EFG Hermes, one of Egypt’s leading investment banks, has launched five of its mutual funds on the EFG Hermes ONE app, removing the barrier that has long kept institutional-grade investment products out of reach for everyday investors. The move provides direct access to professionally managed funds covering a range of risk profiles, from money markets to Shariah-compliant equities, all through its digital platform.
Quick Facts
- Five institutional funds now on EFG Hermes ONE app.
- Funds cover diverse assets like gold, equities, and USD bonds.
- First-time access for retail investors to these products.
Bridging the Gap for Egyptian Investors
For years, Egyptian retail investors faced a limited set of options for managing their savings, often defaulting to savings accounts, direct stock trading, or physical gold. Each of these tools comes with significant drawbacks, from low real returns in high-inflation environments to the need for deep market expertise and logistical challenges.
The launch of these five funds on a single mobile app fundamentally alters this equation. It offers a diversified, professionally managed alternative for investors looking to manage short-term cash, gain exposure to USD-denominated assets, or build long-term equity portfolios without needing to become active stock-pickers.
A Look at the Five Newly Accessible Funds
EFG Hermes has curated a selection of five funds to cater to distinct investment goals and risk appetites:
- Money Market Fund (EFG Hermes MM): Focused on capital preservation and liquidity, this fund targets competitive yields with low volatility. It offers an annualized return of 18.37%, making it a strong option for managing short-term savings.
- USD Fixed Income Fund (EFG Hermes FI USD): This fund holds USD-denominated assets, including Egyptian Eurobonds, allowing investors to manage currency risk and gain exposure to hard-currency instruments.
- Gold Fund (EFG Hermes GLD): Offering exposure to physical gold through a regulated fund structure, this product removes the complexities of direct ownership by using institutional vaulting arrangements that meet international standards.
- Equity Fund (EFG Hermes EQ): An actively managed portfolio of Egyptian-listed stocks, this fund is designed for investors seeking long-term capital growth through professional stock selection.
- Islamic Equity Fund (EFG Hermes EQ Shariah): This fund uses the EGX 33 Shariah Index as a benchmark and applies active management within a Shariah-compliant framework to target long-term growth.
A Structural Shift in Egypt’s Investment Market
By democratizing access to its asset management expertise, EFG Hermes is initiating a structural shift in how professional investment services reach Egyptian savers. The move transforms the EFG Hermes ONE app from a simple brokerage tool into a more comprehensive investment platform, promoting greater financial inclusion by lowering entry barriers.
“By making these funds available through EFG Hermes ONE, we are giving more people a straightforward way to access institutional-quality investment solutions,” said Karim Zaafan, Managing Director at EFG Hermes Asset Management. “Our goal is to empower investors with options that cater to a broad spectrum of risk appetites without requiring a large starting amount.”
This expansion of regulated, accessible fund products is also a key development for Egypt’s capital markets, potentially deepening market participation by bringing a new wave of retail investors into the fold over the long term.
About EFG Hermes
EFG Hermes is a leading investment bank in the Middle East and North Africa, providing a wide range of financial services that include asset management, investment banking, brokerage, and private equity. Headquartered in Egypt, the firm serves a diverse client base of corporations, institutional investors, and high-net-worth individuals across frontier and emerging markets.
Source: Waya
