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Things to know about the money market in Nigeria

Money Market Nigeria (Photo. Unsplash/Micheile Henderson)

Money Market Nigeria (Photo. Unsplash/Micheile Henderson)

The money market in Nigeria.

The money market is one in the collection of mutual funds that offer high liquidity and short-term maturities.

The arrangement of the money market allows it to open an investor up to investment instruments that are safe – one of the principal factors of investments. The returns for trading assets on the money market are also higher than those of a basic savings account in Nigeria.

Some banks in Nigeria offer money market investment account with a startup rate of a minimum of N5000.

The money market vs mutual fund in Nigeria

The money market is a big player in Nigeria’s mutual fund space and in the last years, this space rose both in number and asset value.

NAV Summary Report shows the industry’s asset value in June 2020 grew from N1 trillion to N1.3 trillion.

The contribution of the money market to this growth was primarily seen in the NAV 2019 report when the mutual funds reached trillion Naira.

The money market is beneficial to regular savers with short to medium-term financial target that would like to grow income. More of the benefits of the money market fund include:

Things to know about the mutual fund in Nigeria

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