Nigerian equity mutual funds delivered extraordinary performance in Q2 2025, with top performers generating returns exceeding 90% year-to-date. As the Nigerian Exchange (NGX) advanced 16.57% in the first half, professionally-managed equity funds significantly outperformed the broader market through strategic stock selection and active portfolio management.
According to Securities and Exchange Commission (SEC) data for the week ended July 4, 2025, equity funds collectively manage over ₦50 billion in assets, providing investors with diversified exposure to Nigeria's best-performing companies across multiple sectors.
Based on year-to-date yields from the latest SEC reports, here are Nigeria's highest-performing equity funds:
|
Rank |
Fund Name |
Fund Manager |
YTD Yield |
NAV (₦Million) |
Unitholders |
|
1 |
Halo Equity Fund |
Halo Asset Management |
90.00% |
45.4 |
31 |
|
2 |
Guaranty Trust Equity Income Fund |
Guaranty Trust Fund Managers |
56.21% |
1,200.1 |
667 |
|
3 |
Zrosk Magna Equity Fund |
Zrosk Investment Management |
42.34% |
3,990.0 |
39 |
|
4 |
Paramount Equity Fund |
Chapel Hill Denham Management |
40.66% |
4,293.1 |
8,944 |
|
5 |
ARM Investment Managers |
33.26% |
4,696.7 |
6,763 |
|
|
6 |
Stanbic IBTC Asset Management |
30.61% |
1,163.9 |
24 |
|
|
7 |
Stanbic IBTC Asset Management |
30.56% |
16,897.9 |
17,903 |
|
|
8 |
FBNQuest Asset Management |
29.88% |
1,831.6 |
1,684 |
|
|
9 |
United Capital Asset Management |
25.11% |
4,785.5 |
5,014 |
|
|
10 |
Afrinvest Asset Management |
23.04% |
2,003.6 |
1,689 |
The exceptional equity fund performance reflects robust underlying market conditions and strategic fund management. Nigerian stock market transactions surged to a record ₦2.7 trillion in the first four months of 2025, representing a 43.3% increase from the previous year.
Key Performance Catalysts:
The standout performer, Halo Equity Fund, demonstrates how boutique management can deliver superior returns despite its modest ₦45.4 million NAV and only 31 unitholders. This concentrated approach enables nimble positioning in high-conviction opportunities.
Large Fund Success Stories:
The performance demonstrates that both focused boutique strategies and diversified large-scale approaches can generate exceptional returns in favorable market conditions.
Growth Focus: Top performers like Halo and Zrosk Magna concentrate on high-growth potential stocks, accepting higher volatility for superior returns.
Income Generation: Guaranty Trust Equity Income Fund combines dividend-paying blue-chips with growth opportunities, appealing to income-seeking investors.
Market Beta: Aggressive funds capitalize on market momentum, while balanced approaches offer steadier performance with lower volatility.
Market Volatility: Equity funds experience significant price fluctuations during market downturns.
Concentration Risk: Smaller funds may lack diversification across sectors and individual holdings.
Liquidity Constraints: Some funds may face redemption pressures during market stress periods.
Economic Sensitivity: Performance closely correlates with broader economic conditions and corporate earnings.
Nigeria's equity market fundamentals remain supportive, with inflation moderating to 22.9% by May 2025, providing positive real returns for top-performing funds. Analysts project continued strong performance in H2 2025, supported by banking sector recapitalization, successful listings, and foreign exchange stability.
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Bottom Line: Q2 2025 showcased the power of professional equity fund management, with top performers delivering 23-90% returns. These funds offer Nigerian investors professionally-managed exposure to the country's highest-growth companies and sectors.