₦airaland Forum

Well said, many people are underestimating the power of long term MMF investment, if you have huge funds in money market fund, with patience and monthly or quarterly compounding, you are definitely going to do well as the best performing stocks/equities out there...

Neurotika:
I think this applies to most investments in general. If you want significant returns, the capital too has to be huge. The relationship between risk and return is well known, but atimes is oversimplified. You could have high risk and decent returns…or none at all. And when you factor in the time wasted, the net of upsides and downsides may not outperform steady returns of fixed incomes that much. However, I quite agree you need a good base to get something out of MMF. Although it doesn’t have to be anywhere close to your stated amount.

At the end of the day “rich” is a relative term…and it’s personal to each individual. What matters is you get your math right and be disciplined at it.

AncestralPowers:
Well said, many people are underestimating the power of long term MMF investment, if you have huge funds in money market fund, with patience and monthly or quarterly compounding, you are definitely going to do well as the best performing stocks/equities out there...

Very fat lie @bold
Mmf can never perform like stock or equity long term. Definitely not in a country like Nigeria where inflation is running at uncontrollable speed.

So, i was discussing with a friend last weekend and he told me about the stanbic IBTC Pension FUND 1, though my pension account is in FUND 2, but looking at the rates, I had asked to be upgraded to FUND 1. Just info for anyone interested. See the rates

No monthly reinvesting on this one or how?

nickae:
So, i was discussing with a friend last weekend and he told me about the stanbic IBTC Pension FUND 1, though my pension account is in FUND 2, but looking at the rates, I had asked to be upgraded to FUND 1. Just info for anyone interested. See the rates

My foreign friends always think Nigerians are not smart; thank God I usually prove them wrong.

Bluearrow:
Very fat lie @bold
Mmf can never perform like stock or equity long term. Definitely not in a country like Nigeria where inflation is running at uncontrollable speed.

Bluearrow:
Very fat lie @bold
Mmf can never perform like stock or equity long term. Definitely not in a country like Nigeria where inflation is running at uncontrollable speed.

I find these contrasting views somehow interesting. But I usually prefer grounding my analysis in concrete numbers.

For instance, suppose Nestle traded at #200 in 2006 and stands at #1,300 in 2026. A #50 million investment made in 2006 would today be worth approximately #325 million (ignoring dividends and bonus issues). That represents a 550% total return, or roughly 9.81% per annum compounded.

By comparison, a MMF delivering a steady effective annual return of 11% over the same 20-year period would have grown the same #50 million into about #403 million…that’s a 706% total return.

So viewing it from the capital appreciation lens alone, a solid MMF will usually outperform an average stock over long periods. Equities’ real edge comes from dividends, especially when reinvested. But these are purely based on management discretions which makes your returns more uncertain….

At the end of the day, the route taken doesn’t matter. The destination is the real deal. Just ensure you don’t build wealth on assumptions, regardless of the path you choose.

Stanbic is now 15%. Abeg which one do you guys recommend.

Neurotika:
I find these contrasting views somehow interesting. But I usually prefer grounding my analysis in concrete numbers.

For instance, suppose Nestle traded at #200 in 2006 and stands at #1,300 in 2026. A #50 million investment made in 2006 would today be worth approximately #325 million (ignoring dividends and bonus issues). That represents a 550% total return, or roughly 9.81% per annum compounded.

By comparison, a MMF delivering a steady effective annual return of 11% over the same 20-year period would have grown the same #50 million into about #403 million…that’s a 706% total return.

So viewing it from the capital appreciation lens alone, a solid MMF will usually outperform an average stock over long periods. Equities’ real edge comes from dividends, especially when reinvested. But these are purely based on management discretions which makes your returns more uncertain….

At the end of the day, the route taken doesn’t matter. The destination is the real deal. Just ensure you don’t build wealth on assumptions, regardless of the path you choose.

Thanks for this. The 11% used in your analysis is even conservative. Also, imagine if you factor in periodic (maybe even monthly) deposits you may be making during that time period.

Longterm, MMF would outperform equity. The short term triumph of equity is just noise if you’re in it for the long term

Neurotika:
I find these contrasting views somehow interesting. But I usually prefer grounding my analysis in concrete numbers.

For instance, suppose Nestle traded at #200 in 2006 and stands at #1,300 in 2026. A #50 million investment made in 2006 would today be worth approximately #325 million (ignoring dividends and bonus issues). That represents a 550% total return, or roughly 9.81% per annum compounded.

By comparison, a MMF delivering a steady effective annual return of 11% over the same 20-year period would have grown the same #50 million into about #403 million…that’s a 706% total return.

So viewing it from the capital appreciation lens alone, a solid MMF will usually outperform an average stock over long periods. Equities’ real edge comes from dividends, especially when reinvested. But these are purely based on management discretions which makes your returns more uncertain….

