Keeping money in a regular savings account is like stuffing cash under your mattress — it feels safe, but it barely grows.
But in 2025, more Nigerians are cashing in on a smarter way to grow their money, earning up to 25% returns per year through Money Market Mutual Funds. If you’ve been looking for a low-risk way to make your savings work harder, these funds might be your best bet.
What exactly is a Money Market Mutual Fund?
Think of it like this:
- Money Market: A large-scale financial marketplace where banks, governments, and companies lend and borrow short-term funds at specified interest rates.
- Mutual Fund: A system where people pool money together, and professionals invest it for them.
- Money Market Mutual Fund: Professionals pool money from various investors to put in short-term, low-risk assets like government securities and high-quality corporate debt.
These funds are typically managed by Asset Management Companies (AMCs) and banks’ investment divisions. Their job is to:
- Pool money from different investors.
- Invest in low-risk, short-term assets.
- Handle the complexities of investing for you and pay you steady returns.
Money market funds, also called money market mutual funds, are insured by the Securities and Exchange Commission (SEC) Nigeria. They are intended to offer investors high liquidity with a very low level of risk.
Unlike fixed deposits, where interest rates are locked in, money market funds have variable returns that change based on market conditions.
So, what are the best money market funds in Nigeria right now?
The Top 10 Money-Making Market Funds in Nigeria (February 2025)
Based on February 14, 2025, data from the SEC Nigeria, here are the top-performing money market funds:
To help you understand potential earnings, we’ve broken down how much ₦100,000 could have grown in just 45 days and projected year-end returns.
1. Legacy Money Market Fund (25.15% Year-to-Date Return)
Individuals who invested ₦100,000 in the Legacy Money Market Fund at the start of 2025 would have earned approximately ₦3,101 in just 45 days (by February 14, 2025). Based on the current annual return rate of 25.15%, the money could grow to ₦125,150 within a year.
- Minimum investment: At least 1,000 units at the current market price.
- Where your money goes: Short-term, low-risk financial assets like treasury bills and fixed deposits with a minimum 30-day holding period.
- Key Benefits: Competitive interest rates, flexible entry and exit, the option to reinvest or withdraw returns, and capital protection with stable income.
2. Meristem Money Market Fund (24.13% Year-to-Date Return)
By February 14, an investor who put ₦100,000 in the Meristem Money Market Fund would have earned about ₦2,975. If this return rate of 24.13% holds steady, the total investment could grow to ₦124,130 in 12 months.
- Where your money goes: Government securities, bank placements, and commercial papers.
- Key benefit: Easy access to your money when needed.
3. Anchoria Money Market Fund (23.69% Year-to-Date Return)
Had you started 2025 with a ₦100,000 investment in the Anchoria Money Market Fund, you would have gained around ₦2,921 by mid-February. At its current 23.69% annual return rate, this could compound into ₦123,690 over the course of a year.
- Minimum investment: ₦5,000
- Where your money goes: Treasury Bills and other safe government-backed investments.
- Key benefit: You can start small and add more money anytime.
4. Chapel Hill Denham Money Market Fund (23.63% Year-to-Date Return)
An investment of ₦100,000 in the Chapel Hill Denham Money Market Fund on January 1, 2025, would have generated approximately ₦2,914 by February 14. At an annual return rate of 23.63%, your money could reach ₦123,630 by the end of the year.
- Minimum investment: ₦5,000
- Where your money goes: A mix of safe, short-term investments.
- Key benefits: Quarterly interest payments, easy entry and exit, and capital preservation.
5. Zedcrest Money Market Fund (23.33% Year-to-Date Return)
By mid-February 2025, ₦100,000 invested in Zedcrest Money Market Fund at the beginning of the year would have grown by ₦2,877. If the 23.33% return rate remains consistent, your investment could increase to ₦123,330 by year-end.
- Minimum investment: ₦1,000
- Where your money goes: Short-term naira-denominated debt instruments.
- Key benefits: Stable income, capital appreciation, and professional management for portfolio diversification.
