Best Performing Money Market Funds in Q2 2025

Nigerian money market funds have delivered exceptional returns in Q2 2025, with yields averaging over 21% across the sector. As inflation continues to challenge savers, these professionally-managed funds offer a compelling alternative to traditional savings accounts. 

According to the latest Securities and Exchange Commission (SEC) data for the week ended July 4, 2025, money market funds have maintained their position as Nigeria's most popular investment vehicle, commanding a 45.6% market share of the mutual funds industry. 

Top 10 Performing Money Market Funds in Q2 2025 

Based on year-to-date yields from SEC valuation reports, here are the best-performing money market funds: 

What's Driving Superior Performance? 

The exceptional returns reflect Nigeria's tight monetary policy environment. The Central Bank of Nigeria's aggressive interest rate stance has pushed money market instrument yields higher, directly benefiting fund returns. 

Key Performance Drivers: 

• Monetary Policy Rate: CBN's elevated policy rate has increased returns on treasury bills and short-term government securities 

• Inflation Hedge: With inflation exceeding 30%, these funds provide real value protection 

• Professional Management: Asset managers optimize portfolios across treasury bills, commercial papers, and bank deposits 

• Regulatory Framework: SEC oversight ensures transparency and investor protection 

Size vs Performance Analysis 

Interestingly, fund size doesn't always correlate with top performance. While Stanbic IBTC Money Market Fund remains Nigeria's largest fund at ₦1.5 trillion NAV with 192,628 unitholders, it yielded 20.08% - below the sector's top performers. 

Large Funds (Above ₦100 billion NAV): 

• ARM Money Market Fund: 21.97% yield, ₦221.1 billion 

• FBN Money Market Fund: 21.54% yield, ₦525.5 billion 

• United Capital Money Market Fund: 19.98% yield, ₦139.2 billion 

Smaller Funds Leading Performance: 

• Coronation (₦28.4 billion): 23.74% yield 

• Zedcrest (₦5.9 billion): 23.00% yield 

• Trustbanc (₦5.1 billion): 22.81% yield 

Investment Considerations for Q2 2025 

Advantages: 

• Superior Yields: Average returns of 21%+ significantly outperform savings accounts (typically 5-9%) 

• Liquidity: Easy entry and exit, with some funds offering daily access 

• Low Risk: Investments in high-quality, short-term instruments 

• Professional Management: Expert portfolio optimization 

Key Risks: 

• NDIC Insurance: Unlike bank deposits, money market funds lack NDIC protection 

• Interest Rate Sensitivity: Returns may decline if the CBN reduces policy rates 

• Inflation Risk: Despite high returns, real yields remain challenging 

How to Choose the Right Fund 

When selecting a money market fund, consider: 

1. Performance Consistency Review multi-year track records, not just current yields.
2. Fund Manager Reputation Established managers like Coronation, ARM, and Meristem offer institutional expertise.
3. Minimum Investment Entry requirements vary from ₦5,000 to ₦50,000.
4. Fee Structure Compare management fees and exit charges across providers.
5. Access and Liquidity: Some funds offer daily liquidity while others require notice periods.

Market Outlook 

Nigeria's money market funds sector continues expanding, with total assets under management exceeding ₦2.8 trillion in Q2 2025. The outlook remains positive, supported by: 

• Continued tight monetary policy 

• Growing investor awareness of inflation-beating alternatives 

• Expanding fintech platforms, improving access 

However, investors should monitor potential policy rate adjustments that could impact future returns. 

Getting Started 

Ready to maximize your savings? Use nairaCompare's investment comparison tool to evaluate money market funds based on performance, fees, and minimum investments. 

For comprehensive fixed deposit alternatives, explore our detailed guides on building wealth through professional fund management. 

Bottom Line: Q2 2025's top money market funds delivered exceptional 22-24% returns, offering Nigerian investors professional portfolio management and inflation-beating yields. While risks exist, these funds remain compelling alternatives to traditional savings for wealth preservation and growth.