3 Best Index Funds In Nigeria You Should Invest On
As what you’ve known, people were starting to do investment by spending it on some stocks or mutual funds. There are several choices you can choose in investment, one of them is index funds. Before you really spending money on it, make sure you know what is index funds. Here are 3 best index funds you can choose in Nigeria!
Index Funds In Nigeria
Even though index funds is not that popular in Nigeria, but it still exists. They are traded on the stock market like any other stock and are listed on the NGX Indices. Comparing to overseas index funds, the performance in Nigeria is not quite as stable as them. The fluctuations on the NGX Indices are just too frequent and there’s no real assurance that an index fund would perform optimally. But, there are still several excellent index funds available that offer investors solid returns on a yearly basis.
Best Index Funds In Nigeria
If you are Nigerian and planning to buy index funds, here are some top recommendations you can buy to earn high profit.
1. The Standard IBTC ETF 30
The Standard IBTC Exchange Trust Funds 30 is quite similar with The Nigerian Stock Exchange 30 Index (NSE 30 Index) prior to fees and costs. It aims to maximize the total return of the NSE 30 Index in terms of both price performance and income from the index’s underlying securities. It is an open-ended fund that invests full of its portfolio in equities. It can be easily traded by the Nigerian Stock Exchange and has an expense ratio of 0.5%.
By investing in a variety of assets, the Stanbic IBTC ETF 30 reduces the risks associated with investment. Since it is not focusing in one particular, it reduces the chance of failure. It also affordable due to fewer expenses for maintenance and administration. It is also considered as a secure long-term investment.
2. Vetiva Griffen 30
The Vetiva Griffin 30 ETF has been a crucial instrument for diversification for a variety of investors throughout the years, including individual investors, pension fund managers, portfolio managers, and international investors looking to engage in Nigerian equities markets. Vetiva Capital Management Limited sponsors the Vetiva Exchange Traded Fund, and Vetiva Securities Limited is its authorized dealer.
Vetiva Griffin provides a range of asset classes accessible to regional investors. There is maximum benefits for investors with just one security as well as multiple security holders. The size of the fund is used to lower transaction costs and hence increase portfolio returns.
3. Nigerian Stock Exchange (NSE)
In West Africa, the Nigerian Stock Exchange (NSE) is the largest market for exchange-traded funds in terms of listings, volume, and capitalisation. The performance of Exchange Trade Funds is determined from the index or underlying assets they track. With the help of the NSE Exchange Trade Funds, investors can diversify their holdings across a range of asset classes, increase their exposure to a wider market, and engage in a number of different investment strategies, including local fixed income, local equities, international markets, commodities, and currency trading.
An investor can monitor particular indices, such as global, country-specific, and asset-specific indices, with the use of Nigerian Stock Exchange ETFs. If you are looking for efficient access to other markets and asset classes, this is the perfect option for you. It is also good for passive investors who has limited time to monitor the market.
Which One Will You Invest?
There are still several option of index funds you can choose in Nigeria. Choosing which one you will invest is hard and you have to consider it carefully. Remember to research it beforehand to minimize the potential of losing money. We hope this helps in deciding which one is best for you, good luck!
