Leading Funds Post Double-Digit Yields
Money market funds in Nigeria continued to deliver strong returns in July 2026, with the top performers posting annualized yields above 22%, according to the latest data compiled by Nairametrics. The report highlights that these funds remain a popular choice for investors seeking low-risk, short-term income.
Top Performers in July 2026
The best-performing fund was Stanbic IBTC Money Market Fund, which recorded a yield of 22.5% for the month. Following closely were ARM Money Market Fund and FBNQuest Money Market Fund, with returns of 22.3% and 22.1%, respectively.
Other notable funds included United Capital Money Market Fund at 21.9%, Fidelity Money Market Fund at 21.7%, and AXA Mansard Money Market Fund at 21.5%. The report also noted that Stanbic IBTC Dollar Fund and ARM Dollar Fund provided yields of 5.2% and 5.0% in dollar terms, respectively.
Why Money Market Funds Are Attractive
Money market funds invest in short-term instruments such as treasury bills, commercial papers, and bank placements. They are generally considered low-risk and offer higher liquidity compared to other investment vehicles. According to Nairametrics, these funds have become increasingly popular among Nigerian investors as a way to preserve capital while earning competitive returns.
The Central Bank of Nigeria's monetary policy rate stood at 27.5% during the period, which has influenced yields in the fixed-income space. The report explains that elevated interest rates have boosted returns for money market funds, making them an attractive option for both retail and institutional investors.
Performance Comparison and Outlook
Nairametrics compared the performance of over 30 money market funds tracked by the Securities and Exchange Commission (SEC). The average return for the category was approximately 20.8%, with the top quartile exceeding 21.5%. The bottom quartile still managed to deliver returns above 18%, highlighting the overall strength of the sector.
Looking ahead, analysts expect yields to remain elevated as long as the central bank maintains its tight monetary stance. However, investors are advised to consider factors such as fund management fees, minimum investment amounts, and redemption terms when choosing a fund. The full list of funds and their returns is available on the Nairametrics website.
