Investments in mutual funds hit N174bn

The total value of mutual funds investment rose by N23.67bn or 15.7 per cent at the end of 2014. At the end of trading in 2013, the value of investment in mutual funds, also known as Collective Investment Scheme, closed at N153.83bn. A report obtained from the Securities and Exchange Commission on Friday showed that the value closed at N174.50bn at the end of last year. SEC, with the Nigerian Stock Exchange and market operators, had in the last few years emphasised the wisdom of diversification through investment in mutual funds. The CIS, usually managed by a fund manager, involves collecting money from different investors that have a common investment objective and reinvesting such funds. It is a form of investment that is accessible to all, where each investor has a proportional stake based on how much money they have invested in the pool of funds. The fund manager invests the money by buying treasury bills, stocks, bonds, or other securities, according to specific investment objectives that have been established for the scheme.