Frequently asked questions and answersWhat are mutual funds? Mutual funds are professionally managed investment vehicles that pool resources from individuals and invest same in equities, bonds, and other permissible financial securities.
What are the types of mutual funds that we have? There are different types of mutual funds in Nigeria. The basic ones are Money Market Funds, Bond funds, Fixed Income Funds, Specialised funds, Equity funds, Balanced funds, index funds (IETF), Infrastructure funds and Real Estate funds.
How can I invest in Mutual Funds in Nigeria? Visit any registered fund managers or asset management companies for more details or visit Fund Managers Association of Nigeria’s (FMAN) website for a list of registered fund managers. You can also call FMAN’s contact number for more details.
Does FMAN offer any mutual funds for sale? No. FMAN does not offer mutual funds for sale. We are an association of registered fund managers.
What is the minimum investment for mutual funds/collective investment schemes? This depends on the type of mutual fund you are interested in. Nevertheless, with as low as N1,000 you could purchase money market funds from some of our members.
What are Ponzi Schemes? Ponzi schemes are illegal and fraudulent investments that promise high returns in a short period of time.
Are mutual funds recognized as Ponzi schemes in Nigeria? Mutual funds are duly recognized as viable investment vehicles in Nigeria. However, some unscrupulous individuals have taken undue advantage of the viability of this investment class to swindle the unsuspecting public by floating non-existing and unregistered mutual funds. Please confirm that the company offering the product or selling the fund and that the fund or product the company is offering is duly registered with the Securities and Exchange Commission. Request for approval letters from SEC for the company and for the products or funds being offered
What should I do if I discover a Ponzi Scheme? Report to the appropriate authorities such as SEC, Economic and Financial Crimes Commission (EFCC) or send an email to FMAN on firstname.lastname@example.org
How do I identify a registered fund manager? You can check for the name and other corporate information of registered fund managers on the website of the (SEC) or FMAN respectively.