Nigeria’s money market mutual fund segment delivered double-digit returns in 2025, supported by elevated interest rates and improved liquidity in the fixed-income market.
Data reviewed by Nairametrics Research shows that leading funds posted year-to-date (YTD) yields ranging between 18% and 24%, reflecting active portfolio management and strategic positioning in high-yield short-term instruments.
By year-end, money market funds delivered YTD yields of 18.71% to 24.32%, sitting about 2.7% to 8.3% points below the 27% Monetary Policy Rate, highlighting the normal gap between benchmark policy rates and actual short-term investment returns.
The performance underscores the continued attractiveness of money market funds for investors seeking relatively stable income in a high-rate environment.
What the data is saying
Money market mutual funds benefited significantly from Nigeria’s tight monetary stance in 2025, which sustained high treasury bill and short-term instrument yields.
The top 10 funds by YTD yield demonstrated great income generation, while also reflecting varying levels of investor participation.
- YTD yields among the top performers ranged from 18.71% to 24.32%.
- Funds combine exposure to treasury bills, commercial papers, and other short-duration securities to optimize returns.
- Investor participation, measured by unitholders, varied widely across the top 10, from fewer than 50 investors to nearly 8,000.
- Competitive yield spreads indicate broad strength across the segment rather than isolated outperformance.
Overall, the data points to a robust year for money market funds amid favorable fixed-income conditions.
Top 10 performing money market mutual funds in 2025
The highest-performing fund delivered a yield above 24%, though it maintained a relatively small investor base.
Rounding out the top ten, First Ally Money Market Fund delivered strong income returns and attracted a solid investor base. Its yield performance highlights effective positioning in Nigeria’s short-term fixed-income market.
- Fund Manager: First Ally Asset Management Limited
- NAV: N4.22bn
- Unitholders: 1,793
