Section 171: Investment of a collective investment scheme.

(1) A scheme fund shall be invested by a manager in accordance with the provisions of the trust deed or custodial agreement with the objectives of safety and maintenance of fair returns on amounts invested.
(2) Subject to guidelines issued by the Commission, from time to time, the funds and assets of a scheme shall be invested in any of the following:
(a) bonds, bills and other securities issued or guaranteed by the Federal Government and the Central Bank of Nigeria ;
(b) bonds, debentures, redeemable preference shares and other debt instruments issued by corporate entities listed on a securities exchange and registered under this Act ;
(c) ordinary shares of public limited companies listed on a securities exchange and registered under this Act with good track records having declared and paid dividends in the preceding five years;
(d) bank deposits and bank securities of which the banks shall be rated by rating agencies registered by the Commission;
(e) investment certificates of closed-end investment fund or hybrid investment funds listed on a securities exchange and registered under this Act with a good track records of earning;
(f) units sold by open-end investment funds or specialist open-end investment funds listed on the securities exchange recognised by the Commission;
(g) real estate investment; and
(h) such other instruments as the Commission may, from time to time, prescribe.
(3) A manager may invest the funds and assets of a scheme fund in units of any investment funds: Provided that such investment fund may only be invested in the categories of investments set out in subsection (2) of this section and in real estate.
(4) The Commission may, by regulation, impose additional restrictions on investments by a manager where such additional restrictions are imposed with the objects of protecting the interest of a scheme or its beneficiaries.
(5) For the purpose of complying with any guideline set by the Commission as to the quality of instruments and banks that scheme fund assets may be invested in, and to ensure the safety of scheme assets in general, a manager shall have due regard to the risk rating of instruments that has been undertaken by a rating company registered under this Act.