Using InvestNaija platform, what are the difference(majorly and minorly) between money market fund and Paramount Fund(Equity)
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Using InvestNaija platform, what are the difference(majorly and minorly) between money market fund and Paramount Fund(Equity)
Here is the clear difference between Money Market Fund (MMF) and Paramount Fund (Equity) on the InvestNaija platform. I'll explain major differences first, then minor differences, then which one is best for you. 🥇 Major Difference (Most Important) Feature Money Market Fund (MMF) Paramount Fund (EquiRead more
Here is the clear difference between Money Market Fund (MMF) and Paramount Fund (Equity) on the InvestNaija platform.
See lessI’ll explain major differences first, then minor differences, then which one is best for you.
🥇 Major Difference (Most Important)
Feature
Money Market Fund (MMF)
Paramount Fund (Equity)
Risk Level
Low risk
High risk
Return
Moderate
High (but fluctuates)
Investment
Treasury bills, deposits
Nigerian stocks
Capital Safety
Very safe
Can go up or down
Best For
Beginners / short term
Long term growth
Withdrawal
Fast (1-2 days)
Slower sometimes
Volatility
Very stable
Can rise and fall
📊 What Money Market Fund (MMF) Does
The Chapel Hill Denham Money Market Fund:
Invests in Treasury bills, deposits, commercial paper
Focuses on capital preservation and steady income
Allows easy entry and exit
Pays steady returns with low volatility
Typical returns:
Around 20%–24% yearly (market dependent)
Best for:
Beginners
Emergency savings
Short-term investment
📈 What Paramount Fund (Equity) Does
The Chapel Hill Denham Paramount Fund (Equity):
Invests mainly in shares of Nigerian companies
Targets capital growth
Around 95% invested in stocks
High return but capital can fluctuate
Example:
66.33% return in 2025 (Jan-July)
494% return in 5 years
(But returns not guaranteed)
Best for:
Long-term investors
People who want higher growth
Investors who can handle market ups & downs
🧠 Minor Differences
Feature
MMF
Paramount Equity
Minimum investment
₦5,000
₦5,000
Investment horizon
Short term
Long term (3+ years)
Income type
Interest
Capital growth
Market exposure
No stock market
Stock market exposure
Volatility
Very low
High
🏆 Which One Should You Choose?
Since you’re new, I recommend:
Start Like This
60% → Money Market Fund
40% → Paramount Equity
This is safe beginner strategy.
Example: If you invest ₦100,000:
₦60,000 → MMF
₦40,000 → Paramount
This balances:
Safety
Growth
My Honest Advice (Based On You)
Since you’re:
New investor
Still learning
Building capital
Start with:
Money Market Fund first
Add Paramount gradually
This is the smart investor path.