Global financial agencies have started launching investment funds with the aim of preserving both capital and income, with a large number of investors seeking high-quality investments that keep risks within reasonable limits.
NI-Capital, a subsidiary of the National Investment Bank (NIB), is following in the footsteps of these agencies. It has launched a new fixed income fund.
The fund, called ’15/30′, will invest in treasury bills and bonds, sukuks, bank deposits, and movable values. It will help generate a steady source of income for subscribers.
Such a fund will be a good chance for those who cannot recoup losses or face risks.
Fixed income funds are also a perfect option for those who seek investments with moderate risks, even with low returns.
These funds keep investors away from common economic risks, such as economic downturns and geopolitical events.
Minister of Planning, Hala el-Saeed, who doubles as the Board Chairperson of NIB, said NI-Capital has launched the ’15/30′ fund with a target issuance ranging between 50 and 100 million Egyptian pounds (between $32 million and $64 million).
She added a week ago that subscription in the fund would open on February 15.
The new fund, the minister said, goes ahead with the strategy of NI-Capital, which contributes to the achievement of financial inclusion, developing the capital market and meeting market needs and the requirements of its clients – both individuals and institutions.
Meanwhile, NIB CEO, Ashraf Negm, said the fund aims to support the national economy and the national sustainable development plan.
“It also aims to provide diversified non-banking financial services,” he said.
NI-Capital Managing Director and CEO, Mohamed Metwally, said the fund’s subscription applications would be available after the end of initial subscription operations on working days.
However, redemptions, he said, would be carried out only on the 15th and 30th of each month.
NI-Capital has already launched and managed various investment funds, such as ‘Siula’, the first bank in Egypt to invest in liquid and short-term financial instruments, including bonds; T-bills; banking deposits; deposit certificates, and other low-risk instruments.
The Siula fund achieved – by the end of 2021- the highest annual return in Egypt, amounting to about 4.5 billion Egyptian pounds (roughly $290 million).
It also launched the National Investment Charity Education Fund in 2021, with the aim of providing sustainable financing for educational projects, while managing charitable work.
The fund has so far reached 90 million pounds (around $5.8 million), according to the Ministry of Planning.
