5 Best Mutual Funds to Invest in 2020
Mutual funds have been one of the popular forms of investment not just in the UAE but all across the globe. There are a plethora of reasons behind the evergreen popularity and reliability of mutual funds. They are safe, affordable, hold a low level of risk and come with the expert assistance of a fund manager.
Fund managers are expert financial professionals that assist investors to choose and invest in the best mutual funds in the UAE. With the right fund manager, you can target the right which eventually will yield profit in the form of dividends.
However, today the popularity of managers and their cult is fading due to low yields and strenuous struggle required in order to compete in the market. The primary objective of any investment plan is to yield lucrative returns. Very often, the wrong choice of mutual funds leads to financial losses that affect long term returns and corpus building.
If you are an investor who frequently invests their surplus capital in mutual funds we’ve come up with the list of handpicked best mutual funds in the UAE, that will help you to earn profit with low degrees of risk.
Dunn Capital is one of the best mutual funds in the UAE, that was founded by William Dunn in the year 1974. Dunn has been regarded as one of the finest investment bankers who was known for his investment decisions that relied entirely upon data sets and statistics and not partisanship.
Dunn capital has an excellent track record in the past and the fund lays emphasis on making money even during the phases when the market is down. One of the best examples of this is the inflation of 2008 where markets almost crashed with a drop of 40%, Dunn marked a growth of 15%.
The IG group that consists of its one operational unit in the UAE began in 1909 with the name of Scottish Mortgage managed by Oliver Smith. The operations of Scottish Mortgage are quite stable and firm in the UAE that makes it one of the best mutual funds in the UAE.
Scottish Mortgage is renowned and is also listed on the FTSE 100 which allows investors to easily invest in it via any website that offers share dealing services in the UAE with UK equities. The track record of Scottish Mortgage within the past five years has been beyond excellent and has marked an overall growth of 205% that makes it one the best mutual fund to invest in 2020.
Fundsmith Equity Fund
Fundsmith Equity fund is managed by Tom Anderson who is quite popular amongst the expatriate population in the UAE. The fund belongs to UCITS global fund run by renowned Terry Smith. Fundsmith Equity fund is known for investing in a very small fragment of premium quality, global organizations that have a considerable market hold and usually intend to stay in the show for a longer time. Some of the top holdings are Microsoft, Novo-Nordick, Amadeus, and Paypal. The market hold of the Fundsmith Equity fund is very strong in the US, UK and a limited portion of Europe. According to the popular website tustnet.com which displays authentic and realistic statistical figures the overall growth of the company is approximately 177% making it one of the best mutual funds.
Fidelity Global Dividend
Fidelity is probably one of the most well-known names in the field of finance not just in the UAE but worldwide. Investors looking forward to generating lucrative returns should go for Fidelity Global Dividend since it focuses on share price growth coupled with attractive dividend yields.
Some of the major holdings are Procter and Gamble, johnson & johnson, Royal Dutch Shell and Taiwan semiconductor manufacturing. Based on the current situation Fidelity global Dividend yields a return of 3 percent which indicates stability and steady flow of cash. The overall annual management charge of the Fidelity global dividend is 0.75% and the fund has grown by 102% with the past one year.
Ardevora Global Equity Fund
Ardevora Global Equity fund is quite popular amongst the best mutual funds in the UAE. It belongs to Irish domicile and is managed by Mr. Anderson who is a renowned name in the industry. The fund focuses on a bottoms-up approach during choosing the stocks. Approximately half of the total i.e. USD 1.14 billion is invested with the US with traces in Japan and Europe. With the period of the past five years, the fund has grown by 128% with an annual service charge equivalent to 1.58 percent.
In a Nutshell
Mutual funds have been the choice of investors since times immemorial due to obvious reasons. The form of investment allows users to experiment and diversify their portfolio allowing them to get a better understanding of the nuances of the finance and investment sector. With the best five mutual funds to invest in the UAE, you can invest and generate wealth easily.