10 Best Mutual Funds in UAE to Invest, 2025

What are Mutual Funds?

A mutual fund is an investment vehicle in which money from many investors is combined to purchase various assets. These funds are managed by professional asset managers who aim to generate returns in line with the fund’s objective, whether it’s growth, income, or capital preservation. In the UAE, mutual funds are a popular option for those seeking long-term wealth accumulation with comparatively lower risk than direct stock investments.

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Here’s a curated list of some of the top-performing and popular mutual funds in UAE:

Top 10 Mutual Funds in UAE for 2025
Shelton NASDAQ-100 Index Direct (NASDX)	Fidelity Global Dividend Fund
Voya Russell Large Cap Growth Index Fund (IRLNX)	Fundsmith Equity Funds
Fidelity NASDAQ Composite Index (FNCMX)	Fidelity Emerging Market Funds
Voya Russell Large Cap Index Port I (ILRX)	Schroder ISF US Large Cap
Fidelity 500 Index Fund (FXAIX)	Invesco Perpetual Asian

*UAE Mutual Fund Returns are subject to change. Always verify current performance before investing.

Best Mutual Funds in UAE

Here is a list of the best mutual funds in UAE —

1. Shelton NASDAQ-100 Index Direct (NASDX)

This fund aims to mirror the performance of the Nasdaq-100 Index, which tracks 100 of the largest non-financial companies listed on the Nasdaq Stock Market. It is a passively managed index fund, meaning it simply follows the index rather than actively selecting stocks. At least 80% of its assets are invested in the same companies found in the index.

Key holdings:  Apple Inc (9.37%), Microsoft Corp (7.79%), and NVIDIA Corp (7.41%), all leaders in the technology sector.

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

This passively managed fund aims to match the returns of the Russell Top 200® Growth Index. It invests at least 80% of its assets in the index’s large-cap growth companies. The portfolio may also include derivatives or ETFs linked to the same index. 

Top holdings: Apple (10.99%), Microsoft (10.43%), and NVIDIA (9.09%), reflecting its focus on dominant tech giants.

3. Fidelity NASDAQ Composite Index (FNCMX)

The Fidelity NASDAQ Composite Index Fund (FNCMX) tracks the NASDAQ Composite Index. This is among the best mutual funds in UAE if you want to invest in tech and non-financial sectors.

Top holdings: Taiwan Semiconductor (6.53%), Microsoft (5.83%), and Apple (4.38%). This fund is actively managed and tech-centric, focusing on innovation leaders.

It has shown a year-to-date return of 6.35% and a five-year average return of 17.24%. The fund experienced significant growth in 2023 with a best annual return of 45.13% — this happened despite a challenging 2022, where it faced a -32.39% return.  On the whole, this performance reflects the tech market's volatility and growth potential.

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

This mutual fund in UAE aims to match the total return of the Russell Top 200 Index, which includes large-cap U.S. companies. It invests at least 80% of its assets in stocks from the index, convertible securities, or ETFs tracking the same. It provides broad exposure to top U.S. tech and consumer giants.

Top Holdings: Apple (7.74%), Microsoft (7.26%), and NVIDIA (6.30%)—highlighting strong exposure to leading U.S. technology stocks.

As of the end of February 2024, the fund has seen a significant one-year change, indicating a positive performance within the said time frame.

5. Fidelity 500 Index Fund (FXAIX)

This is one of the best mutual funds in UAE that seeks to replicate the performance of the S&P 500 Index, offering exposure to 500 of the largest U.S. companies. It invests at least 80% in common stocks and lends securities to generate income.

Top Holdings: Apple (7.01%), Microsoft (5.86%), and NVIDIA (5.57%)—focused on U.S. market leaders with consistent growth.

In 2023, the fund notably achieved a 26.29% return, recovering from a challenging 2022 where it saw an -18.13% return. 

6. Fidelity Global Dividend Fund

Focused on global dividend-paying stocks, this best performing mutual fund in UAE aims for long-term capital growth and consistent income. It invests at least 70–75% in income-producing equities worldwide, including emerging markets, with a focus on high-quality companies.

Top Holdings: Unilever (4.00%), Munich Re (3.92%), and National Grid (3.16%)—strong global firms with stable dividend histories.

7. Fundsmith Equity Funds

Fundsmith focuses on long-term global growth, investing in quality companies with a strong track record. It avoids short-term trading and prefers to hold stocks for the long term. This fund blends tech and healthcare to deliver sustained performance.
Top holdings: Meta Platforms (9.40%), Microsoft (8.94%), and Novo Nordisk (6.50%)

8. Fidelity Emerging Market Funds

This fund invests in 30–50 carefully selected companies from emerging markets, focusing on those with strong governance and growth potential. It avoids following a benchmark and instead uses a bottom-up stock-picking strategy. It targets companies across Asia, Africa, Latin America, and the Middle East. 

