“Don’t just work for your money. Let your money work for you.”
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If you're here, you're probably trying to make smarter moves with your money. And you’ve heard of mutual funds, but how do you know if you’re picking the right one?
That’s where the Chapel Hill Denham Paramount Fund (Equity) steps into the spotlight. As one of Nigeria’s leading equity mutual funds, it’s designed to help your naira grow by investing in the best-performing companies on the Nigerian Exchange.
So how do you assess a fund like this? What does its performance really mean? And how does it compare to other options out there? We’ve broken it all down for you.
💡 What Is a Mutual Fund?
At its core, a mutual fund (legally called a Collective Investment Scheme in Nigeria) is a smart way to grow your money without doing all the heavy lifting yourself.
Here’s how it works:
- A bunch of investors (like you) pool their money together.
- A professional fund manager invests that money in stocks, bonds, or other assets for a fee (commonly called a management fee).
- You earn returns based on how those investments perform.
Mutual funds are diversified, professionally managed, and accessible, which makes them perfect for both first-time and experienced investors.
🧺 Types of Mutual Funds in Nigeria
Not all mutual funds are the same. Each one has a different focus depending on your financial goals and risk appetite.
Here's a quick breakdown:
And guess what? You can explore several of these directly on the InvestNaija app, including equity funds like the Chapel Hill Denham Paramount Fund (Equity), bond funds, and money market funds.
📈 What Is an Equity Mutual Fund?
Equity mutual funds, like the Paramount Fund (Equity), focus on investing in shares of listed companies. They’re built for capital growth, meaning they aim to increase the value of your investment over time. These are great if you're looking for long-term returns and can stomach some short-term market swings.
🧠 Why People Like Equity Funds:
- High long-term return potential
- Great for beating inflation
- Managed by professionals who monitor the market daily
🧾 How to Understand the performance of an Equity Mutual Fund like the Paramount Fund (Equity).
When you're sizing up an equity mutual fund, here’s what to look at:
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Net Asset Value (NAV)
Think of NAV as the fund’s "share price." It reflects the value of the fund’s assets (stocks, etc.), minus expenses, divided by the number of units held by investors.
- Current NAV (as of July 2025): ₦50.65
- NAV as of Dec 2024: ₦31.48
The Paramount Fund (Equity) has returned 66.33% from 1st Jan 2025 – 30th July 2025, meaning ₦100,000 invested in January would now be worth ₦166,330. 👀
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Benchmark Comparison (NGX 30 Index)
The Paramount Fund (Equity) uses the NGX 30 Index as its benchmark. This index tracks 30 of the most liquid and capitalised companies on the Nigerian Exchange. Matching or outperforming this benchmark is a sign the fund manager is doing a good job.
- The NGX 30 Index has a Year-To-Date return of 34.06%. This means that the Paramount Fund (Equity) is currently outperforming the NGX 30 Index YTD by 32.28%.
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Total Expense Ratio (TER)
This tells you how much it costs to manage the fund annually. Costs essentially cover management fees, administrative costs, distributive fees and other operating expenses. The Paramount Fund’s TER is 2.03% which is below the industry standard of 3.5%.
🔍 Why It Matters: If a competing fund has lower returns and a higher TER, you’re basically paying more for less.
✅ Winner on returns and cost efficiency? Paramount Fund (Equity).
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Fund Factsheet Insights
The factsheet gives you everything from the investment objective to asset allocation. Here’s what stands out for the Paramount Fund (Equity):
- Fund Type: Open-ended equity growth fund
- Asset Allocation: an average of 95% in equities (growth-driven)
- Top Sectors: Financial services, Consumer Goods, Telecoms, and Industrial.
- Fund Manager: Chapel Hill Denham, one of Nigeria’s most trusted names in Investment Management
🔍 Market Context: Inflation & Growth
Let’s not forget the big picture:
- Inflation in Nigeria (June 2025): 22.22%
- CBN MPR: 27.5%
That’s high. Which means your money sitting in a bank account earning single-digit interest is losing value every year.
The Paramount Fund’s 66.33%YTD return isn’t just growth, it's protection. It’s helping your money outpace inflation and gain real value in a volatile economy.
📊 Understanding Risk: Equity Funds Aren’t Risk-Free
Here’s the truth: Equity mutual funds come with market volatility. Returns aren’t guaranteed. Your capital is at risk.
But historically, long-term investing beats short-term trading, especially when guided by professionals.
The key? Invest based on your goals and risk appetite. If you’re unsure, check out our full guide to understanding your risk level here.
🔄 How Does It Compare with Its Benchmark?
The past five years have brought significant shifts in market dynamics. Despite these changes, the Paramount Fund (Equity) has not only navigated them successfully but has also delivered an impressive 494% return over that period. What sets the Fund apart is its periodic income distributions, which offer investors not just periodic cash flow, but also the opportunity to reinvest and amplify the power of compounding. This disciplined approach has enhanced both the resilience and long-term performance of the Fund.
✅ Better performance
✅ Lower cost
✅ Trusted fund manager
🧠 Key Tips Before You Invest
- Invest long-term (3+ years) to ride out short-term market swings.
- Avoid emotional decisions, don't jump ship during market dips.
- Compare TERs; small percentage differences can eat into returns over time.
- Stay consistent, regular (weekly, monthly, quarterly) top-ups work wonders over time.
🏁 Final Thoughts: Why the Paramount Fund (Equity) Deserves Your Attention
The Chapel Hill Denham Paramount Fund (Equity) is doing what an equity fund should do: grow your money, and in 2025, it’s been doing it better than most.
It’s backed by a trusted asset manager, aligned with market benchmarks, and delivering performance that speaks for itself.
And with InvestNaija, you can invest directly in the Paramount Fund (Equity), starting with just ₦5,000.
🚀 Ready to Invest?
📲 Download the InvestNaija App
✅ Open an account in minutes
📊 Access the Paramount Fund (Equity) under “InvestIN”
💼 Track your investments easily
Because wealth isn’t just built. It’s compounded. And it starts with smart choices, like this one.
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