Best Performing Fixed Income Funds in Nigeria Q1 2026

Introduction

Fixed income funds delivered strong performance through 2025, with leading funds reporting annual returns in the mid-to-high teens and, in some cases, above 20% that positioned bonds as genuine inflation-hedging vehicles rather than mere wealth-erosion slowdowns.

As Nigeria's economic environment stabilised in Q4 2025 with inflation showing signs of moderation compared to earlier peaks and the Central Bank maintaining elevated policy rates, fixed income fund managers captured attractive yields from FGN bonds, corporate debt, and treasury instruments while providing significantly lower volatility than equity alternatives.

This ranking evaluates Nigeria's best performing fixed income funds based on 2025 annual performance data, analysing investment strategies, risk management approaches, minimum requirements, and accessibility to help income-focused investors optimise portfolio allocations between safety and returns.

Table of Contents:

• Why Fixed Income Funds Dominated Q4 2025

• Our Methodology

• Top 10 Best Performing Fixed Income Funds

• Fixed Income Strategies Explained

• Decision Framework: Choosing Your Fund

• Real-World Portfolio Construction

• nairaCompare Insight

• FAQs

• Related Resources

• Conclusion

Why Fixed Income Funds Dominated Q4 2025

Nigerian investors faced stark asset allocation choices in Q4 2025. Some equity funds delivered strong year-to-date returns, though with significantly higher volatility but carried extreme volatility requiring strong stomachs and 5+ year horizons. Money market funds provided competitive double-digit return with excellent liquidity but lacked the term premium capture fixed income funds achieved through longer-duration positioning. Regular savings accounts offering 2-5% guaranteed 18-21 percentage point real losses against inflation. Fixed deposits locked capital for specific tenures with early withdrawal penalties.

Fixed income funds strategically bridged these extremes, delivering 17-25% returns through professionally managed bond portfolios that captured yields higher than money markets while maintaining significantly lower volatility than equities. The asset class's appeal intensified as inflation moderated from 26%+ peaks toward 23-24%, making 20%+ fixed income returns genuinely competitive with price growth rather than merely reducing wealth erosion rates.

Our Methodology

We evaluated fixed income funds using verified 2025 performance data:

• Returns Performance (40%): Annual 2025 yields, quarterly consistency, risk-adjusted returns (Sharpe ratio)

• Investment Strategy (25%): Duration management discipline, credit selection quality, yield curve positioning

• Fund Credibility (20%): Assets under management scale, fund manager track record, institutional backing

• Accessibility (10%): Minimum investment requirements, redemption terms, digital platform availability

• Transparency (5%): Reporting frequency, holdings disclosures, fee clarity

All funds are SEC-registered and managed by licensed asset management companies as of Q4 2025.

Top 10 Best Performing Fixed Income Funds

1. Comercio Partners Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 24-25%

• Fund Manager: Comercio Partners Asset Management

• Minimum Investment: ₦100,000

• Redemption: 3-5 business days

• Investment Focus: Active bond selection, FGN + corporate mix

Why It Ranks First:

Comercio Partners Fixed Income Fund achieved exceptional 24-25% annual returns through focused, high-conviction bond positioning that boutique asset managers execute more nimbly than large institutions constrained by benchmark tracking. The fund's smaller scale (approximately 30-50 investors) enables concentration in specialized opportunities including mid-tier corporate bonds offering yield premiums and strategic FGN bond positions timed for yield curve movements unavailable to multi-billion naira funds requiring massive liquid positions.

The boutique structure allows rapid portfolio adjustments responding to market condition changes without operational constraints facing large funds. Comercio's credit research capabilities identify undervalued fixed income securities before broader market recognition, capturing alpha impossible through passive strategies. Active duration management—extending when yields peaked, reducing as rally materialized—added performance versus static duration approaches.

Investment Philosophy:

• High-conviction security selection (concentrated vs diversified)

• Active duration management (tactical vs strategic)

• Corporate credit opportunities (yield pickup focus)

• FGN bond timing (primary + secondary market)

• Boutique advantages (nimble positioning)

Portfolio Construction:

• 60-75% FGN bonds (various maturities)

• 15-25% quality corporate bonds

• 10-15% treasury bills (liquidity management)

• Average duration: 3-5 years (managed tactically)

Strengths:

• Top 2025 performance (24-25% returns)

• Boutique advantages enable specialized positioning

• Active management adding genuine alpha

• Accessible ₦100,000 minimum

• Professional credit research capabilities

• Nimble portfolio adjustments

Considerations:

• Smaller fund size (less track record depth)

• Boutique structure (less household name recognition)

• Active approach means performance variability

• Requires comfort with specialized managers

Best For: Performance-focused investors with ₦100,000+, those comfortable with boutique asset managers delivering alpha through specialization, savers prioritizing returns over brand familiarity, and investors valuing active management over passive indexing.

