Egypt’s regulators approve 2nd gold mutual fund

By Aya Anwar On Apr 17, 2024

Cairo regulators have greenlighted Beltone EvoGold Fund, the second gold-focused mutual fund launched this year, following an approval for Azimut’s AZ-Gold Fund in 2023. The government is also considering a third fund offered by a subsidiary of the National Bank of Egypt (NBE), according to a Cabinet statement on Wednesday.

A report presented to Prime Minister Moustafa Madbouli revealed that a significant number of Egyptians, exceeding 102,925, have joined the newly-launched gold investment funds. This indicates a high level of interest in this new investment option.

FRA ensures transparency, security

According to Mohamed Farid Saleh, head of the Egyptian Financial Regulatory Authority (FRA), the gold funds are overseen by the FRA itself. He emphasised that only licensed investment companies with expertise in fund and portfolio management are entrusted with handling these funds. To ensure accessibility, the minimum investment amount starts from just 10 Egyptian pounds, which is equivalent to 100 units during the initial subscription period.

Flexible redemption options

Saleh further clarified that investors have the freedom to choose how they receive their returns. Depending on the specific investment policy set by each gold fund before the subscription period begins, investors can opt to redeem their investment in cash or receive physical gold. This flexibility caters to different investor preferences.

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