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Investment in mutual funds hits N152bn

By on January 28, 2015

The President, Fund Managers Association of Nigeria, Mr. Michael Adebola, on Monday disclosed that N152bn had so far been invested by Nigerians in mutual funds.

Adebola stated this when he led members of the FMAN to a meeting with the Acting Director-General of the Securities and Exchange Commission, Mr. Mounir Gwarzo, in Abuja.

A mutual fund is a professionally managed investment scheme that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, other securities or assets, or some combination of these investments.

The objective of the fund is to help investors diversify their investments and minimise risks.

Adebola said there was a need for the regulators to create more awareness about mutual funds, adding that enlightenment would assist to boost the industry.

He promised that the association would work with the commission on the enlightenment of the investing public, which would translate into a bigger fund market in the country.

The FMAN president said currently, there were 52 of such mutual funds invested in 10 different sectors, with the largest being the equity based ones, which presently stood at 45.

Adebola said between 2008 and 2009, about N19bn was invested in mutual funds, noting that as of last week, the figure had grown to N152bn.

He said, “We have 52 funds in 10 different sectors, with the largest being the equity-based ones, which presently stand at 45. Between 2008 and 2009, all we had invested in funds was about N19bn, but as of last week, we had N152bn.”

Also speaking, the acting SEC DG explained that one of the strategies of the new management of the commission was to embark on huge public enlightenment programmes with other stakeholders to educate the investing public.

Gwarzo said, “Fund management is close to our heart as it is directly under our purview. In dealing with others, we partner with other self-regulatory organisations. We will collaborate with you anytime we want to commence the enlightenment through the use of town hall meetings and radio jingles, among others.