At the end of the day, the route taken doesn’t matter. The destination is the real deal. Just ensure you don’t build wealth on assumptions, regardless of the path you choose.

Your analogy is wrong
You are using an assumed price that suit your narrative, the price of nestle is not 1300 but around 3k currently & I'm sure the price of nestle wasn't 200 in 2006. There is no way mmf can beat equity or stocks long term. It is just like comparing Nigeria economy to US economy long term. Short term mmf can win, but long term, no way because of inflation. This doesn't mean an investor shouldn't do proper research before investing in stocks, not all stocks are worth investing. But so long one is investing in good stocks, that person will beat mmf long term.

Monday reflection:

1) The amount of money you put in MMF/ Fixed deposits will usually be more than what you put in Equity/ Stocks.

2)Stocks gives more profit however, to play this safely, you put more with equity fund managers and play with lesser( doing it by yourself).

3)15.65% and 16.65% net annual returns are not the same.Even in university, just 1 point can decide for you if you will move up from 2.2 to 2.1 or first class. Over time will show the difference so 18.5% helps you arrive at your financial destination faster( with compounding which you can set a particular sum of money for this while another helps you meet your regular needs).

4)Those who do finger printing and face recognition to access their investment accounts will only limit accessibility to family in case of anything.

5)Allowing the RIGHT family members access your 'intimate financial information' depends on how you arrange yourself and things. Writing details of this in your notebook at personal moments, leaving notes underneath with signature and dates helps a lot.

6) When you start your investment journey ensure you start living responsible and accountable lifestyle( at least for the sake of your children).

7)Wills may not necessarily be written under duress but may be written under INFLUENCE ( manipulation and Brainwashing).

Lawyers are not always what they are in cases of will issues even with the amounts they charge you.

Bluearrow:
Your analogy is wrong
You are using an assumed price that suit your narrative, the price of nestle is not 1300 but around 3k currently & I'm sure the price of nestle wasn't 200 in 2006. There is no way mmf can beat equity or stocks long term. It is just like comparing Nigeria economy to US economy long term. Short term mmf can win, but long term, no way because of inflation. This doesn't mean an investor shouldn't do proper research before investing in stocks, not all stocks are worth investing. But so long one is investing in good stocks, that person will beat mmf long term.

The word "suppose" was put there to signify it’s for illustrative purposes…and I deliberately used a conservative 11% return for the MMF to keep the comparison balanced.

My broader point still stands. Comparing a MMF with one of the market's eventual winners assumes you knew beforehand which stock would become the winner. Hindsight makes that look easy.

Transcorp was long predicted as a growth story in the late 2000s. Zenith was also widely considered in the same breadth. Yet their long-term outcomes have been quite different. You can do your research. The challenge isn't finding a good company; it's knowing which good company will become an exceptional investment over the next 20 years.

That's why comparing a MMF fund to the market's biggest winners isn't an apples to apples comparison. The average stock isn't Nestle, and that's precisely where the real investment risk lies.

Neurotika:
The word "suppose" was put there to signify it’s for illustrative purposes…and I deliberately used a conservative 11% return for the MMF to keep the comparison balanced.

My broader point still stands. Comparing a MMF with one of the market's eventual winners assumes you knew beforehand which stock would become the winner. Hindsight makes that look easy.

Transcorp was long predicted as a growth story in the late 2000s. Zenith was also widely considered in the same breadth. Yet their long-term outcomes have been quite different. You can do your research. The challenge isn't finding a good company; it's knowing which good company will become an exceptional investment over the next 20 years.

That's why comparing a MMF fund to the market's biggest winners isn't an apples to apples comparison. The average stock isn't Nestle, and that's precisely where the real investment risk lies.

You don't even need to select stock or do research, simply put the money in equity, it will still outperform mmf. Unless u just want to argue, anybody grounded in investment knows equity will outperform mmf long term. When an asset is classified as risky or aggressive, just know long term it will outperform a conservative asset, this is just basic investment principle. You arguing this bespeaks u haven't held both risky & conservative asset for long term, anybody that has done both won't even argue. I have done both & I'm telling u risky asset will always outperform conservative asset long term. If at all u want to compare, not in a country like Nigeria were inflation is running around 15% & u have most of the mmf hovering around 15%, that's not investment, u are just battling inflation.

AncestralPowers:
Well said, many people are underestimating the power of long term MMF investment, if you have huge funds in money market fund, with patience and monthly or quarterly compounding, you are definitely going to do well as the best performing stocks/equities out there...

Sir, you forgot to factor in monthly quarters and years when the economy will improve, inflation gets under control, MPR gets cut and the government no longer needs much of investors money, as a result, MMF rates will dip drastically below the double digits interest we see now.

