If you’re looking to invest, mutual funds are a great investment option for diversifying your assets while minimising risks. A mutual fund is an investment vehicle that allows you, an investor, to combine your money with that of other investors seeking a similar investment outcome, and have a professional investment manager use their skills to manage the money to achieve that stated outcome. The investment manager invests in various instruments such as cash, treasury bills, bonds, equity, real estate, etc.
Features of High-Performing Mutual Funds
From impressive performance history to a solid investment strategy, high-performing mutual funds have a few things in common. These characteristics are important and can help you identify the right mutual fund to invest in.
1. Low Fees or Expenses: basic operating expenses and additional fees of a mutual fund should not be expensive.
2. Good Performance: the price and performance of a mutual fund must be stable and consistent over the years.
3. Solid Fund Management & Investment Strategy: mutual fund must be managed by seasoned Fund Managers who leverage a proven strategy in selecting assets to invest in the fund.
4. Reputable Company: the mutual fund should be backed by a reputable institution with years of experience in the Nigerian capital market.
Investing in a mutual fund is easy and rewarding and by learning more about them, a new investor is able to take the first step towards reaching their financial goals. At FBNQuest Asset Management, we offer open-ended mutual funds to assist our investors in reaching their short, medium and long-term investment goals.
1. FBN Money Market Fund
For Short Term Investors
Number one on our list is the FBN Money Market Fund. This fund invests in a diverse range of low-risk money market instruments including commercial papers, treasury bills, bankers acceptance and bank tenured deposits.
FBN Money Market requires a minimum starting investment of N5,000 and is an excellent choice for short to medium-term financial goals with low risk. The FBN Money Market Fund yield as of September 2022, was 11.00%.*
2. FBN Halal Fund
For Ethical Investors
This mutual fund is designed to serve the investment needs of Shari’ah-compliant investors. The Fund invests broadly
in a diversified portfolio of asset-backed investments such as Sovereign Sukuk, Corporate Sukuk, Ijarah (Lease), Murabaha (Cost plus mark-up), Musharaka (Partnership) and Mudarabah (Working Partner) contracts. It also offers competitive returns equivalent to their conventional fund counterparts.
FBN Halal Fund requires a starting investment of N5,000 and is great for long-term income generation. The FBN Halal Fund yield as of September 2022, was 11.47%.*
3. FBN Bond Fund
For Stable Income
The FBN Bond Fund provides access to a diverse portfolio consisting of high-quality fixed income securities including government and corporate bonds, bank tenured deposits and treasury bills. Investing in the FBN Bond Fund requires a minimum of N50,000 with annual dividends paid to the Investor. The fund is a good low-to-medium-risk investment option and is an excellent choice for medium to long-term investing objectives.
The FBN Bond Fund yield as of September 2022, was 11.48%.*
4. FBN Dollar Fund
For Income Growth
The FBN Dollar Fund is the first US dollar mutual fund in Nigeria that enables you to generate revenue in dollars. This Fund invests in a portfolio of USD-denominated debt instruments that are issued by the Nigerian government and reputable corporate institutions. The minimum investment amount is $1,000 for individuals and $100,000 for institutions.
This fund is a great choice for investors seeking currency alternatives and has a higher interest rate than a normal US dollar domiciliary bank account.
The FBN Dollar Fund yield as of September 2022, was 6.26%.*
5. FBN Balanced Fund
For Long-term Rewards
This fund is an excellent long-term investment option as it minimises investment risk by spreading the risk across a variety of asset classes. The FBN Balanced Fund invests in equities, bonds, money market instruments, real estate and other securities in the capital market.
The starting investment sum for this fund is N50,000 with dividend payments made annually. This fund is recommended for investors who are looking for a medium-risk investment solution that offers long-term capital growth and competitive returns.
You can see more reports on the performance history of these high-performing funds, by visiting https://fbnquest.com/asset-management/resources/historical-factsheets/. To read more on FBN Mutual Funds visit – fbnquest.com/asset-management/solutions/mutual-funds/