What a decade of fund returns tells young Nigerians about starting early

Between 2016 and 2025, the Stanbic IBTC ETF 40 Fund delivered a cumulative return of 829%, or an average annual growth of 32.5%. This figure surpassed the NGX All Share Index by roughly 7 percentage points, even during three years when the market index fell: 2016, 2018, and 2019. The decade-long growth was largely driven by good years, which outperformed the poor ones.

This underscores the value of starting early in investing, not just about making a large opening investment, but providing sufficient time for compounding to work its magic.

The Nigerian economy, in 2026, saw inflation spike to 15.93%, down from a peak of 26.06% the previous year. Even with this challenge, money left in strategic investments can still maintain its purchasing power over time. The conversation around investing should expand beyond merely beginning early; it should also focus on understanding what to keep accessible, what to invest, and maintaining consistency.

First-time investors often hesitate due to risk concerns, which are valid. However, equity-focused funds like ETF 40 and Shariah-compliant options like the Imaan Fund have shown strong performance, even in favourable market conditions. Conversely, more conservative options such as the Money Market Fund, the Guaranteed Income Fund, and bond-focused choices have also offered solid returns during the same period.

Stanbic IBTC Asset Management provides a digital investment platform through BluNest, which simplifies access to various fund categories. Entry requirements are minimal, starting as low as ₦5,000, with no need for advanced financial knowledge or a large initial investment. The platform caters to diverse investment goals and risk tolerances, making it a valuable tool for young Nigerians seeking to build wealth over time.

In a changing economic landscape where income patterns are diversifying, with many young people earning through freelance work, content creation, and side hustles, financial discipline becomes increasingly important. Investing is not solely about wealth creation; it also fosters discipline and the practice of making purposeful financial decisions that support long-term growth amidst fluctuating prices.

To make investing more relatable and practical, Stanbic IBTC Asset Management launched InvestBeta, a financial-focused game show, for Season 3, which is set to air on YouTube. This initiative aims to demystify financial decision-making and engage young Nigerians in practical financial education. The 20% Challenge, a segment of InvestBeta, encourages participants to allocate 20% of their monthly income into a Money Market Fund through BluNest, fostering a habit of consistent saving and investing.

BluNest, integrated within the Stanbic IBTC Mobile App, consolidates access to various funds, including ETF 40 and the Money Market Fund, with an affordability of starting at ₦5,000. This platform removes the intimidation factor, providing professionally managed funds, expert guidance, and the potential to seek personalized advice as needs evolve.

The message conveyed is clear: investing can be approached without needing a large sum or sophisticated financial expertise, and starting early significantly diminishes the potential opportunity cost. It is crucial for young investors to explore their options, align them with their risk appetite, and begin building consistent investment habits from an early stage.

Remember, past performance does not predict future returns, but the data emphasizes that delaying investment decisions can have significant financial implications.