2. United Capital Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 22-23%

• Fund Manager: United Capital Asset Management

• Assets Under Management: Multi-billion naira fund size

• Minimum Investment: ₦100,000

• Redemption: 3-5 business days

Why It Ranks Second:

United Capital Fixed Income Fund combines exceptional 22-23% performance with substantial ₦32+ billion AUM showing institutional credibility and scale advantages. The fund's size enables access to large FGN bond placements at primary auctions, preferential corporate debt allocations from relationship issuers, and diversification across multiple securities impossible for smaller funds. United Capital's established asset management platform provides research depth, risk management sophistication, and operational reliability.

The performance-scale combination distinguishes United Capital: delivering top-tier returns matching boutique competitors while maintaining institutional stability and liquidity depth reassuring conservative investors. The fund's integrated advisory model (portfolio management + research function) provides macro insights informing fixed income positioning, enabling strategic duration calls and sector rotation enhancing returns beyond security-level selection.

Investment Philosophy:

• Diversified portfolio approach (vs concentrated)

• Institutional research capabilities

• Duration management across yield curve

• Corporate credit selection (investment-grade focus)

• Scale advantages (primary market access)

Portfolio Structure:

• 65-80% FGN bonds (ladder across maturities)

• 10-20% corporate bonds (banks, blue-chips)

• 10-15% money market instruments

• Average duration: 4-6 years

Strengths:

• Strong 2025 returns (22-23%)

• Substantial ₦32+ billion AUM (institutional scale)

• Established asset management platform

• Diversified approach reduces concentration risk

• Primary market access advantages

• Integrated research capabilities

• Operational excellence

Considerations:

• Large fund size limits nimble positioning

• Diversified approach may cap upside vs concentrated bets

• Returns slightly below top boutique performer

Best For: Investors wanting strong performance with institutional backing, those prioritizing fund size and stability, savers with ₦100,000+ seeking established managers, and conservative investors valuing diversification over concentration.

3. ARM Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 20-21%

• Fund Manager: ARM Investment Managers Limited

• Assets Under Management: Substantial (₦1+ trillion across products)

• Minimum Investment: ₦10,000

• Redemption: 3-5 business days

Why It Ranks Third:

ARM Fixed Income Fund delivered solid 20-21% returns backed by ARM Investment Managers' institutional credibility as Nigeria's leading asset manager (managing substantial assets across pension and investment products). The fund benefits from ARM's conservative risk management culture, deep fixed income expertise from pension fund management (requiring bond specialization), and extensive issuer relationships enabling favourable primary market access.

ARM's institutional scale provides research capabilities and treasury management sophistication matching international standards while lower ₦10,000 minimums democratize access to institutional-grade bond management. The fund's approach emphasizes credit quality and duration discipline over aggressive yield-chasing, appealing to conservative investors prioritizing capital preservation alongside income generation.

Investment Approach:

• Conservative risk management (quality focus)

• Credit quality standards (investment-grade bias)

• Duration discipline (controlled interest rate risk)

• Diversified issuer exposure

• Pension fund management expertise applied

Portfolio Composition:

• 70-85% FGN bonds (quality focus)

• 5-15% AAA/AA corporate bonds

• 10-15% treasury bills/money market

• Average duration: 3-4 years (conservative)

Strengths:

• Solid 20-21% returns with lower volatility

• ARM's unmatched institutional credibility

• Conservative risk management culture

• Very accessible ₦10,000 minimum

• Extensive fixed income expertise

• Pension fund management discipline

• Strong operational infrastructure

Considerations:

• Returns below aggressive competitors

• Conservative approach caps upside potential

• Large institutional focus may limit nimbleness

Best For: Conservative investors prioritizing institutional backing, those wanting ARM's reputation and track record, first-time fixed income investors with ₦10,000 minimums, and savers valuing capital preservation alongside income.