You also forgot to factor in banks lack of need for investors extra cash when CBN improves on banks C.R.R (cash reserve ratio) and CBN loosen it's tight policy on "Standing facility corridor".

When you consider those two alone, you will realize that, you only having this conversation now because Nigeria macros is temporary bad but it will not remain like this forever for MMF to keep earning double digits daily interest. It's only a matter of time.

Enjoy what you can get now.

Neurotika:
I find these contrasting views somehow interesting. But I usually prefer grounding my analysis in concrete numbers.

For instance, suppose Nestle traded at #200 in 2006 and stands at #1,300 in 2026. A #50 million investment made in 2006 would today be worth approximately #325 million (ignoring dividends and bonus issues). That represents a 550% total return, or roughly 9.81% per annum compounded.

By comparison, a MMF delivering a steady effective annual return of 11% over the same 20-year period would have grown the same #50 million into about #403 million…that’s a 706% total return.

So viewing it from the capital appreciation lens alone, a solid MMF will usually outperform an average stock over long periods. Equities’ real edge comes from dividends, especially when reinvested. But these are purely based on management discretions which makes your returns more uncertain….

At the end of the day, the route taken doesn’t matter. The destination is the real deal. Just ensure you don’t build wealth on assumptions, regardless of the path you choose.

you said "By comparison, a MMF delivering a steady effective annual return of 11% over the same 20-year period would have grown the same #50 million into about #403 million…that’s a 706% total return."


This is where your analysis broke down because, Can you even trust that MMF will remain steady at 11% for 2 decades without getting lesser returns, and I know It will swing up past 11% in some years too but this rate isn't steady like it's cracked out to be.

2 decades in typically enough for at least 2 macros economy circles in a country, so running your maths on a steady 11% returns over 20 years is greatly flawn and doesn't hold water at all.

Comparing it to Equities investment is abysmally redundant. I refuse to do such comparison with you, a better comparison should have been long term government BOND.


Just one good large cap company in the stock market with good capex and good dividend paying history will shatter the dream returns of MMF long term.

Bluearrow:
You don't even need to select stock or do research, simply put the money in equity, it will still outperform mmf. Unless u just want to argue, anybody grounded in investment knows equity will outperform mmf long term. When an asset is classified as risky or aggressive, just know long term it will outperform a conservative asset, this is just basic investment principle. You arguing this bespeaks u haven't held both risky & conservative asset for long term, anybody that has done both won't even argue. I have done both & I'm telling u risky asset will always outperform conservative asset long term. If at all u want to compare, not in a country like Nigeria were inflation is running around 15% & u have most of the mmf hovering around 15%, that's not investment, u are just battling inflation.

Nobody is arguing with you. I'm only trying to set the record straight.

The idea that "equities are best for the long term" has become almost gospel here, and I think that's one of the most misleading pieces of investment advice…especially for newbies. You can’t trade equities for long in this clime and talk like that.

Best according to what benchmark? The market's biggest winners or the market itself?

A handful of exceptional stocks have historically driven a disproportionate share of the NGX's long-term performance. The average stock sitting around the middle of the bell curve has often delivered a very different outcome. Why not compare the median NGX stock over a long period with a conservatively compounded 11% money market return and see where the numbers land.

I've invested through enough market cycles to know there isn't a permanently superior asset class. The sensible approach is to stay flexible and move capital to wherever the best risk-adjusted returns exist. Everything else is just ideology.

I’ve said enough…

Has anybody been able to log into the first asset management app of recent....It's been saying "technical difficulties" for a few days

frank417:
Stanbic is now 15%. Abeg which one do you guys recommend.

You could:

1. Keep your money with Stanbic IBTC, regardless of the rate.

2. Move your money to another MMF with better rate. Eg, TrustBanc, Norrenberger etc..

3. Liquidate your MMF and chop all the money.

In case you decide to go with option 3, don't forget to ask for my account number. Cheers!

We love Yakubu, bro.

Beeron:
you said "By comparison, a MMF delivering a steady effective annual return of 11% over the same 20-year period would have grown the same #50 million into about #403 million…that’s a 706% total return."


This is where your analysis broke down because, Can you even trust that MMF will remain steady at 11% for 2 decades without getting lesser returns, and I know It will swing up past 11% in some years too but this rate isn't steady like it's cracked out to be.

2 decades in typically enough for at least 2 macros economy circles in a country, so running your maths on a steady 11% returns over 20 years is greatly flawn and doesn't hold water at all.

Comparing it to Equities investment is abysmally redundant. I refuse to do such comparison with you, a better comparison should have been long term government BOND.


Just one good large cap company in the stock market with good capex and good dividend paying history will shatter the dream returns of MMF long term.

