E-Financial
Investing in Mutual Funds to Build and Manage Wealth
Simpa Adaba
The process of wealth management is like tending a beautiful garden- you need to start with good soil and a good set of tools. Just as good soil has the proper fertility to nourish a plant, having the right foundation in financial literacy should empower you to potentially cultivate a successful investment portfolio.
Today, investing in Mutual funds is one of the best methods to build and manage wealth. Mutual funds often referred to as either collective investment schemes, unit trusts or funds, is a financial vehicle that allows various investors pool money together. It is usually managed by a team of investment professionals to create a greater buying power which in turn allows investors the opportunity to invest in a wider range of funds than would have been possible for individual investors.
Mutual Funds serve all types of investors with diverse portfolios. Depending on an investor’s need and priorities, there are many types of Mutual Funds but most prominent are four main categories – Equity (Stock) Funds, Bond (Fixed income) Funds, Money Market Funds and Hybrid Funds.
Equity or Stock Fund is a Mutual Fund that invests principally in stocks. In most cases, it focuses on a investment strategy; such as growth, value, large caps and small caps or themes such as property, energy and health care. The stock fund is in many ways ideal for investors with relatively little capital and people with little financial know-how.
On the other hand, Money Market Fund is a type of open-ended Mutual Fund that allows for short-term investments in debt securities such as Treasury Bills, Commercial Papers and Certificates of Deposit. It is often regarded as one of the safest and most stable securities available, and it is suitable for investors seeking short term investment.
Amongst the several benefits accrued to Mutual Funds investors, there are three key ones:
- a) Investors’ portfolios are exposed to a low level of volatility as investment risk is spread across many securities, b) Investors enjoy professional management. because the Funds are managed by financial experts with years of experience, so investors are almost certain that their investments are properly managed. c) Mutual Funds that are open-ended and priced daily are very liquid and can be redeemed promptly at the prevailing price of the Fund.
In as much as Mutual Funds are one of the safest investment options, we also acknowledge the risk. It is important that any individual looking to invest in Mutual Funds is aware of some of these factors. The Fund is affected by market movements. This means that the price may fluctuate in response to volatility in the market which invariably affects the component investments or underlying assets in the Fund
At Standard Chartered Bank, with as little as $100 for the Retail Savings Plan and $1,000 for the lump sum investment, investors can buy Funds which invest in the equities and bond markets around the world.
To buy a Mutual Fund, please visit any of our branches or download the SC Mobile app on your mobile device and start a plan today.
Simpa Adaba is the Head of Wealth Management at Standard Chartered Bank Nigeria Ltd.
Fidelity Bank Plc, one of Nigeria’s leading Tier-1 financial institutions, has announced a remarkable financial performance for the first quarter of 2025, recording a Profit Before Tax (PBT) of N105.8 billion, representing an impressive growth of 167.8% compared to N39.5 billion in Q1 2024.
Mrs. Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc
The bank’s unaudited financial statements, released on the Nigerian Exchange (NGX) on April 30, 2025, highlight a substantial increase in Gross Earnings, which rose to N315.4 billion, marking a year-on-year growth of 64.2% from N192.1 billion in the same period last year.
Growth in interest income was primarily led by 38.6% yoy (7.4% ytd) expansion in earning assets base, while the increase in non -interest revenue came from FX-related income, trade and commission on banking services, etc., supported by increased customer transactions.
Commenting on the bank’s performance, Dr. Nneka Onyeali-Ikpe,OON, Managing Director/Chief Executive Officer of Fidelity Bank Plc, stated, “We started the year with triple-digit growth in profit and sustained the momentum in our earning assets growth.
This performance shows the resilience of our business model and reinforces our confidence in delivering a better result in the 2025 financial year.”
Other areas of the unaudited financial statements, equally show a marked improvement with Total Deposits growing by 11.1% ytd to N6.6tn from N5.9tn in December 2024, driven by 10.6% ytd growth in low-cost deposits to N6.1tn, which represents 92.2% of total customer deposits. Local currency deposits increased by 2.0% ytd while foreign currency deposits increased by 21.4% from $1.9bn in December 2024 to $2.3bn.
Net Loans and Advances increased by 5.0% ytd to N4.6tn. The growth in the bank’s Loan Book was skewed to LCY Loans as cost of risk declined to 0.6% from 1.5% in 2024FY.
“Beginning the year with such positive momentum reinforces our commitment to supporting the growth of individuals and businesses, while enhancing our financial sustainability. As we go into the rest of the year, we remain focused on building a resilient banking franchise with a diversified earnings base,” Onyeali-Ikpe added.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine.
Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
Securities and Exchange Commission (SEC) has unveiled a technology adoption assessment survey for registered capital market operators as part of efforts to deepen innovation and efficiency in the Nigerian capital market.
In a circular, the SEC stated that the exercise was designed to evaluate the level of adoption of advanced technologies among CMOs operating within the Nigerian capital market.
According to the notice, “The following technology adoption survey is designed by the Commission to assess the adoption of advanced technologies among registered Capital Market Operators.”
The SEC directed all registered operators to log into the e-portal at using their current access credentials to complete the survey. The exercise will run for two weeks, from 5 to 20 May 2025.
Speaking recently on the role of innovation in the capital market, Emomotimi Agama, director-general of the SEC, urged stakeholders to embrace technology as a catalyst for growth, improved transparency, operational efficiency, and market resilience.
He noted that the SEC recognises the emergence of new financial products and services driven by technological advancements, and remains committed to adapting its regulatory framework to meet the evolving needs of the market.
According to him, the commission’s approach to innovation is anchored on three pillars: investor safety, market deepening, and problem-solving aimed at building a robust and efficient capital market ecosystem.
Agama also highlighted the commission’s Regulatory Incubation Programme, which allows fintech startups to operate within a controlled environment for one year while appropriate rules are developed to govern their activities.
He said the programme is part of the SEC’s broader strategy to support innovation while safeguarding market integrity and investor interests.
International Monetary Fund (IMF) ,has confirmed that Nigeria has fully repaid about US$3.4 billion loan it got in April 2020 under the Rapid Financing Instrument to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices.
IMF said the loan has been repaid as of April 30, 2025 in a statement issued in Abuja, Nigeria’s capital on Thursday.
However, IMF said Nigeria is still expected to honour some additional payments in forms of Special Drawing Rights charges hat will amount to US$30 million annually.
“In line with the IMF’s Articles of Agreements, these charges, levied at the SDR interest rate, which is updated at the beginning of each week, apply to the difference between Nigeria’s SDR holdings (SDR 3,164 million) (US$4.3 billion) and its cumulative SDR allocation (SDR 4,027 million) (US$5.5 billion)
“The net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount,” IMF said in the statement. Online fitness
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