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If you have ₦1 million sitting in your bank account and you are looking for somewhere relatively low-risk to keep it while still earning a return, two options may catch your attention: GT Fund 724 and the GT Money Market Fund.
Both are managed by Guaranty Trust Fund Managers. Both invest in money-market instruments. Both are designed for investors looking for income and capital preservation.
So, what is the real difference?
And more importantly, if you have ₦1 million, which one makes more sense?
The answer is not simply about which fund has the higher return. Liquidity, how the returns are calculated, fees and how quickly you can access your money also matter.
Based on Guaranty Trust Fund Managers’ Q2 2026 factsheet, the difference in recent performance was almost nothing: GT Fund 724 returned 17.41%, compared with 17.42% for the GT Money Market Fund.
That makes the comparison more interesting.
GT Fund 724 vs Money Market Fund at a glance
| Feature | GT Fund 724 | GT Money Market Fund |
|---|---|---|
| Fund type | Open-ended investment scheme | Open-ended unit trust |
| Main objective | Interest income and capital preservation | Interest income and capital preservation |
| Minimum initial investment | ₦1,000 | ₦1,000 |
| Risk level | Low | Low |
| Main investments | Money-market instruments, short-term government instruments and cash | Treasury bills, bank placements, commercial papers and other money-market instruments |
| Return benchmark | Average 91-day Nigerian Treasury Bill yield | 91-day Treasury Bill benchmark |
| Recent Q2 2026 return | 17.41% | 17.42% |
| Access | 24/7 access to funds up to ₦1 million | Redemption through the fund’s normal process |
| Dividend/return treatment | Dividends accrue daily | Dividends paid quarterly |
| Management fee | 1.5% of NAV | 1% of NAV |
| Risk tolerance | Low | Low |
Sources: Guaranty Trust Fund Managers Q2 2026 factsheet and official product information.
What exactly is GT Fund 724?
GT Fund 724 is a naira-denominated, open-ended investment scheme launched by Guaranty Trust Fund Managers in 2024.
The fund invests in money-market instruments including fixed deposits, commercial papers and Nigerian Treasury Bills.
Its return is benchmarked to the average yield on 91-day Nigerian Treasury Bills from the preceding month.
One of the features that makes Fund 724 different is accessibility. GT Fund Managers says investors have real-time access to funds of up to ₦1 million, while dividends accrue daily. The minimum initial subscription is ₦1,000.
That last point is particularly relevant to someone who wants to keep an emergency reserve or money that may be needed at short notice.
What happened to Fund 724 in Q2 2026?
The fund had a strong increase in assets during the quarter.
According to the Q2 2026 factsheet, its assets under management rose from ₦2.39 billion to ₦4.90 billion, representing a 105.02% quarter-on-quarter increase.
Its return closed at 17.41% at the end of Q2 2026.
The fund manager attributed the lower money-market yields during the quarter partly to increased liquidity in the system. The average Treasury Bill stop rate fell to 16.21% from 16.53% in Q1.
In other words, the investment environment changed during the quarter, but Fund 724 continued to generate a return above the average Treasury Bill stop rate.
What is the GT Money Market Fund?
The GT Money Market Fund is a longer-established investment product.
Guaranty Trust Fund Managers describes it as a low-risk, open-ended unit trust investing in quality money-market instruments.
Its portfolio includes short-term government securities, commercial papers, Treasury Bills and bank placements.
Unlike Fund 724, the fund pays dividends quarterly. Its minimum initial subscription is also ₦1,000.
The fund has been around since 1990, making it considerably older than Fund 724.
The Q2 2026 factsheet shows that the fund’s assets under management increased from ₦417.8 billion to ₦546.6 billion during the quarter, representing 30.81% growth.
Its net return at the end of Q2 2026 was 17.42%.
That is an important number because it means the performance gap between the two products was effectively negligible.
Fund 724 vs Money Market: Which one performed better?
On the most recent quarterly numbers available, GT Money Market Fund had a tiny advantage.
| Fund | Q2 2026 return |
|---|---|
| GT Money Market Fund | 17.42% |
| GT Fund 724 | 17.41% |
| Difference | 0.01 percentage point |
A difference of 0.01 percentage point is not enough on its own to make a sensible investor move from one fund to another.
For ₦1 million, the difference would be only about ₦100 over a full year if both rates remained constant.
That is why looking only at the headline return can be misleading.
What would ₦1 million make?
This is probably the question most investors actually care about.
