Top 8 Mutual Funds in UAE

Mutual Funds is a well-known investment plan where a company takes money from the investors and invests it in stocks, bonds and other investment options which combinedly is called a portfolio. The invested money is managed by money managers or fund managers. Money managers invest the investment amount into particular shares and assets for profits. 

In simple terms, when an investor invests money in the mutual fund, the money manager buys shares, bonds, etc. on behalf of the investor. When the investment options do well, the investor will gain profits.  

Check: Different Investment options for Expats in Dubai

Usually, Mutual funds are considered as a long-term investment option. So if you are planning to get your investment returns after 5 years or even more than that then mutual funds can be considered. The reason is if you withdraw your investment in 3-5 years, the returns after excluding the fees may not be investment worth. 

Why are Mutual Funds considered?  

Amongst all the investment options available, mutual funds are the most considerable one because of its advantages like, 

• It provides investors with an opportunity to invest in different options
• As the investment is not made in just one particular place, the risk involved can be less
• Low-cost investments can also be made which means every person gets an opportunity to invest

Low-cost Mutual Funds in the UAE

One of the best benefits of mutual funds is it allows investors to make low-cost investments. Systematic Investment Plan is one of the ways to invest in Mutual Funds which accepts monthly payment instead of a lump-sum investment.

Systematic Investment Plan is also known as SIP is offered by many companies and banks that provide wealth management solutions.

Some of the banks that provide low-cost mutual funds investment option in UAE are,

• ADCB – Systematic Investment Plan
• Mashreq – Systematic Investment Plan
• CBD – International Investment Plan
• HSBC
• Emirates NBD – Monthly Investment Plan
• Standard Chartered Bank – Smart Savings Plan
• Citibank – Systematic Investment Plan

Benefits of SIP in UAE

• Low-cost investment option
• Can invest monthly
• Less tenure
• Can withdraw anytime

Top 8 Mutual Funds companies in the UAE 

Here we’ve listed the best mutual funds in the UAE where you can invest. All these companies are based out of different regions which extends their investment options worldwide. Some of these companies are given a rating by Morningstar which is a globally renowned company known for its investment research.   

1. Dunn Capital Management 

Dunn Capital Management started its services in 1974. Currently, it manages over USD 1 Billion of client assets all over the world. It works with a goal to provide the best long-term investment option that works in the widest range of the market. 

Dunn Capital works with currencies Aussie Dollar, British Pound, Canadian Dollar, Euro, Japanese, Yen, Mexican Peso, Swiss Franc. It follows a trending approach in its strategy which is medium to long-term. The investment portfolio is of fixed income, equity, energy, currency, metal, volatility futures and agricultural markets. 

How to have your investment get started with Dunn Capital Management?

Before getting started with the investment, you can visit Dunn Capital Management website and request for their track record, risk management features of their trading programs along with the investment methods. Once you are

2. Fidelity Investments

Fidelity Investments was founded in the year 1946. It works with the principle “Take an intelligent risk and don’t follow the crowd”. It manages around $145 billion of assets. They work only with long-term goals. It is the winner of Thomas Reuters Lipper Fund Awards, Canada 2018. The initial investment required is $500. 

The top holdings are Apple, Microsoft, Nestle, AstraZeneca, Lowe’s, Hoya and much more.

Morningstar Rating: 5

How to start investing through Fidelity Investments?

For investment & savings, you can open online a Brokerage Account or Cash Management Account or both the accounts as well. Through the brokerage account on Fidelity Investments, an investor can invest in 3700+ companies mutual funds. You can open an Individual Account or a Joint Account online.

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3. Lindsell Train Japanese Equity Fund

Lindsell Train Japanese Equity Fund is primarily quoted on stock markets in Japan. As of December 2018, it manages assets of around  £271.8 Million. The top holdings are Milbon, Kao, Nintendo, Shiseido. OBIC Business Consultant and many more. 

The minimum investment amount required is $250,000 and the management fees charged are 0.65% per annum. 

Morningstar Rating: 5 

How to start investing through Lindsell Train?

Investors can visit the Lindsell Train website and contact them.

4. M&G Global Macro Bond Fund

M&G was founded in the year 1931 with an aim to provide long-term savings benefits available to many people. It is the first mutual fund option in the UK. It charges 1.28% per annum as an annual maintenance charge. The minimum investment amount is £500.

Morningstar Rating: 4 

How to start investing through M&G?

Investors can visit the M&G website and contact them to invest over the phone.

5. Schroder US Mid Cap Fund 

Schroders is a global asset management company located at 35 different locations globally which include the Middle East, Europe, Asia, the USA, and Africa. It works with an aim to provide capital growth and income. 

The company invests at least 80% of the funds in equity and equity-related securities in medium-sized companies in the USA. The funds invested are managed actively. 

Morningstar Rating: 2 

6. Crux European Special Situations

The company invests the funds in equity-related securities in companies in special situations in Europe and also in deposits. The minimum investment required is £1,000. Crux European Special Situations works to achieve long-term investment growth and the funds are managed on a concentrated basis

Morningstar Rating: 3

How to start investing through Crux Asset Management?

Investors can visit the Crux Asset Management website and select investment options between Investing through Advisor or Fund Platform. Investors can also invest directly in Crux European Special Situations by contacting them.

7. Invesco Perpetual Asian

Invesco is located worldwide with 25 regional offices that include a branch in Dubai, UAE. As of September 2020, they manage around $1.2 trillion assets of clients.  

Morningstar Rating: 3

8. Fundsmith Equity Fund

Fundsmith Equity Fund invests in worldwide equities with a long-term investment working approach. The funds are managed on a concentrated basis with compromising between 20 to 30 stocks. The top holdings in Fundsmith Equity Fund are Microsoft, Paypal, Facebook, Phillips Morris, Intuit. Estee Lauder, Loreal, etc.  

There are no upfront fees, performance fee, the trading fee charged. 

Morningstar Rating: 5

How to start investing through Fundsmith?

Investors can open an account on Fundsmith and start investing.

Before investing in any particular mutual funds, it is important to get a clear picture of the company and how it manages your funds. Websites like Lipper funds, Morningstar gives valuable insights into the companies by taking past performance, etc. into consideration. 

How to Invest in Mutual Funds in UAE? 

As mentioned earlier, mutual funds are managed by mutual funds companies also called the Asset Management Company. There are two ways available to invest in mutual funds through the asset management company.  

• Online through website
• Online through the app 

Investors can follow the following steps and start their mutual fund investment. 

• Find the best mutual funds company in UAE 
• Register on the website or the app
• Complete the KYC with the required documents. As the process is online, you need to scan your documents and upload 
• Each Asset management company has its own registration fee. Check this before proceeding with registration. Along with the registration fee, there are other fees like annual maintenance fee, trading fee, performance fee, etc. charged. Check all the fees and pick the best asset management company. An average of 1.5% of your fund is charged as an annual management fee. 

Once the account is open, you can start investing. You can check your investment details, performance, fees charged and much more on the app or website by logging to your account. 

Check: Common Investment Mistakes one should avoid

Points to be noted while investing in mutual funds 

• In the case of international funds (mutual funds invested outside the UAE), there are taxes levied as per the invested country regulations. 
• While investing in international funds ensure you check the currency fluctuations 
• Don’t invest before checking the past performance of the company and fund manager 
• Understand your investment goal and proceed with investment and its tenure 
• Know your risk appetite and invest 

These are some of the top mutual funds in the UAE. However, detailed research about the companies is required before you make some investment. As all these companies operate globally, UAE residents are eligible to make their investments after a right set of documents are provided.