Top 5 mutual funds in Ghana

Mutual funds is an investment portfolio made up of pools of money collected from many investors. For the objective of investing in securities such as bond, money market instruments, stocks and other assets.

Mutual funds are affordable. You don’t need a lot of money to be an investor. Another reason why mutual funds are preferable is because they are managed by licensed professionals. And so investors with limited investment knowledge can safely invest.

They are also more easily converted into cash as compared to other investments products like stocks. Their operations are regulated by the Ghana Stock Exchange and the Ghana Stock and Exchange Commission.

There are different types of mutual funds and they fall under one of these categories:

Fixed Income Funds

Investment is in long term fixed income like fixed deposits.

Equity Funds

As the name suggests, these are funds invested mainly in shares (equity). Its advantage is long term longevity. An example is HFC Equity Trust and Databank Epack Investment Fund.

Money Market Funds

These funds invest in short term, low risk securities. These funds are not necessarily promoting growth but more of protecting your capital.

Balanced Funds

This strategy employs a merger of strategies to achieve both short term protection of capital as well as growth.

Real Estate Investment Trusts

These funds focuses solely on real estates.

Ethical Funds

Ethical funds exclude certain industries which they believe should not be funded even when profitable. Industries such as tobacco, fossil fuel etc. An example of an ethical fund is Databank Ark Fund Limited

Here are the top 5 mutual funds in Ghana and why you should invest in them.

Databank Epack

Databank Epack Investment Fund (Epack) is Ghana’s first mutual fund. It was introduce in 1996 and has since remained part of the top 5 mutual funds in the country. Investors on this strategy enjoy well researched stocks on the Ghana Stock Exchange and 9 other African countries. Epack is an equity fund with a holding period of at least 5 years.

HFC Equity Trust

This long term open-ended collective investment scheme was established in 2004. Also one of Ghana best 5 mutual funds, HFC Equity Trust thrives to maintain a diverse portfolio of securities. With the objective of preserving investors capital amongst others.

SAS Fortune Fund

These are investments which include short and long term equity, financial instruments, government security and debt. Being one of the top 5 mutual funds in Ghana, SAA Fortune Fund is convenient and gives you fast access to your money.

FirstBanc Heritage Fund

This top 5 mutual investment is aimed at clients with high considerations and long term source of income. Heritage Fund has a general asset allocation of 30% fixed income cash and cash equivalent. And 70% equity.

NTHC Horizon Fund

As an open- ended mutual fund scheme it’s no wonder that NTHC Horizon Fund is one of the top 5 mutual funds in Ghana. It is also a legal entity incorporated as a public company limited by shares. Which is under the Companies Code 1963, Act 179.

Top 5 mutual funds in Ghana

There are over 30 licensed

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