bassdow was actually correct.

It isn't hard to lose your investment in mutual fund oooo. It's safe doesn't mean, no risk.

Ghana almost lost theirs just in 2022. Investors who invested in Fixed deposits, Mutual funds, Tbills faced delays getting out their cash.

Why?

Ghana had defaulted on Euro bond and for the internal government bond, they didn't only stop paying coupon, they repriced the bond, slashed the returns and made the duration longer. Their pension fund returns was slashed too. Even some Nigeria investors who invested in Ghana lost massively.

I'm talking just 2022 here.


IMF had to quickly step in to rescue Ghana in 2023.


It will surprise you to know that, Nigerian was on that path with Emefiele's CBN unothodox policies, and all those Liquidity Emefiele let out into the economy is what Cardoso is trying to mop up from circulation.

My point is, it only takes one default for the chain reaction of financial collapse to begin.

Just snap out of that mindset that it can't easily happen in Nigeria. This time last year, Nigeria economy was actually overheating.

Why were you getting high yield this time last year, it was because Government was borrowing excessively, so much that if they stopped, a collapse might happen.

Thank goodness for Cardoso's strategy to rebase both CPI and GDP. That was the major turn around.

It didn't mean Nigeria economy got better, it actually means, we just created an illusion that inflation has slowed down meanwhile, if FPI (hot money) dares leave the system, our Naira will crash the next day.

Babygal2020:
Good morning my bosses.

Please how can I know First Asset Money Market rate?

Wanna port from Stanbic to First Asset?

Preator:
No one said it is risk free. But no, it is hard to lose your fund to mmf. A sovereign nation defaulting is not an everyday occurrence, and a situation Nigeria is significantly far from. A default has implications for more than just the money market.

So while not risk free, it is definitely super low risk.

bassdow:
Are you aware a lot of people are using MMF in place of Ponzi scheme. There are people who could have 1 million naira in MMF, but struggle to have up to 50,000 naira in their saving bank account. In fact if not for everyday expenses, they would have got nothing in their savings bank account.

And there seem to be lots of competitors nowadays with lots of misInformations flying about. People need know VERY LOW RISK !== NO RISK

There even are those looking for what pays higher than MMF even while on the platform.

bassdow:
Are you aware a lot of people are using MMF in place of Ponzi scheme. There are people who could have 1 million naira in MMF, but struggle to have up to 50,000 naira in their saving bank account. In fact if not for everyday expenses, they would have got nothing in their savings bank account.

And there seem to be lots of competitors nowadays with lots of misInformations flying about. People need know VERY LOW RISK !== NO RISK

There even are those looking for what pays higher than MMF even while on the platform.

Neurotika:
Asides the regulatory structure of MMFs, they’re usually called low risk cos they stick to short-term, high-quality debts such as Tbills, short-term govt bonds, CPs and the likes. Govts can’t afford to default on these without collapsing the whole financial system. They have to keep the liquidity wheel rolling. When sovereign crises happen, only medium and long-term bonds get restructured. Very rarely would you see short term instruments being restructured. Argentina, Greece and even Ghana, same pattern. I feel it’s a bit pointless debating about this.

emmasoft:
Understanding MMF and Risk Level

Please understand that Money Market Funds (MMFs) remain low-risk investments, irrespective of opinions, economic conditions, interest rate levels, fund managers, or other external considerations.

The primary reason MMFs are classified as low risk is the nature of their underlying assets—and nothing more. MMFs invest in short-term, high-quality instruments such as Treasury bills, commercial papers, and other money market securities. It is the quality and structure of these underlying assets that determine the risk profile, not the rate of return.

Interest rates do not determine whether an MMF is low risk. There were periods when MMF yields were as low as 4–6%, yet MMFs were not “safer” then than they are now. Likewise, during periods when MMF yields rose to 25–28%, MMFs did not suddenly become “riskier.” Across all these periods—past and present—MMFs have consistently retained their low-risk status.

Therefore, low returns do not imply low risk, and high returns do not imply high risk when it comes to MMFs. Rate movements reflect prevailing market conditions, not a change in the fundamental risk nature of the fund.

MMFs remain low risk, and we should avoid attributing risks to them that are not inherent in their structure. Other mutual fund categories—such as equity funds, balanced funds, or hybrid funds—naturally carry higher risk due to their asset composition. MMFs do not fall into that category.

In summary, MMFs are safe, low-risk investment vehicles, and investors should simply enjoy the prevailing rates available across different fund managers without unnecessary concern.

enque:
https://first-assetmanagement.com/resources/funds-history/