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.
Just started this recommendation to learn market behaviour.
Just started this recommendation to learn market behaviour.
See lessIf you don’t understand the difference between Money Market Fund and Equity Fund… you can lose money and still think you are investing wisely. Oya Relax… let me explain. Because this is where many people get it wrong on platforms like InvestNaija. Let me tell you something… Most people are not invesRead more
If you don’t understand the difference between Money Market Fund and Equity Fund…
you can lose money and still think you are investing wisely.
Oya Relax… let me explain.
Because this is where many people get it wrong on platforms like InvestNaija.
Let me tell you something…
Most people are not investing.
They are just choosing based on name and returns they see on the screen.
They see:
“Money Market Fund” = looks safe
“Paramount Equity Fund” = looks powerful
Then they just click and invest.
No understanding.
No strategy.
No plan.
Now here is the truth…
Money Market Fund and Paramount Equity Fund are not even in the same category.
They are two different worlds.
As a Financial Literacy Advocate…
Let me break it down like I’m talking to Mama Ngozi that sells Tomatoes in the Village.
Imagine:
Mama Ngozi has ₦100,000.
She has two options:
OPTION 1: Money Market Fund
She gives her money to a careful trader.
This trader:
Puts the money in safe places
Treasury Bills
Bank deposits
Commercial papers
Nothing risky.
No drama.
No noise.
What happens?
Small small profit daily
Very stable
No sudden drop
Capital is almost protected
This is what we call:
Low risk investment
Low return
Hiigh stability
Now…
OPTION 2: Paramount Equity Fund (Stock Market)
Mama Ngozi now gives that same money to another trader.
This one is different.
He goes to the market and buys:
Company shares
Stocks like banks, telecom, etc
Now here is where the game changes…
Today profit
Tomorrow loss
Next week big gain
Next month drop
Why?
Because the value of companies is always changing.
So what happens?
Your ₦100k can become ₦120k
It can also drop to ₦90k
This is what we call:
High risk investment
High return potential
High volatility
But here is the problem most people don’t understand
They invest in Equity Fund…
But their mind is expecting Money Market stability.
That is where frustration starts.
You will hear things like:
“Why is my money going up and down?”
“I thought investment is safe?”
No.
You chose the wrong vehicle for your mindset.
Let me give you the real difference in one line
Money Market Fund = Protect your money
Equity Fund = Grow your money (with risk)
Now let me go deeper because (this is where experience comes in)
Smart investors don’t choose one.
They combine both.
For Example:
70% in Money Market (for stability)
30% in Equity (for growth)
Why?
Because…
You don’t fight the market.
You position yourself inside it.
Let me tell you….
Another truth nobody tells you
Equity Fund is not for:
Impatient people
Emotional investors
People checking their app every day
If that is you…
You will panic and sell at loss.
Investment is not about where you put money…
It is about:
Understanding where you are putting your money
And that’s exactly why platform like Fokona Exist, to democratise Financial Literacy in Nigeria and Africa.
Because two people can invest in the same fund…
One builds wealth.
The other loses confidence.
The difference?
Understanding.
My name is Iking Ferry
See lessAnd this is the kind of knowledge that changes how you see money forever.