4. Stanbic IBTC Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 18-20%

• Fund Manager: Stanbic IBTC Asset Management

• Parent: Standard Bank Group (international backing)

• Minimum Investment: ₦5,000

• Redemption: 2-3 business days

Why It Ranks Fourth:

Stanbic IBTC Fixed Income Fund provides 18-20% returns backed by international Standard Bank Group expertise and tier-1 banking integration. The fund benefits from Stanbic IBTC's extensive government relationships enabling primary bond auction access, banking group treasury management capabilities, and international risk frameworks exceeding purely Nigerian asset managers. The incredibly low ₦5,000 minimum democratizes institutional bond management access.

Standard Bank Group's international presence provides global fixed income best practices, sophisticated duration modelling, and credit research methodologies unavailable to domestic-only managers. The banking integration enables seamless fund movements between savings, fixed deposits, and bond funds, simplifying treasury management for individuals and businesses.

Investment Strategy:

• Tier-1 bank integration advantages

• International risk management frameworks

• Conservative duration positioning

• FGN bond focus (minimal corporate exposure)

• Liquidity emphasis (banking client needs)

Portfolio Mix:

• 75-90% FGN bonds

• 5-10% high-grade corporate bonds

• 5-15% money market/cash

• Average duration: 2-4 years (conservative)

Strengths:

• International banking group backing

• Very accessible ₦5,000 minimum

• Fast 2-3 day redemption

• Tier-1 bank stability and reputation

• Integrated banking services

• Global risk management expertise

• Excellent digital platform (BluNest app)

Considerations:

• Returns moderate vs specialized managers

• Conservative approach limits upside

• Banking focus may prioritize stability over performance

Best For: Risk-averse investors prioritizing tier-1 stability, those wanting ₦5,000 entry points, existing Stanbic IBTC banking customers, and savers valuing international banking group backing over maximum returns.

5. FSDH Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 18-19%

• Fund Manager: FSDH Asset Management Limited

• Parent: FSDH Merchant Bank

• Minimum Investment: ₦50,000

• Redemption: 3-5 business days

Why It Ranks Fifth:

FSDH Fixed Income Fund achieved 18-19% returns leveraging FSDH Merchant Bank's wholesale banking focus and institutional relationships. Merchant banks' specialised nature offers superior treasury management capabilities, extensive fixed income trading desks, and issuer relationships enabling favourable bond allocations unavailable to retail-focused banks. FSDH's credit research capabilities—honed through corporate lending—inform corporate bond selections adding yield pickup over pure government portfolios.

The fund's product suite includes Halal and dollar-denominated options demonstrating responsiveness to diverse investor needs. FSDH's domestic market focus enables identifying opportunities larger international managers overlook while maintaining merchant bank sophistication exceeding purely retail asset managers.

Investment Philosophy:

• Merchant bank treasury expertise

• Active credit research (lending background)

• Corporate bond opportunities (yield pickup)

• Domestic market specialization

• Quality-focused selection

Portfolio Structure:

• 65-75% FGN bonds

• 15-25% quality corporate bonds

• 10-15% money market instruments

• Average duration: 3-5 years

Strengths:

• Solid 18-19% performance

• Merchant bank sophistication

• Strong credit research capabilities

• Corporate bond expertise (lending background)

• Domestic market focus

• Responsive to investor needs (Halal options)

• Established institutional reputation

Considerations:

• Returns below top performers

• Merchant bank structure less familiar to retail

• ₦50,000 minimum higher than some competitors

Best For: Business owners familiar with merchant banking, investors seeking corporate bond exposure, those wanting ₦50,000-₦500,000 allocations, and savers prioritizing credit research capabilities.

Invest Now

6. FBNQuest Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 17-18%

• Fund Manager: FBNQuest Asset Management

• Parent: First Bank Group

• Minimum Investment: ₦10,000

• Redemption: 3-5 business days

Why It Ranks Sixth:

FBNQuest Fixed Income Fund provides 17-18% returns backed by First Bank Group's 130-year banking heritage and extensive government relationships. The fund benefits from FBNQuest's visible research team, regular factsheet publications showing transparency, and banking group intelligence offering market insights. Low ₦10,000 minimums reflect mass retail focus while institutional desks handle large mandates.

FirstBank's nationwide presence and deep community roots provide issuer relationships and market intelligence advantages. The combination of retail accessibility and institutional capabilities distinguishes FBNQuest's market positioning.

