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A Money Market Mutual Fund is a type of investment fund that pools money from multiple investors and invests in short-term, low-risk financial instruments such as Treasury Bills, fixed deposits, commercial papers, and government bonds. These funds are managed by professional asset managers who ensure that the investments remain liquid and generate steady returns.
Money Market Mutual Funds are regulated by the Securities and Exchange Commission (SEC) Nigeria, ensuring transparency and investor protection. Unlike fixed deposits, which have locked-in interest rates, money market funds offer variable returns that fluctuate based on market conditions.
Benefits of Money Market Mutual Funds
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Low Risk: Investments are made in highly secure financial instruments.
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Liquidity: Investors can withdraw funds relatively easily.
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Steady Returns: Offers better interest rates than traditional savings accounts.
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Professional Management: Experts handle investments to maximize returns.
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Diversification: Funds are spread across multiple assets to reduce risk.
Best 12 Money Market Mutual Funds in Nigeria (2025)
Based on recent data, here are some of the top-performing money market mutual funds in Nigeria:
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Legacy Money Market Fund – 25.15% Year-to-Date Return
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Minimum Investment: 1,000 units
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Investment Type: Treasury Bills, Fixed Deposits
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Benefits: Competitive rates, flexible withdrawals
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Meristem Money Market Fund – 24.13% Year-to-Date Return
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Minimum Investment: ₦5,000
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Investment Type: Government securities, bank placements
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Benefits: High liquidity, quick withdrawals
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Anchoria Money Market Fund – 23.69% Year-to-Date Return
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Minimum Investment: ₦5,000
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Investment Type: Treasury Bills, low-risk investments
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Benefits: Start small, add more anytime
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Chapel Hill Denham Money Market Fund – 23.63% Year-to-Date Return
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Minimum Investment: ₦5,000
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Investment Type: Short-term investments
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Benefits: Quarterly interest payments, flexible entry/exit
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Zedcrest Money Market Fund – 23.33% Year-to-Date Return
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Minimum Investment: ₦1,000
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Investment Type: Short-term naira debt instruments
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Benefits: Stable returns, low-risk investments
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AIICO Money Market Fund – 14.24% Yield
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Minimum Investment: ₦10,000
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Investment Type: Treasury Bills, fixed deposits, commercial papers
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Benefits: Strong credit rating, diversified portfolio
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ARM Money Market Fund – 10.52% Yield
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Minimum Investment: ₦1,000
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Investment Type: Government securities, money market instruments
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Benefits: Secure investments, steady returns
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AXA Mansard Money Market Fund – 11.66% Yield
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Minimum Investment: ₦2,000
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Investment Type: Fixed deposits, treasury bills, commercial papers
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Benefits: Flexible investment options
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Chapel Hill Denham Money Market Fund – 10.38% Yield
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Minimum Investment: ₦5,000
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Investment Type: Short-term financial instruments
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Benefits: Reliable returns, professional management
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Stanbic IBTC Money Market Fund – Competitive Yield
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Minimum Investment: ₦5,000
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Investment Type: Treasury Bills, fixed deposits
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Benefits: Strong reputation, stable returns
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FBN Money Market Fund – Competitive Yield
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Minimum Investment: ₦5,000
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Investment Type: Government securities, fixed deposits
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Benefits: Trusted brand, secure investments
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United Capital Money Market Fund – Competitive Yield
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Minimum Investment: ₦10,000
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Investment Type: Treasury Bills, commercial papers
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Benefits: High liquidity, strong management
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How to Invest in Money Market Mutual Funds
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Choose a Fund: Research and select a fund that aligns with your financial goals.
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Open an Account: Register with the fund manager or investment platform.
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Deposit Funds: Transfer the minimum required investment amount.
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Monitor Returns: Track your earnings and reinvest profits if desired.
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Withdraw When Needed: Enjoy liquidity and access to your funds.
Final Thoughts
Money Market Mutual Funds are an excellent way to grow your savings while minimizing risk. Whether you’re a beginner or an experienced investor, these funds offer steady returns, professional management, and high liquidity. If you’re looking for a low-risk investment option in Nigeria, these funds could be a great choice.