Resolved

Sagaciousd1:
Has anybody been able to log into the first asset management app of recent....It's been saying "technical difficulties" for a few days

Bluearrow:
You don't even need to select stock or do research, simply put the money in equity, it will still outperform mmf. Unless u just want to argue, anybody grounded in investment knows equity will outperform mmf long term. When an asset is classified as risky or aggressive, just know long term it will outperform a conservative asset, this is just basic investment principle. You arguing this bespeaks u haven't held both risky & conservative asset for long term, anybody that has done both won't even argue. I have done both & I'm telling u risky asset will always outperform conservative asset long term. If at all u want to compare, not in a country like Nigeria were inflation is running around 15% & u have most of the mmf hovering around 15%, that's not investment, u are just battling inflation.

I did an analysis a while ago 2008 till date.
Before Tinubu came onboard, MMF was doing better than Equity. Two factors contributed to Equity turning the table:
1 MMF rate was very low during PMB era
2 Equity growth has dwarfed MMF in the last few years due to inflow of funds into equity due to floating of NGN.

Equity funds are spread across many stocks. If one had the foresight to invest in Okomu Oil or Presco rather than Equity fund, MMF to these two stocks is like 1:100. Those two have seen tremendous growth in excess of 2000% in same period

Overall, the difference between Equity fund and MMF is not that much between 2008 and now.

Please i wanted to ask which is better to do in mmf it is saving in Naira or dollar

How much dollar can one get daily or monthly let say 1k dollar

oiganji09:
Please i wanted to ask which is better to do in mmf it is saving in Naira or dollar

How much dollar can one get daily or monthly let say 1k dollar

Naira

oiganji09:
Please i wanted to ask which is better to do in mmf it is saving in Naira or dollar

How much dollar can one get daily or monthly let say 1k dollar

My Opinion/Advice

Having naira and dollar investments is both good. It depends on the investor and the earning currency.

First, I will say if you earn in dollars, and you also sometimes spend in dollars, you can convert 60% to naira, and don't just save the 40% dollar; invest it in a dollar fund for better returns because you don't earn anything if your dollar is saved in a dom account. Then invest the converted 60% in MMF.

If you earn in naira, don't bother getting dollars; invest everything in MMF if you are a conservative investor; otherwise, invest 60% in these equities: Zenith, GTB, Wapco, and Aradel, and 40% in MMF. In another 5 years, you will be happy with yourself.
You can also get in touch if you need further guidance.

Since there has been losses, why cant the Fund Managers (for equity) sell the shares they bought earlier so as to preserve our capital/profits.

Cos it is so foolish for them not to.

I smell a foul play here. (stealing our funds) claiming its the stock market.

They intentionally keep withdrawing our funds, and claim they registered losses.

They claim to be professional fund managers with many years of experience. Will i call them foolish or fraudsters?

investmentvirus:
Since there has been losses, why cant the Fund Managers (for equity) sell the shares they bought earlier so as to preserve our capital/profits.

Cos it is so foolish for them not to.

I smell a foul play here. (stealing our funds) claiming its the stock market.

They intentionally keep withdrawing our funds, and claim they registered losses.

They claim to be professional fund managers with many years of experience. Will i call them foolish or fraudsters?

😂

Are you playing?

What type of playing is this?

yesloaded:
😂

Are you playing?

What type of playing is this?

FUD

😂

Jaay2:
Small yansh dey shake 😏🤪

🤑🤑🤑🤑🤑✌🏾🤡

mank1234:
Welcome back creditalerts.
Continue updating us with the rates.

soon I will ✌🏾🤑

sky404:
pls what is the rate of TRUSTBANC (cowrywise) as at yesterday??

🤑🤑🤑🤑

investmentvirus:
Since there has been losses, why cant the Fund Managers (for equity) sell the shares they bought earlier so as to preserve our capital/profits.

Cos it is so foolish for them not to.

I smell a foul play here. (stealing our funds) claiming its the stock market.

They intentionally keep withdrawing our funds, and claim they registered losses.

They claim to be professional fund managers with many years of experience. Will i call them foolish or fraudsters?

That is why it is important to learn how to trade stocks profitably yourself. That way, you put your financial future in your own hands. If you master the skill and invest only when you are skilled and confident enough, you will most likely earn higher returns than many equity fund managers can deliver each year.

Also, you will not have to doubt or suspect anyone.

investmentvirus:
Since there has been losses, why cant the Fund Managers (for equity) sell the shares they bought earlier so as to preserve our capital/profits.

Cos it is so foolish for them not to.

I smell a foul play here. (stealing our funds) claiming its the stock market.

They intentionally keep withdrawing our funds, and claim they registered losses.

They claim to be professional fund managers with many years of experience. Will i call them foolish or fraudsters?