Mutual Fund
صندوق استثمار
A mutual fund is a pooled investment vehicle that collects money from many investors and invests it in a portfolio of securities run by a professional fund manager. Investors own units (documents) of the fund rather than the underlying securities, and the unit price is derived from the fund’s net asset value (NAV). In Egypt, mutual funds are typically sponsored by banks and investment firms and are regulated by the Financial Regulatory Authority.
Example
A fund with 500 million EGP of assets and 50 million units outstanding has a net asset value of 10 EGP per unit. Subscribe with 10,000 EGP and you receive 1,000 units at that valuation.
Why it matters
A fund gives a small saver access to a diversified, professionally managed portfolio that would be impractical to assemble individually, and it prices units from the portfolio's own value rather than from what another buyer will pay.
A common mistake
Expecting a fund to be safe because it is diversified. Diversification reduces the risk of any single holding ruining you; it does not remove the risk of the whole market falling, and an equity fund falls when equities fall.
Live example from the Egyptian market
Pharos Investment Fund 1's NAV today is EGP 821.70 (as of 9 September 2026), with a +86.47% return over the last 12 months. Details →
Data as of ; refreshes with every session or disclosure.
See it in action