Investment Approach:

• Banking group research capabilities

• Regular transparency (factsheets)

• Retail and institutional dual focus

• FGN bond emphasis

• Conservative credit standards

Portfolio Allocation:

• 75-85% FGN bonds

• 5-10% investment-grade corporates

• 10-15% money market

• Average duration: 3-4 years

Strengths:

• FirstBank Group 130-year heritage

• Accessible ₦10,000 minimum

• Strong transparency (regular factsheets)

• Banking group intelligence

• Dual retail + institutional focus

• Conservative risk approach

• Extensive branch network

Considerations:

• Returns moderate vs aggressive managers

• Large banking group structure limits nimbleness

• Conservative approach caps upside

Best For: FirstBank customers wanting integrated services, investors prioritizing 130-year banking heritage, those with ₦10,000-₦100,000 capital, and savers valuing transparency through regular reporting.

7. Meristem Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 16-17%

• Fund Manager: Meristem Securities Limited

• Assets Under Management: Growing portfolio

• Minimum Investment: ₦25,000

• Redemption: 3-5 business days

Why It Ranks Seventh:

Meristem Fixed Income Fund delivered 16-17% returns through active fixed income management by Meristem's specialized investment team. The independent investment house focus (non-bank affiliated) enables objective security selection without banking group conflicts, attracting investors wanting pure asset management without commercial banking entanglements. Meristem's research-driven approach emphasizes fundamental analysis over relationship-based allocation.

The fund's positioning appeals to sophisticated investors wanting independent managers with alignment to performance rather than banking group strategic priorities. Meristem's growing track record shows capability building in fixed income despite being known historically for equity research.

Investment Philosophy:

• Independent asset management (non-bank)

• Research-driven security selection

• Active management approach

• Diversified fixed income exposure

• Performance-focused culture

Portfolio Composition:

• 70-80% FGN bonds

• 10-15% select corporate bonds

• 10-15% money market

• Average duration: 3-4 years

Strengths:

• Independent management (no banking conflicts)

• Research-driven approach

• Growing fixed income capabilities

• ₦25,000 accessible minimum

• Performance-focused culture

• Active management philosophy

Considerations:

• Returns below category leaders

• Growing but less established fixed income track record

• Smaller scale vs large banking groups

Best For: Investors wanting independent asset managers, those prioritizing research-driven approaches, savers with ₦25,000-₦250,000 allocations, and investors valuing non-bank affiliated management.

8. Zenith Bank Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 15-16%

• Fund Manager: Zenith Bank Asset Management (via partnerships)

• Parent: Zenith Bank (tier-1)

• Minimum Investment: ₦50,000

• Redemption: 3-5 business days

Why It Ranks Eighth:

Zenith Bank Fixed Income Fund provides 15-16% returns backed by Africa's largest bank by market capitalization and Zenith's strong balance sheet providing ultimate stability. The fund benefits from Zenith's extensive branch network enabling convenient access, banking integration simplifying treasury management, and tier-1 reputation attracting ultra-conservative investors prioritizing security over maximum returns.

Zenith's massive scale and consistent profitability provide psychological comfort worth foregoing 5-8 percentage points of returns versus aggressive managers for risk-averse savers viewing bonds as emergency fund enhancements rather than aggressive growth vehicles.

Investment Strategy:

• Tier-1 bank conservative approach

• Capital preservation priority

• FGN bond focus (minimal risk)

• Liquidity emphasis

• Banking customer convenience

Portfolio Mix:

• 80-90% FGN bonds

• 5-10% money market

• 0-5% highest-grade corporate only

• Average duration: 2-3 years (very conservative)

Strengths:

• Africa's largest bank backing

• Maximum institutional stability

• Extensive branch network

• Banking integration benefits

• Ultra-conservative risk approach

• Brand strength and recognition

Considerations:

• Returns significantly below category leaders

• Ultra-conservative approach sacrifices yield

• Large bank structure limits flexibility

Best For: Ultra-conservative investors prioritizing absolute security, existing Zenith customers wanting integrated services, risk-averse savers uncomfortable with specialized managers, and those valuing brand strength over returns optimization.

9. Guaranty Trust Asset Managers Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 14-15%

• Fund Manager: GT Pension Fund Managers/GTCO Fund Managers

• Parent: GT Holding Company

• Minimum Investment: ₦50,000

• Redemption: 3-5 business days

Why It Ranks Ninth:

GTBank Fixed Income Fund delivers 14-15% returns backed by Nigeria's most profitable bank's unmatched financial soundness and customer service excellence. While returns lag specialized providers, GTBank's brand reputation, digital banking leadership, and consistent profitability appeal to ultra-conservative savers viewing fixed income as absolute safety priority rather than yield maximization vehicle.

