Afrinvest Mutual Funds Delivers 12.7% Return YTD

Afrinvest Mutual Funds only requires a minimum of N50,000 investment with an uncapped upside despite its diluted risk profile. Again, the mutual fund has delivered on its objective, according to a factsheet tracked by analysts.

The mutual fund which invests in shares of companies listed on the Nigerian Exchange Group saw a 12.7% year-to-date (YTD) return on investment from the beginning of the year to date.

With a net asset value of N1.268 billion, the mutual fund which was launched in 2007 has become a good investment option due to nosediving macroeconomic conditions.

In its latest update, the fund extended its positive run from the previous year to deliver a 12.7% year-to-date return, while Afrinvest Dollar Fund maintained a 8.30% return from December 2023, delivering stable returns to unitholders.

“While the astronomic rally witnessed in January cannot be fully explained by fundamentals, it is a clear indication of strong investor optimism. However, we anticipate price corrections in February as profit-taking activities begin, while others could see this as an opportunity for strategic positioning in value stocks.

“We also bear in mind that corporate releases and policy changes could introduce some volatility, particularly in the Banking sector. Nevertheless, we remain committed to our strategies while dynamically adapting to the “new normal”, the company told investors in an update.

The investment firm explained that following its impressive performance in 2023, the Nigerian equity market commenced the New Year with strong positive momentum in January.

During the month, the benchmark index crossed the 100,000-point psychological barrier as it rallied 35.3% month on month, while market capitalization expanded by N14.1 trillion to N55.4 trillion, Afrinvest said in its market update.

The firm added that while some of the bulls can be attributed to earnings expectations, optimism, and the January effect, the market was mostly driven by speculation and strategic investments in DANGCEM.

Across sectors under Afrinvest’s purview, gains were recorded in all but the Banking sector, which dipped 3.4% month on month on the back of profit-taking activities in GTCO (-8.6%), FBNH (-7.9%), and other heavily capitalised banks.

On the positive side, the Industrial Goods Index was the frontrunner, advancing 107.9% month on month thanks to strong demand in DANGCEM (+138.5%) and BUACEMENT (+90.7%).

In a similar trend, the Consumer Goods and Insurance indices closed in the green, both up 24.3% and 21.7% month on month respectively, as BUAFOODS (+40.5%), PZ (+24.0%), LINKASSURE (+46.3%), and AIICO (35.0%) enjoyed positive attention.

 Finally, price appreciation in ETERNA (+58.5%), SEPLAT (33.1%), and MTNN (6.4%) pushed the Oil & Gas and AFR-ICT indices higher by 20.0% m/m and 6.2% m/m respectively.

 Mirroring the overall market, the AEF also extended its positive run from the previous year to deliver a 12.7% YTD return in the first month of the year. Moreso, the fund recorded increased participation from investors, thereby prompting a cautious tactic with the sole aim of protecting clients’ capital in an unpredictable market. This further underscores the fund manager’s efforts to balance risk and reward without jeopardizing client interest. #Afrinvest Mutual Funds Delivers 12.7% Return YTD#

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