6. AIICO Money Market Fund (23.18% Year-Date Return)
If you started 2025 with ₦100,000 in the AIICO Money Market Fund, you would have earned approximately ₦2,858 by February 14. At an annual return rate of 23.18%, your investment could reach ₦123,180 by the end of 2025.
- Minimum Investment: ₦10,000
- Where your money goes: Invested in high-quality, short-term money market securities, including treasury bills, commercial papers, and fixed deposits.
- Key benefits: Capital preservation, competitive returns, portfolio diversification, online access, ease of entry and exit, and quarterly interest payments.
7. EDC Money Market Fund Class B (23.00% Year-to-Date Return)
By February 14, 2025, an investor who put ₦100,000 in the EDC Money Market Fund at the start of the year would have earned ₦2,836 in returns. If the 23% annual return rate remains steady, the total investment could grow to ₦123,000 by the end of the year.
- Where your money goes: Short-term debt securities, bank placements, bonds, and commercial papers.
- Key benefits: Quarterly interest payments, easy entry and exit, and capital preservation.
8. RMB Nigeria Money Market Fund (22.91% Year-to-Date Return)
An investment of ₦100,000 in RMB Nigeria Money Market Fund from January 1, 2025, would have generated ₦2,825 in 45 days. At an annual return of 22.91%, your money could reach ₦122,910 within a year.
- Where your money goes: Short-term government and corporate securities with a maximum tenor of 365 days and a 90-day average maturity.
- Key benefit: Designed for steady, low-risk returns.
9. FSDH Coral Money Market Fund (22.88% Year-to-Date Return)
By mid-February, an initial ₦100,000 investment in the FSDH Coral Money Market Fund would have earned ₦2,821. At the 22.88% annual return rate, this investment could grow to ₦122,880 in December 2025.
- Minimum Investment: ₦5,000
- Where your money goes: Short-term securities with a maximum 1-year tenor.
- Key benefit: Withdraw within 24 hours and top up anytime. Returns are based on how long your money stays in.
10. ARM Money Market Fund (22.72% Year-to-Date Return)
If you had invested ₦100,000 in the ARM Money Market Fund at the beginning of 2025, you would have earned ₦2,801 by February 14. At an annual return rate of 22.72%, your investment could grow to ₦122,720 by year-end.
- Minimum Investment: ₦1,000
- Where your money goes: Mainly government securities and other money market instruments.
- Key benefits: Quarterly interest payments, competitive interest rates, and multiple and convenient payment options.
Important things to note
Earning passive income is great, but before you invest in money market funds, here are a few things to keep in mind.
Returns can change
- The rates above are from February 14, 2025.
- Interest rates fluctuate weekly: sometimes up, sometimes down.
Your money isn’t locked in
- Money market funds are designed to offer liquidity, allowing you to access your funds relatively quickly.
- Typically, you can withdraw your money within 24 to 48 hours after making a request.
- However, many funds have a minimum holding period, often around 30 days; withdrawing before this period may incur penalties.
- While these funds are intended for short-term investments, with durations of up to one year, reviewing each fund’s specific terms is essential to understand the recommended investment period.
Safety features
- All funds are regulated by the SEC.
- Investments are monitored daily.
- Strict rules ensure your money is protected.
Risks to consider
- Returns aren’t guaranteed; they depend on market conditions.
- Inflation may affect actual returns: if inflation is higher than your fund’s return, your money loses value.
How to start investing in Money Market Funds
Choose a money market fund
- Check past performance, fund size, and investor reviews.
- Look at the minimum investment amount (some start at ₦5,000).
Open an account
- Visit the fund manager’s website or office.
- Complete KYC (submit ID and proof of address).
- Deposit your money.
Track your investment
- Get monthly statements to monitor earnings.
- Stay updated on interest rates, fund performance and market conditions.
Key Takeaways
- These are not regular bank savings; investment professionals manage them.
- The wealthy don’t just save money; they invest it. Now you know one of their secrets.
- Pooling your money with other investors gives you access to better returns than you would make on your own.
- It’s time to make your money work for you. If you haven’t started yet, the next best time is now.
Editor’s note: These rates are based on weekly data from February 14, 2025, and are subject to change.
*Not Financial Advice.