GTBank's superior digital platforms and customer service provide convenience and reliability worth accepting moderate returns for investors prioritizing experience quality over percentage-point optimization.

Investment Philosophy:

• Nigeria's most profitable bank backing

• Maximum capital preservation

• Minimal risk tolerance

• FGN bond exclusive focus

• Customer service excellence

Portfolio Structure:

• 85-95% FGN bonds

• 5-15% treasury bills

• 0% corporate bonds (risk avoidance)

• Average duration: 2-3 years (minimal)

Strengths:

• Nigeria's most profitable bank

• Unmatched brand reputation

• Superior customer service

• Leading digital banking platforms

• Maximum financial stability

• Conservative risk approach

Considerations:

• Returns lowest in ranking (14-15%)

• Ultra-conservative approach limits yield significantly

• Sacrifices 8-10 percentage points vs category leaders

Best For: Ultra-conservative savers prioritizing GTBank's reputation above all else, existing GT customers wanting seamless integration, risk-averse investors accepting significant yield sacrifice for brand comfort, and those viewing bonds as absolute safety vehicles.

10. Access Bank Fixed Income Fund

Quick Stats:

• 2025 Annual Yield: Approximately 14-15%

• Fund Manager: Access Pensions/related entities

• Parent: Access Holdings

• Minimum Investment: ₦50,000

• Redemption: 3-5 business days

Why It Ranks Tenth:

Access Bank Fixed Income Fund provides 14-15% returns backed by Access Holdings' extensive branch network and business banking capabilities. The fund benefits from Access's SME and corporate focus translating to business-friendly structures, bulk deposit accommodations, and treasury management advisory. Access's pan-African presence shows institutional strength.

For business owners managing working capital or seasonal reserves, Access's business banking integration and relationship management surpass pure digital providers lacking corporate sophistication, justifying moderate returns through service value-add.

Investment Approach:

• Business banking focus

• Corporate treasury services

• Conservative bond selection

• FGN bond emphasis

• Relationship management for large deposits

Portfolio Allocation:

• 80-90% FGN bonds

• 5-10% money market

• 0-5% corporate (select)

• Average duration: 2-3 years

Strengths:

• Extensive branch network (Nigeria's largest)

• Business banking expertise

• Corporate treasury management

• Pan-African institutional presence

• Relationship management for bulk deposits

• Business-friendly structures

Considerations:

• Returns moderate (14-15%)

• Conservative approach limits yields

• Large bank structure reduces flexibility

Best For: Business owners needing treasury management, corporate clients with substantial working capital, existing Access customers, and those prioritizing extensive branch access over maximum returns.

Invest Now

Fixed Income Strategies Explained

Duration Management: Fund managers adjust portfolio duration (interest rate sensitivity) based on yield curve expectations. Lengthening duration when rates peak captures capital gains as bonds rally; shortening before rate hikes limits losses. Active duration management distinguishes top performers from passive approaches.

Credit Selection: Choosing between 100% FGN bonds (zero credit risk) versus adding corporate bonds (yield pickup with credit risk) significantly impacts returns and volatility. Top funds add 15-25% quality corporate exposure (banks, blue-chips) for 150-300 basis point yield premium justified by credit fundamentals.

Yield Curve Positioning: Investing across short (1-3 years), medium (3-7 years), and long (7-15+ years) maturities capture different risk-return profiles. Steeper curves reward longer duration; flatter curves favour shorter positioning. Strategic managers adjust constantly.

Primary vs Secondary Market: Accessing DMO primary bond auctions provides favourable pricing unavailable in secondary trading. Large funds with DMO relationships gain advantages; smaller funds rely on secondary market purchases at potentially worse prices.

