Two Funds Cross 100% Returns Before January Ends — Nigerian Mutual Fund Digest, January 23, 2026
Market Overview
The Nigerian mutual fund industry closed the week of January 23, 2026, with a total market net asset value of ₦6.95 trillion across 201 reporting funds. Just three weeks into the new year, the market is already flashing signals that 2026 could be a year of dramatic divergence — where the gap between top performers and laggards is wide enough to drive a truck through.
The headline number that demands attention: VETBANK ETF has returned 104.07% year-to-date, effectively doubling investor capital in under a month. That's not a typo. Alongside ARM Halal Balanced Fund at 100.46%, two funds have already crossed the 100% YTD threshold before January ends. Whether this reflects genuine alpha or aggressive repositioning into a rallying equity market, the velocity is extraordinary and warrants scrutiny.
Top Performers This Week
The YTD leaderboard reads like a momentum trader's dream. VETBANK ETF (104.07%) and ARM Halal Balanced Fund (100.46%) are in a league of their own, followed by Capital Express Balanced Fund (93.16%), ARM Aggressive Growth Fund (91.14%), and Futureview Equity Fund (64.55%).
ARM Investment Managers dominates with two entries in the top five, suggesting their equity-heavy and Shari'ah-compliant strategies are catching a powerful tailwind — likely riding the Nigerian Stock Exchange's early-year surge. The presence of a balanced fund from Capital Express at 93.16% is particularly notable; balanced funds typically sacrifice upside for stability, yet this one is outpacing most pure equity plays.
Exchange Traded Funds as a category averaged 26.27% YTD, making them the best-performing category overall — a signal that passive, market-tracking strategies are benefiting from broad-based equity gains rather than isolated stock picks.
Category Spotlight
Money Market Funds remain the backbone of the industry, commanding ₦3.93 trillion in NAV — more than 56% of the entire market. Their average YTD return of 16.55% reflects the elevated interest rate environment, with RT Briscoe Savings & Investment Fund leading at 24.30%. For context, money market funds returning mid-teens annualized in January signals that short-term yields remain stubbornly high.
Dollar Funds hold the second-largest pool at ₦1.73 trillion, but their average YTD of just 3.75% suggests muted currency gains — potentially indicating naira stability or limited dollar appreciation so far this year. Futureview Dollar Fund is the outlier at 20.08%, more than five times the category average, which raises questions about portfolio composition.
Equity Funds averaged 14.90% YTD, confirming the broader equity rally, while Infrastructure Funds quietly posted 20.64% — a category worth watching as Nigeria's infrastructure investment thesis continues to mature.
Money Movement — Who's Growing
Follow the money, and it leads to Guaranty Trust Fund Managers, which added ₦10.83 billion in NAV this week alone — more than triple the next closest manager. AXA Mansard (₦3.49 billion), Meristem (₦1.88 billion), FBNQuest (₦1.51 billion), and FCMB (₦1.38 billion) round out the top gainers.
On the flip side, United Capital Asset Management shed ₦6.26 billion — the week's steepest decline by a wide margin. Lotus Capital (-₦880 million) and Zenith Asset Management (-₦811 million) also saw notable outflows or mark-to-market losses. United Capital's decline is significant given the firm's market prominence and deserves close monitoring for whether this represents redemptions or valuation adjustments.
What to Watch
First, monitor whether VETBANK ETF and ARM Halal Balanced Fund sustain their triple-digit returns or face a sharp mean-reversion pullback. Returns this extreme this early often invite profit-taking.
Second, track United Capital's NAV trajectory next week. A ₦6.26 billion weekly decline could be a one-off rebalancing event — or the start of a redemption trend.
Third, watch money market fund yields. At 16.55% average YTD, they remain a compelling risk-free benchmark. If these yields compress, expect capital rotation into equity and balanced funds to accelerate.
Finally, keep an eye on dollar fund flows. With ₦1.73 trillion parked in dollar-denominated strategies returning under 4%, any shift in exchange rate expectations could trigger significant reallocation.