In the first quarter of 2026, smaller equity mutual funds outperformed Nigeria’s biggest fund managers, reporting returns of up to 52 percent as investors’ gains were boosted by the general stock market rally.
Away from daily NGX volatility, mutual funds are emerging as a strong alternative for equity exposure.
The majority of equity funds saw gains in the first quarter of between 28 and 40 percent, according to data from the Securities and Exchange Commission’s most recent valuation report as of late March.
Beyond the obvious gains, the data shows a deeper trend: several smaller and mid-sized funds outperforming the market leader, indicating that fund size did not correlate with better performance.
Here are the top 10 Nigerian equity mutual funds that delivered the strongest returns in the first quarter of 2026, highlighting the funds that generated the highest gains for investors during the period.
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Zedcrest Equity Fund — 51.86%
Zedcrest Equity Fund, managed by Zedcrest Investment Managers Limited, delivered the strongest return in the first quarter, rising 51.86 percent.
Zedcrest Equity Fund is a high-performing SEC-licensed mutual fund designed for short-term income and capital appreciation.
Halo Equity Fund — 44.00%
Halo Equity Fund, managed by Halo Asset Management Limited, followed with a 44 percent return, reflecting strong positioning in high-performing stocks.
Paramount Equity Fund — 38.70%
Paramount Equity Fund, managed by Chapel Hill Denham Asset Management, posted a 38.70 percent return, benefiting from gains across its diversified equity holdings.
The Paramount Fund is Nigeria’s oldest mutual fund, which invests in a broad range of high-quality equities and fixed-income securities. The fund aims to achieve consistent capital appreciation and income generation over the long term.
Zrosk Magna Equity Fund — 38.56%
Zrosk Magna Equity Fund, managed by Zrosk Investment Management Limited, delivered a 38.56 percent return, driven by its concentrated exposure to fundamentally strong companies.
The Zrosk Magna Equity Fund is an actively managed equity strategy focused primarily on Nigerian listed companies. The fund invests in a small number of strong businesses that generate good profits and have the potential for strong returns over time while staying aware of the overall economic situation.
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PACAM Equity Fund — 38.19%
PACAM Equity Fund, managed by PAC Asset Management Limited, returned 38.19 percent over the period.
The fund invests in a diversified portfolio of high-quality companies listed on the Nigerian Stock Exchange and short-term money market instruments.
Cowry Equity Fund — 33.35%
Cowry Equity Fund, managed by Cowry Treasurers Limited, recorded a 33.35 percent return.
The Cowry Equity Fund is a SEC-registered mutual fund aimed at long-term capital growth by investing 70 percent – 85 percent in Nigerian Exchange (NGX) listed stocks, with 5 percent – 25 percent in money market instruments and 5 percent – 25 percent in bonds.
Guaranty Trust Equity Income Fund — 32.25%
Guaranty Trust Equity Income Fund, managed by Guaranty Trust Fund Managers, returned 32.25 percent, supported by dividend-paying stocks.
Guaranty Trust Equity Income Fund provides regular income and long-term capital appreciation from investments in equities.
This is achieved by investing in dividend knights, which are quoted on the Nigerian Stock Exchange.
CardinalStone Equity Fund — 31.99%
CardinalStone Equity Fund, managed by CardinalStone Asset Management Limited, delivered a 31.99 percent return.
Meristem Equity Market Fund — 31.20%
Meristem Equity Market Fund, managed by Meristem Wealth Management Limited, posted a 31.20 percent return.
The fund is for investors who are willing to take more risk for better returns on investment. It is open-ended and constituted under a trust deed while investing in a basket of high-quality equity securities, with a focus on Nigerian companies.
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Legacy Equity Fund — 30.20%
Legacy Equity Fund, managed by FCMB Asset Management Limited, recorded a 30.20 percent return.
The fund is designed for investors seeking capital growth over economic cycles by investing primarily in quoted securities on the Nigerian Exchange.
However, even with the broad market upswing, performance varied across funds. The largest equity fund in Nigeria, Stanbic IBTC Nigerian Equity Fund, which holds almost 30 percent of the market, returned 29.76 percent, trailing a number of smaller peers.
In contrast, several of the top-performing funds control a much smaller share of the market. Zedcrest Equity Fund, which delivered the highest return of 51.86 percent, accounts for just 1.94 percent of total equity fund assets. Halo Equity Fund, which returned 44 percent, holds only about 0.22 percent, while PACAM Equity Fund, with a 38.19 percent return, represents roughly 0.15 percent of the market.
The contrast highlights how smaller funds, despite managing significantly less capital, were able to deliver stronger returns during the market upswing.
The disparity draws attention to a crucial aspect of the current market cycle: although gains have been widespread, fund performance has varied, with smaller managers better positioned to profit in a rising market.
The lesson for investors is straightforward: investing in stocks produced high returns, but results varied greatly depending on the fund.