Suppose you invest ₦1 million and, purely for illustration, the Q2 2026 annualized return of each fund remains unchanged.
This is not a forecast or guaranteed return. Money-market rates can move up or down.
Using a simple annual-rate calculation:
GT Fund 724 at 17.41%
₦1,000,000 × 17.41% = ₦174,100
Estimated balance after one year:
₦1,174,100
GT Money Market Fund at 17.42%
₦1,000,000 × 17.42% = ₦174,200
Estimated balance after one year:
₦1,174,200
The difference?
Just ₦100.
So if someone tells you that one of these funds is dramatically better than the other simply because one returned 17.42% and the other 17.41%, the numbers do not support that conclusion.
What about 3 months and 6 months?
If we use the same rates purely as an illustration and assume they remain unchanged, the simple calculation looks like this:
| Period | GT Fund 724 at 17.41% | GT Money Market at 17.42% |
|---|---|---|
| Initial investment | ₦1,000,000 | ₦1,000,000 |
| 1 month* | ₦14,508 | ₦14,517 |
| 3 months* | ₦43,525 | ₦43,550 |
| 6 months* | ₦87,050 | ₦87,100 |
| 12 months* | ₦174,100 | ₦174,200 |
*Simple illustrative calculation using the Q2 2026 annualized rates. Actual fund returns will vary, and the figures should not be interpreted as guaranteed payouts.
The important thing is not the ₦100 difference.
The important thing is that the two funds are currently operating in a very similar return environment.
So where is the real difference?
This is where the comparison becomes more useful.
1. Liquidity
This is probably the strongest argument in favour of Fund 724.
GT Fund Managers specifically states that Fund 724 provides real-time accessibility to funds up to ₦1 million.
For someone keeping money for emergencies, school fees, business opportunities or an upcoming payment, that can be valuable.
The GT Money Market Fund is also designed as a short-term investment, but its stated structure involves quarterly dividend payments and the normal fund redemption process.
So if immediate access is your priority, Fund 724 has an important practical advantage.
2. How the returns are handled
Fund 724 says dividends accrue daily.
The Money Market Fund pays dividends quarterly.
That does not automatically mean Fund 724 will make more money.
It simply means the products handle income differently.
An investor should therefore distinguish between:
How often income accrues and how much the investment actually returns.
Those are not the same thing.
3. Management fees
There is also a difference in the stated management fees.
The Q2 2026 factsheet lists:
- Fund 724: 1.5% of NAV
- Money Market Fund: 1% of NAV
Both also have an incentive fee of 20% of excess return above the relevant benchmark.
This is worth paying attention to because headline fund performance should not be viewed in isolation from the fund’s fee structure.
However, investors should also check the latest fund documentation to understand exactly how the quoted performance figures relate to fees before making a decision.
4. Portfolio size and history
The GT Money Market Fund is the much larger and older product.
As of Q2 2026, it had approximately ₦546.6 billion in assets under management.
Fund 724 had approximately ₦4.90 billion.
The Money Market Fund was launched in 1990, while Fund 724 was launched in 2024.
That does not mean the larger fund is automatically better.
But investors who value a longer operating history and a much larger pool of assets may prefer the Money Market Fund.
5. Both are exposed to the same broad interest-rate environment
There is another reason the returns are so close.
Both products operate largely within Nigeria’s short-term fixed-income and money-market environment.
As Treasury Bill yields and other short-term rates change, the returns available to money-market investors can change as well.
GT Fund Managers reported that the average Treasury Bill stop rate fell from 16.53% in Q1 2026 to 16.21% in Q2 2026.
The CBN also kept the Monetary Policy Rate at 26.50% during Q2 2026.
This means investors should not assume that a 17%-plus return will remain unchanged for the next 12 months.
Rates can move.
Which one is better for ₦1 million?
For an investor with ₦1 million, I would look at the decision this way.
Choose GT Fund 724 if:
- You want easy access to your money.
- You value the 24/7 accessibility feature.
- You may need to withdraw up to ₦1 million quickly.
- You prefer daily accrual of dividends.
- You want a simple short-term investment option.
Consider GT Money Market Fund if:
- You are comfortable with a more traditional money-market fund structure.
- You prefer a fund with a much longer operating history.
- You want exposure to a very large established money-market portfolio.
- You are comfortable with quarterly dividend payments.
- Immediate 24/7 access is less important to you.
But is either one really “better”?
Not necessarily.
