Mutual Funds in Nigeria & How to Invest and Grow your Profit

Mutual Funds in Nigeria & How to Invest and Grow your Profit

We’ll talk only on Mutual Funds, and how you can invest in them. In mutual funds, you can invest and build your wealth since it’s recommended by Securities and Exchange Commission (SEC).

Currently, people are now afraid to invest with any online company due to fear of fraud and scams. It’s been so clear that people do loose their hard earned money to fraudsters online who claim to help them grow their capital and make some Return Of Investment (ROI).

However, this brief article is to educate you about Mutual Funds and investment in Nigeria.

Mutual Funds in Nigeria

Mutual funds are investors money that are managed by an individual or group of people who owns a company. They invest your money for the sole purpose of investing in shares, bonds, treasury bills and others which are known for portfolio of investments.

Types of Mutual Funds

  1. Open-Ended Funds

An open-ended funds does not have a limit on the number of shares that can be issued by fund. Open funds are mostly unregulated and are not traded on the floor of the stock exchange.

2. Close-Ended Funds

Close-ended funds has a set number of shares. They are regulated by the Securities and  Exchange Commission (SEC) as well as the NSE. So Close-ended funds play by the rules set by the regulated authorities. Their share price is also published daily on the pages of news papers and can also be found on the internet.

Operation of Mutual Funds

Mutual funds are operated by professional investment firms made up of people who are money and capital market savvy. Mutual funds in Nigeria are operated by the investment arm of banks, stock brokerage firms, investment banks and others.

How to Invest

One can invest in Mutual Funds through the SEC websites. So investing there will really go along way because they will collectively invest your money in Shares, bonds, stocks market, treasury bills and so on.

However this opportunity will always build your wealth and grow your money.