Best Mutual Funds in UAE

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Mutual funds are pooled securities managed by professional fund managers. When you invest in mutual funds your capital is combined with other investors’ money. Fund managers actively manage the portfolio so that the investment goals of clients are met. Mutual funds are a good option for people that don’t want to invest in stocks themselves or have no time to do this. There are local, regional and international mutual funds that invest in different sectors and markets. To sum it up, mutual funds enable traders to invest in a diversified set of assets fast easy and quick.

In this guide we go over the best mutual funds for UAE investors. If you are new to investing, we recommend to check this article on how to invest in mutual funds first.

How to Invest In Mutual Funds in UAE?

1. Investing in International Mutual Funds

You can invest in international mutual funds on your own via a mutual fund broker and platform. If you are a beginner we recommend investing with the help of a financial advisor. They can advise you on which funds match your risk profile and investment goals.

If you are investing on your own, here are the best performing international mutual funds with minimum investment bellow $3000 are: Shelton NASDAQ-100 Index Direct, Voya Russell Large Cap Growth Index Fund, Fidelity NASDAQ Composite Index, Voya Russell Large Cap Index Port I and Fidelity 500 Index Fund.

2. Investing in Local UAE Mutual Funds

You can invest in local UAE mutual funds via local investment companies that specialize in investing in the MENA and GCC regions. These investment firms offer Islamic and Sharia-compliant funds. We have listed the best UAE mutual funds below:

The Best Mutual Funds in UAE

  • Shelton NASDAQ-100 Index Direct (NASDX)
  • Voya Russell Large Cap Growth Index Fund (IRLNX)
  • Fidelity NASDAQ Composite Index (FNCMX)
  • Voya Russell Large Cap Index Port I (IILRX)
  • Fidelity 500 Index Fund (FXAIX)

This section breaks down the best international mutual funds in UAE, starting with the best rated – Shelton NASDAQ-100 Index Direct (NASDX).

1. Shelton NASDAQ-100 Index Direct (NASDX)

The Shelton Nasdaq-100 Index Direct fund tracks the performance of non financial-primarily tech companies in the Nasdaq 100 Index. Over the last decade this funds stands out with its strong performance, which started back in 2000.

2. Voya Russell Large Cap Growth Index Fund (IRLNX)

IRLNX  invests at least 80% of its net assets in the equity of companies, as well as convertible securities. It tracks the performance of large US-traded companies

3. Fidelity NASDAQ Composite Index (FNCMX)

FNCMX invests at least 80% of assets in common stocks included in the NASDAQ index. The advisors use statistical sampling techniques to create a portfolio that represents the entire index. The fund lends securities to earn income.

4. Voya Russell Large Cap Index Port I (IILRX)

The fund has similar investment portfolio as the Voya Russell Composite Index. The main diffrence is that fund is more focused on the companies with higher value (not with higher growth potential as IRLNX)    

5. Fidelity 500 Index Fund (FXAIX)

The Fidelity 500 Index Fund tracks the S&P 500 index. It is one of the main benchmarks for U.S. stocks. The fund provides returns that are like the  performance of the S&P 500. As of May 18, 2022, the fund has assets totaling almost $366.26 billion invested in 509 different holdings

You can invest in mutual fund using an online brokerage account (trading platform) or through a investment bank. Here is our list of the best mutual funds trading platforms.

How Did We Select The Best Funds?

Below are our main criteria we considered when selecting the best funds:

  • Fund has to available to residents of UAE
  • 5 star rating according to MorningStar
  • MaxFunds rating above 90 points (out of 100)
  • No sales load (commision)
  • Expense ratio is bellow 0.60%
  • Minimum investment is bellow $5000
  • We were measuring funds according to 5year annulized performance 

Best Funds Compared Side By Side In Main Categories

Mutual FundsTickerMAX Rating1y3y5y10yExpense RatioMin Invest.TypeCategoryMorning Star
Shelton NASDAQ-100 Index DirectNASDX98-7,421,717,218,20,511000No LoadLarge Growth5
Voya Russell Large Cap Growth Index FundIRLNX100-3,719,916,916,50,430No LoadLarge Growth5
Fidelity NASDAQ Composite IndexFNCMX95-11,418,415,216,70,290No LoadLarge Growth5
Voya Russell Large Cap Index Port IIILRX91-1,516,813,714,40,360No LoadBlend5
Fidelity 500 Index FundFXAIX980,316,1313,414,40,020No LoadBlend5
Schwab Fundamental U.S. Large Company Index FundSFLNX974,218,413,414,10,250No LoadLarge Value5
Vanguard Growth & Income InvVQNPX930,816,813,414,40,313000No LoadBlend5
Vanguard Equity Income Fund VEIPX938,414,811,5130,283000No LoadLarge Value5
Vanguard Value Index FundVVIAX915,414,311,413,20,053000No LoadLarge Value5
Fidelity Emerging Market FundFEMKX87-23,38,37,27,10,880No LoadEmg. Markets5
DSP BlackRock Global Allocation Fund-12,297,616,475,162,10No Load5
Vanguard Dividend Growth InvVDIGX975,814,613,513,70,273000No LoadBlend4
DFA US Large Company IDFUSX99-0,416,413,314,30,080No LoadBlend4
Northern Stock IndexNOSIX98-0,416,313,314,30,12500No LoadBlend4
T. Rowe Price Equity Index 500PREIX95-0,516,213,214,10,162500No LoadBlend4
PIMCO Commodity Real Ret Strat InstlPCRIX6143,123,613,11,50,731000No LoadNat. Resources4
T. Rowe Price Dividend GrowthPRDGX851,514,513140,622500No LoadBlend4
Fundsmith Equity 0,195,979,4916,020,94100No LoadBlend4
Fidelity Global Dividend Fund2,65,266,1711,40,930No LoadBlend4
Ardevora Global Equity Funds02,926,7313,031,090No LoadGlobal Equity
Schroder Mid Cap US Fund07,326,613,421,830No LoadBlend
Invesco Perpetual Asian0,738,125,5510,531,70No LoadEquity

Conclusion

Investing in mutual funds is a great choice for investors to diversify their investment portfolio, get their investment managed by professionals and reach better liquidity.

The best mutual funds in UAE are Shelton NASDAQ-100 Index Direct, Voya Russell Large Cap Growth Index Fund, Fidelity NASDAQ Composite Index, Voya Russell Large Cap Index Port I and Fidelity 500 Index Fund.

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Stefan Grasic (Dipl.-Jur) is the World Wide Director of research for Buisness24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active Crypto, Forex and general investment researcher advising blockchain companies at their start up level. He keeps fit by mountain biking, surfing, skiing and lots of other adrenaline sports.