The current numbers suggest that the return difference is too small to be the deciding factor.
As of Q2 2026:
Fund 724: 17.41%
Money Market Fund: 17.42%
That is essentially a tie.
The better choice depends more on what you want the money to do.
If this ₦1 million is your emergency fund, liquidity becomes extremely important.
If the money is intended to sit untouched for a longer period, you may put more emphasis on the fund’s historical record, fees and investment structure.
One thing investors should not forget: inflation
A 17% return may sound attractive.
But the question is not only:
“How much did my money earn?”
It is also:
“Did my money grow faster than the cost of living?”
GT Fund Managers’ Q2 2026 economic review reported Nigeria’s headline inflation at 15.93% in Q2 2026, up from 15.38% in Q1.
If an investment returned 17.41% while inflation was 15.93%, the nominal return is positive, but the real return is much smaller.
Using a simplified real-return calculation:
(1 + 17.41%) ÷ (1 + 15.93%) − 1 ≈ 1.28%
So the real return, under those assumptions, would be roughly 1.28%.
That is a very different picture from simply saying:
“My investment made 17.41%.”
This is why investors should always look at both investment returns and inflation.
What about the wider Nigerian money-market fund market?
The comparison also needs some context.
According to Nairametrics’ analysis of SEC data, Nigeria’s money-market fund segment had 47 funds with approximately ₦5.97 trillion in net asset value as of June 26, 2026.
The segment represented 65.52% of Nigeria’s total mutual-fund assets and had more than 800,000 unitholders.
The highest-performing fund in Nairametrics’ June ranking recorded a 20.54% year-to-date yield, while several others were above 19%.
So an investor shouldn’t assume that every money-market fund will deliver the same return as GT Fund 724 or GT Money Market Fund.
There are dozens of competing funds.
The right comparison should consider:
return + risk + fees + liquidity + fund manager + investment structure.
Our verdict
If you are choosing strictly between GT Fund 724 and GT Money Market Fund, there isn’t currently enough difference in performance to declare one the universal winner.
The Q2 2026 numbers were almost identical.
GT Fund 724 gets the edge for liquidity and convenience, particularly for someone who wants the ability to access up to ₦1 million around the clock.
GT Money Market Fund gets the edge for history and scale, having operated since 1990 and managing substantially more assets.
For a person with ₦1 million, therefore, the question isn’t simply:
“Which one pays more?”
It is:
“How quickly might I need this money, and what kind of investment structure am I comfortable with?”
If you need the money to remain highly accessible, Fund 724 is arguably the more practical choice.
If you are comfortable with the traditional money-market structure and value the much longer track record and scale of the fund, GT Money Market Fund remains a strong option.
And before investing, check the latest fund factsheet and applicable terms because money-market yields change as market conditions change.
Frequently Asked Questions
Is GT Fund 724 a money-market fund?
Fund 724 is an open-ended investment scheme whose portfolio is invested in money-market instruments, including fixed deposits, commercial papers and Nigerian Treasury Bills. It is benchmarked against the average 91-day Nigerian Treasury Bill yield.
How much can I invest in GT Fund 724?
The minimum initial subscription is ₦1,000. GT Fund Managers states that investors have real-time access to funds up to ₦1 million.
How much can ₦1 million make in GT Fund 724?
Using the Q2 2026 return of 17.41% purely as an illustration, ₦1 million would produce approximately ₦174,100 over a full year if that rate remained constant. Actual returns can be different.
Does GT Money Market Fund pay dividends?
Yes. Guaranty Trust Fund Managers states that dividends from the Money Market Fund are paid quarterly.
Which is safer, Fund 724 or GT Money Market Fund?
Both are classified by GT Fund Managers as low-risk products designed around capital preservation and money-market investments. However, “low risk” does not mean that every investment outcome is guaranteed under every market condition. Investors should read the current fund documentation before investing.
Can the return on Fund 724 change?
Yes. Fund 724’s return is benchmarked to the average 91-day Nigerian Treasury Bill yield of the preceding month, so changes in money-market conditions can affect future returns.
Sources
- Guaranty Trust Fund Managers — Fund 724
- Guaranty Trust Fund Managers — Money Market Fund
- Guaranty Trust Fund Managers — 2026 Q2 Factsheet
- Nairametrics — Best Performing Money Market Funds in Nigeria as of June 2026
Editorial note: This article should be reviewed whenever new quarterly fund factsheets are released, because money-market returns and economic conditions change.
