Top 5 Money Market Mutual Funds to maximize returns on N5 Million investment

Nigeria’s money market mutual funds (MMMFs) continue to prove their relevance as a safe and profitable investment option in an economy characterized by high interest rates, inflationary pressures, and exchange rate volatility.

As of the week ended August 8, 2025, the total net asset value (NAV) of the industry rose to N3.59 trillion, from N3.52 trillion recorded a week earlier, across 41 licensed fund managers.

This steady growth underlines investors’ increasing appetite for liquidity and capital preservation.

Here are the top 5 Money Market Mutual Funds in Nigeria as of August 2025 to maximize returns on your N5 million investment, based on their year-to-date (YTD) yields and other relevant data:

1. ARM Money Market Fund

   • YTD Yield: 20.89%

   • Net Asset Value (NAV): N247.22 billion

   • Unitholders: 73,084

   • Entry Threshold: N1,000

   • Features: Largest fund among top five, quarterly interest payments, preferred for stability and conservative approach

   • To earn N5 million annually, investment needed: Approx. N23.9 million (lower investments yield proportionally less)

2. Legacy Money Market Fund

   • YTD Return: Approximately 25.15%

   • Invests in short-term, low-risk financial assets such as treasury bills and fixed deposits

   • Competitive interest rates, flexible entry and exit, capital protection, and stable income

3. Meristem Money Market Fund

   • YTD Return: Approximately 24.13%

   • Invests in government securities, bank placements, commercial papers

   • Easy access to funds, suitable for investors seeking liquidity and safety

4. Anchoria Money Market Fund

   • YTD Return: Approximately 23.69%

   • Minimum investment: N5,000

   • Focuses on treasury bills and other government-backed safe investments

   • Flexible adding of funds and stable returns

5. Chapel Hill Denham Money Market Fund

   • YTD Return: Approximately 23.63%

   • Minimum investment: N5,000

   • Mix of safe short-term investments with quarterly interest payments and capital preservation

These funds have offered returns in the region of 20% to 25% annually, providing competitive yields and capital preservation suitable for a N5 million investment. Assuming a similar performance over a year, your investment could yield substantial returns while maintaining liquidity and safety in the Nigerian market in 2025.

If investing exactly N5 million, you can proportionally estimate returns based on these yield percentages. For example, with ARM at 20.89%, a N5 million investment could earn close to N1.04 million annually in returns.

For maximum returns and diversification, consider allocating the N5 million across these top funds according to your risk tolerance and liquidity needs