Top holdings: Naspers (8.61%), Taiwan Semiconductor (7.14%), and Samsung Electronics (3.73%)

9. Schroder ISF US Large Cap

Actively managed by Frank Thormann, this fund focuses on large U.S. companies and seeks to outperform the S&P 500 over 3–5 years. At least two-thirds of its assets are invested in companies that rank among the top 85% of the U.S. market by size. Its well-structured approach aims for steady capital growth. 

Key holdings: Microsoft (7.04%), Alphabet Class A (5.08%), and Netflix (4.39%), spanning tech and communication sectors.

10. Invesco Perpetual Asian

This fund seeks long-term capital growth by investing at least 80% of assets in companies across Asia and Australasia (excluding Japan). It may also hold cash, bonds, or other funds. It comes with typical emerging market risks, such as liquidity and regulatory uncertainties. 

Key Holdings: The top stocks in the portfolio are Taiwan Semiconductor (8.20%), Tencent (5.40%), and HDFC Bank (4.84%), offering strong exposure to Asian tech and financials.

Why Consider Mutual Funds in UAE?

Mutual funds are ideal for the UAE residents and NRIs who —

• Want a diversified portfolio without picking individual stocks
• Prefer professional fund management
• Seek long-term wealth creation
• Want flexible investment options like SIPs (Systematic Investment Plans) or lump-sum contributions

Key Advantages:

• Diversification across multiple asset classes and markets
• Professional Management by experienced fund managers
• Liquidity, allowing you to buy or sell units anytime
• Accessibility through local banks and online investment platforms like Policybazaar.ae
• Regular Systematic Investing and withdrawals to make regular payments to save regularly

Types of Mutual funds

Mutual funds in Dubai fall under several categories. Here's a breakdown —

Mutual Funds Regulatory Update (Effective April 1, 2024)

The UAE Securities and Commodities Authority (SCA) has implemented new regulations to choose the best mutual funds in UAE —

• Foreign mutual funds are limited to private placement for Professional Investors (with AED 4 million+ in net assets)
• Locally domiciled funds can be publicly offered to Retail Investors
• Investors must confirm their classification (Professional vs Retail)

This regulatory change makes locally available funds more important for retail investors. Always check whether your chosen fund complies with the latest regulations. 

How to Choose the Best Mutual Funds in UAE?

To enjoy the best UAE mutual fund returns that match your financial goals, consider the following —

1. Identify Your Investment Goals

Are you investing for retirement, wealth growth, income, or capital preservation?

2. Risk Appetite

• Low risk? Opt for the money market or bond funds
• High growth? Consider equity or sectoral funds

3. Choose Active or Passive Strategy

• Active Funds aim to outperform the market but often come with higher fees
• Passive Funds track indices and have lower costs

4. Review Past Performance & Returns

Look at UAE mutual funds returns over 1-year, 3-year, and 5-year periods to gauge consistency.

5. Check Expense Ratios

Fees can eat into your returns. Aim for funds with competitive expense ratios.

6. Use SIP for Regular Investment

If you prefer not to invest a lump sum, Systematic Investment Plans (SIPs) allow you to invest monthly. You can use a SIP calculator to estimate your future returns.

Where to Invest in Dubai Mutual Funds?

You can invest in Dubai mutual funds through:

• Banks like HSBC, Citibank, Emirates NBD, Mashreq, and FAB
• Online platforms like Saxo Bank, Policybazaar.ae, and eToro
• Wealth management firms and financial advisors

These platforms also offer helpful tools like fund screeners, SIP calculators, and portfolio rebalancing options to optimise your investment strategy.

Use of SIP Calculator in Mutual Funds

A Systematic Investment Plan (SIP) calculator is a tool that helps investors estimate the potential returns of their mutual fund investments over time. By entering details such as the monthly investment amount, expected rate of return, and investment duration, the SIP calculator provides an estimate of the total amount invested and the potential corpus at the end of the term.

Use our SIP calculator to calculate your estimated returns or how much to invest in mutual funds in Dubai.

Final Thoughts: Are Mutual Funds a Good Investment in the UAE?

Absolutely—mutual funds in UAE are among the most versatile and beginner-friendly investment options. With a wide variety of fund types, low barriers to entry, and regulatory clarity, they are well-suited for both conservative and aggressive investors.

To make informed decisions, use tools like SIP calculators, consult with advisors, and leverage platforms like Policybazaar.ae to compare and invest in the best mutual funds in UAE that align with your financial goals.

Start your investment journey today with the right mix of mutual funds in UAE. Diversify wisely, review regularly, and invest smartly.

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