Decision Framework: Choosing Your Fund

Choose Comercio Partners if you: Want maximum performance (24-25%), accept boutique managers, have ₦100,000+, prioritize alpha over brand names

Choose United Capital if you: Want strong returns (22-23%) with institutional backing, value ₦32+ billion AUM scale, have ₦100,000+, prefer diversified approaches

Choose ARM if you: Prioritize institutional credibility above maximum returns, want ARM's pension fund management expertise, have ₦10,000+, value conservative risk culture

Choose Stanbic IBTC if you: Want international banking group backing, need ₦5,000 entry point, value tier-1 stability, prioritize fast redemption (2-3 days)

Choose FSDH if you: Value merchant bank sophistication, want corporate bond exposure, have ₦50,000+, prioritize credit research capabilities

Choose FBNQuest if you: Are FirstBank customer, value 130-year heritage, want regular transparency (factsheets), have ₦10,000+

Choose Meristem if you: Want independent asset management (non-bank), value research-driven approaches, have ₦25,000+, prioritize objective selection

Choose Zenith if you: Prioritize Africa's largest bank backing above returns, value extensive branches, accept 15-16% for maximum stability

Choose GTBank if you: Want Nigeria's most profitable bank, prioritize brand reputation absolutely, accept 14-15% for psychological comfort

Choose Access if you: Are business owner needing treasury services, value extensive network, want corporate banking integration

nairaCompare Insight

For First-Time Fixed Income Investors, the 14-25% return range across funds requires understanding that higher yields correlate with management approaches rather than dramatically different risks— all invest primarily in FGN bonds and other fixed income instruments regulated under SEC guidelines. Conservatism should prioritize SEC regulation (which all own) and FGN bond backing, not legacy names costing 10 percentage points of returns.

For Sophisticated Portfolio Builders, fixed income funds enable strategic asset allocation impossible through direct bond purchases. A portfolio like 30% equity funds (targeting 40-60% returns), 50% fixed income funds (20-24% returns), 20% money market (21-22% returns) provides growth potential with volatility management and liquidity laddering. Fixed income's 20-24% returns with 40-60% lower volatility than equities create efficient frontier positioning: capturing meaningful inflation-beating performance without equity funds' stomach-churning swings. Rebalance quarterly, taking equity profits into fixed income during rallies and vice versa during corrections.

FAQs

What are fixed income funds?

Fixed income funds invest in bonds (FGN, corporate), treasury bills, and fixed-return securities. Fund managers construct diversified portfolios across issuers and maturities, providing professional bond management unavailable through direct purchases.

How do fixed income funds differ from money market funds?

Fixed income funds invest in longer-maturity bonds (1-10+ years) capturing term premiums for higher returns (17-25%) with slightly more volatility. Money market funds invest in very short-term instruments (under 1 year) offering liquidity (1-2 day redemption) with lower returns (20-22%).

Are fixed income funds safe?

Fixed income funds carry lower risk than equity funds but aren't NDIC-insured like bank deposits. Primary risks: interest rate changes affecting bond prices, credit risk if holding corporate bonds, inflation eroding real returns. All ranked funds are SEC-regulated.

What's the minimum investment needed?

Minimums vary: ₦5,000 (Stanbic IBTC), ₦10,000 (ARM, FBNQuest), ₦25,000 (Meristem), ₦50,000 (FSDH, Zenith, GTBank, Access), ₦100,000 (Comercio, United Capital). Lower minimums democratize access to professional bond management.

How long should I invest in fixed income funds?

Minimum 1 year recommended as bond price fluctuations smooth over time. Ideal 2-3 years allows capturing full coupon income and manager alpha. Can redeem earlier (3-5 days' notice) but short-term volatility may reduce returns.

How are fixed income fund returns taxed?

Interest income faces 10% withholding tax automatically deducted. Capital gains from bond price appreciation currently not taxed. Tax treatment may change—consult tax advisors for current rules.

Conclusion

Nigerian fixed income funds delivered compelling 2025 performance with leading providers achieving 17-25% returns that genuinely competed with inflation rather than merely reducing wealth erosion rates. The funds in this ranking combine SEC regulation, professional bond management, and accessible minimums providing reliable paths to income generation and capital preservation impossible through regular savings accounts or direct bond purchases.

Whether choosing Comercio Partners' category-leading 24-25% performance, United Capital's institutional scale with strong returns, ARM's conservative credibility, tier-1 banks' maximum stability, or specialized managers' focused approaches, match selections to your actual return requirements, risk tolerance, and liquidity needs rather than defaulting to familiar brand names costing 10 percentage points of annual returns.

Fixed income fund returns reflect 2025 annual performance and may not repeat in future periods. Past returns don't guarantee future results. All funds carry risks including interest rate risk, credit risk if holding corporate bonds, and inflation risk. Fixed income funds aren't NDIC-insured though underlying FGN bonds carry government backing. Redemption typically requires 3-5 days' notice. Returns subject to 10% withholding tax. This content doesn't constitute investment advice.