₦airaland Forum

Samcathe:
Many times, we argue based on assumptions

Ask each companies they claimed to deploy your money to and come back with the response. Then we can have a proper conversation.

welzyj2:
You af join them

Batman2412:
If you can't beat them, join them

Batman2412:
If you can't beat them, join them

emmasoft:
On Point 1: Nature of Mutual Funds

Mutual funds are primarily defined by the nature of the fund, not by the fund manager. Broadly, they are categorized as:

Low risk – e.g., Money Market Funds (MMF)

Medium risk – e.g., Bond Funds

High risk – e.g., Equity Funds

Irrespective of the fund manager, the safest category—by definition—is the Money Market Fund. Whether the fund manager is old or newly established, an MMF remains low risk and focused on capital preservation.

For example, an equity fund does not become less risky because it is managed by Stanbic, nor does it become more risky because it is managed by Norrenberger or a firm that started less than a year ago. Risk is determined by the asset class, not the brand name of the fund manager.

On Point 2: SEC-Mandated Checks and Balances

For every fund type, the Securities and Exchange Commission (SEC) mandates a strict structure of checks and balances. These include the following parties:

- Registered Fund Manager
The fund manager must be registered not only with the Corporate Affairs Commission (CAC) but also licensed by the SEC. SEC registration is the key requirement here.

- Custodian Bank
This is an independent bank that is completely unrelated to the fund manager. A fund manager that belongs to a banking group cannot use its affiliate bank as custodian.
Examples:

Stanbic Asset Management → Custodian: UBA

Norrenberger → Custodian: UBA

FBNQuest → Custodian: Citibank

United Capital (UCAP) → Custodian: Stanbic Bank

Therefore, assuming you are dealing with a bank simply because the asset manager belongs to the same group is a misconception. The bank and the asset manager are separate entities with no operational overlap in this regard.

- Trustees
Trustees act as co-signatories to the fund accounts. This is why collection accounts of fund managers typically carry two names.
No funds move in or out without the knowledge and authorization of the trustees. They also ensure that the fund’s mandate is strictly followed. For example, they ensure that investors’ funds in an MMF are invested only in approved instruments such as Treasury Bills and commercial papers, and not diverted into equities or other high-risk instruments, regardless of attractive rates.

- SEC (Securities and Exchange Commission)
In the capital market, the SEC is the apex regulator. It oversees and regulates all activities of fund and asset managers.
Simply put, the SEC is to fund/asset managers what the CBN is to commercial banks and other deposit money banks.

Finally,

Any fund that operates with all the structures above in place is safe to invest in, even for very large sums, and investors can be confident and at rest.

Anything outside this framework—regardless of the name, promised returns, or how long it has existed—should be treated with caution, as it is likely a Ponzi scheme.

Also, the fact that I share registration links does not make me your fund manager, nor does it mean you are investing with me. By reason of knowledge and experience, I am simply a representative and ambassador of some of these firms.

Please be well guided.

Kindly click the second link in my signature to register with Norrenberger and support my ministry, or feel free to reach out to me for more information on mutual funds or stocks.

Happy investing!

ManAdii:
The 1.4% management fee for Trustbanc via cowrywise. Is it one off or monthly?

Mrajah231:
Hello all…I just opened my blunest and saw that my investment is not corresponding with what I have. It’s way lower, difference of 289k. Please what’s the issue here

heavenisreal18:
Pls I opened my Stanbic mmf investment now what I was having there yesterday was 530k ,this morning I saw 420k the I amount I invested was 500k

Preator:
These are usual end of month shenanigans. Just give it till monday and everything go normalize. Them go still credit you double returns sef b4 adjusting it.

Babygal2020:
Una dey try aswear.

Only 32M wey I get for Stanbic, I no get mind to move am to Cowrywise.

Also, I'm a lady. We no too get mind.

Batman2412:
So I decided to fund trustbanc mmf directly via prime pro some couple of hours ago. Yeah, no charges. But the fund has not reflected on my dashboard. When I funded my trustbanc mmf via cowrywise, the funds reflected on my dashboard within few minutes. I'm beginning to think the extra N250 charges with cowrywise is worth it. I'm allergic to delays

Princewalexy99:
Please who really know much about GT MMF as I appear to be a new beginner as their daily rate often appears fairly attractive since started with them.

Creditalerts:
Palmpay is charging me 53,600 to help me invest 10million naira on MMF why?😡

Alaska90:
Please how long have you been with GT MMF ?
I bank with them too and I dont mind openning account with them for easy access
What has been the lowest and highest rate since you joined them?

Thanks

Iamblessed88:
It’s only on this thread i’ve seen the argument that AUM and stability have no correlation. Folks don’t realize the advantages of AUM untill the market goes through some sort of stress.

When you liquidate your investments and get paid in an hour sometimes, do you truly believe the underlying holdings were sold off that quick? Fund managers usually keep a cash buffer to meet liquidity without necessarily selling off investments all the time.

The larger the AUM, the larger the buffer but as i said, you wont feel the impact in a smooth sailing market.

Also, forget SEC, the larger the AUM, the greater the scrutiny. Try and apply for an update to your signature or account details with stanbic, you would be lucky if this is done in a week. The reason is not due to sluggishness but because they have alot of hoops to cross (internal control). Now contrast it with a smaller fund manager. I had my account details changed on the app of a fintech FM in seconds and to be honest, i felt abit unsafe.

Yes, market risk (Beta) is thesame but there’s also such a thing as idiosyncratic risk which is unique to each firm.

For those using cowrywise, are they sec accredited? No. Who’s to ensure that they actually deploy your funds to those companies listed on the app since there aren’t any trustees to vouch?

jp130:
I redeem my Stanbic equity fund to my wallet before 7am yesterday hoping it will land in my wallet before close of business but up till now no show. I need to push it to mmf from the wallet when it lands. Who has done this redemption before and how long did it take on the app?

bassdow:
why leaving Equity based investment ? ? ?

bassdow:
Me don talk I don leave them alone. Is Funny enough, na company representatives and marketers dey do more of the convincings.

As for me, keep a bulk with the big guys and keep the restw ith those with large interest rates if that's your target. Look well , na mostly those with little funds get mind dey jump about; even Nigerian poliThiefCians never jump reach them

bassdow:
As you no gree go direct to source na. Instead make you go market yourself, you send neigbour; now come dey complain you spent more, what were you expecting ?

Mrajah231:
Hello all…I just opened my blunest and saw that my investment is not corresponding with what I have. It’s way lower, difference of 289k. Please what’s the issue here

Dondav:
Stanbic current rate at 16%...

doggedfighter:
We are on , Baby !!💃💃💃💃💃💃💃

Creditalerts:
🤣🤣🤣🙄😫

doggedfighter:
I know you must show face 😜

😂😂😃

bassdow:
very soon, dem go call you to beg money for school Fees or medical bills. na some people work for Nairaland be that. Scanning threads for people wey get money. Dem no no say some of us na packaging