Earn Higher Returns with the Chapel Hill Denham Money Market Fund

Inflation Is Down, But Is Your Money Still Safe?

Nigeria’s inflation rate dropped to 24.8% following a recent rebasing exercise by the National Bureau of Statistics (NBS). Sounds like good news, right? Well, not so fast. Inflation may have eased, but it’s still high enough to erode your savings if your money isn’t earning competitive returns.

To keep inflation in check, the Monetary Policy Committee (MPC) held the Monetary Policy Rate (MPR) steady at 27.5%. That means money market yields remain elevated—which is great news for investors looking for low-risk, high-return opportunities.

If you’re wondering where to invest your money in 2025, money market mutual funds are a top choice, offering a combination of stability, liquidity, and inflation-beating returns. Whether you're an investing newbie or looking for a low-risk way to grow your wealth, money market funds offer a smart, steady path to financial security.

 This article explores what mutual funds are, how they work, and why money market mutual funds are a smart investment in Nigeria for 2025—with the Chapel Hill Denham Money Market Fund standing out as one of the best-performing funds in Nigeria.

What Are Mutual Funds?

Think of a mutual fund as a group contribution (ajo or esusu), but instead of just saving, your money is professionally invested to grow over time. The fund manager makes the investment decisions across a mix of assets like stocks, bonds or money market instruments, while you sit back and watch your money work for you.

Types of Mutual Funds: Open-Ended vs. Closed-Ended

Not all mutual funds are created equal. There are two main types:

Open-Ended Funds: These let you buy or sell units anytime at the current Net Asset Value  (NAV); the NAV of a mutual fund changes daily based on the value of the investments inside the fund. It’s simply the price you pay when buying into the fund and the price you get when selling. Think of open-ended fundsas the Uber of investing—you get in or out when you want.

Closed-Ended Funds: These have a fixed number of units and trade on the stock exchange like shares. Prices can fluctuate based on supply and demand, so your returns depend on market conditions.

Money market mutual funds are typically open-ended, meaning you can invest and withdraw with flexibility.

What Are Money Market Funds?

Money market funds are a type of mutual fund that invests in short-term, high-quality financial instruments like Treasury Bills, Fixed Deposits, and Commercial Papers.

Their main benefits?
✅ Low Risk: They invest in stable, low-volatility assets.
✅ Steady Returns: No wild swings like stocks—just consistent growth.
✅ High Liquidity: You can access your money relatively quickly.

How to Make Money from a Money Market Fund

Unlike high-risk investments that require constant monitoring, money market funds generate passive income with minimal effort. Here’s how you make money from them:

💰 Interest Earnings: Money market funds invest in short-term, high-quality financial instruments like Treasury Bills, Fixed Deposits, and Commercial Papers. The interest generated from these investments is passed on to you as returns.

📈 Compounding Growth: Many money market funds allow you to reinvest your earnings, meaning you earn interest not just on your principal, but on your past earnings as well. Over time, this accelerates your wealth growth through compound interest.

💹 Capital Preservation with Steady Returns: Unlike stocks, where your money fluctuates based on market conditions, money market funds focus on capital preservation. Your investment is structured to remain stable while earning consistent returns.

🔄 Liquidity & Accessibility: Need quick access to your funds? Most money market funds allow you to withdraw your money within 24 to 48 hours, making them an excellent option for short-term savings and emergency funds.

🚀 Inflation Protection: While money market funds won’t make you rich overnight, their higher-than-average interest rates help protect your wealth against inflation—ensuring your money continues to grow rather than lose value over time.

Are Money Market Mutual Funds Safe Investments?

No investment is 100% risk-free, but money market funds come pretty close.

They focus on safe, short-term assets and are regulated by the Securities and Exchange Commission (SEC) Nigeria (check their guidelines here). However, inflation can erode your returns, so choosing the right fund is key.

Our Top Money Market Mutual Fund Picks for 2025

We’ve done the research, here are our top picks for money market funds in Nigeria for 2025:

Chapel Hill Denham Money Market Fund (Our Top Pick!)

Overview: Chapel Hill Denham Management Limited manages this open-ended fund, which invests in a mix of short-term, high-quality money market instruments. The fund aims to provide a steady income while keeping your capital safe. Investors receive quarterly interest payments and can easily enter or exit the fund.

• Annual Yield Rate: 23.74%
• Minimum Holding Period: 30 days
• Minimum Investment Amount: ₦5,000
• Why We Love It:
  ✅ One of the highest yields in the market.
  ✅ Low entry barrier—start with just ₦5,000.
  ✅ Professionally managed for capital preservation and steady returns.

💡 Invest Now on InvestNaija—the digital platform powered by Chapel Hill Denham for providing investors with access to the Chapel Hill Denham Money Market Fund.

📌 Learn more about this fund on Chapel Hill Denham’s website.

ARM Money Market Fund

Operated by ARM Investment Managers, this fund focuses on government securities and other money market instruments. It's designed for investors seeking low-risk opportunities with competitive returns.

• Annual Yield Rate: 22.69%
• Minimum Holding Period: 30 days
• Minimum Investment Amount: ₦1,000
• Why It Stands Out:
  ✅ Low minimum investment—start with just ₦1,000.
  ✅ Strong performance and competitive returns.

FBN Money Market Fund

Managed by FBNQuest Asset Management, this open-ended fund invests in a diverse portfolio of short-term, high-quality money market instruments, including Treasury Bills and Commercial Papers.

• Annual Yield Rate: 22.37%
• Minimum Holding Period: 30 days
• Minimum Investment Amount: ₦5,000
• Why It Stands Out:
  ✅ Backed by FBNQuest Asset Management.
  ✅ Focuses on high-quality Treasury Bills and Fixed Deposits.

Stanbic IBTC Money Market Fund

This fund, managed by Stanbic IBTC Asset Management, focuses on high-quality short-term securities such as Treasury Bills, Commercial Papers, and Fixed Deposits.

• Annual Yield Rate: 22.32%
• Minimum Holding Period: 30 days
• Minimum Investment Amount: ₦5,000
• Why It Stands Out:
  ✅ Reliable and stable performance.
  ✅ Perfect for short-term and emergency savings.

United Capital Money Market Fund

Operated by United Capital Asset Management, this fund invests in a mix of Treasury Bills, Fixed Deposits, and Commercial Papers.

• Annual Yield Rate: 20.93%
• Minimum Holding Period: 30 days
• Minimum Investment Amount: ₦10,000
• Why It Stands Out:
  ✅ Strong reputation for capital preservation.
  ✅ Ideal for investors seeking low-risk returns.

The Impact of Inflation and the Power of Compound Interest

 Inflation in Nigeria has been relentless, reaching a near 30-year high of 34.8% in December, before its recent decline. The higher the inflation rate, the less purchasing power your money holds over time. That’s why saving alone won’t cut it—you need to invest.

The best way to beat inflation?
✅ Choose high-yield investments like money market funds.
✅ Reinvest your earnings and let compound interest work its magic.

Final Thoughts: Make Your Money Work for You

If you’re looking for low-risk, high-return investments, money market funds are a smart move. And if you want the best pick for 2025? 💡 Start investing in the Chapel Hill Denham Money Market Fund today, available on InvestNaija. Because the love for investing is the best love of all. 💙