Global Courant 2023-05-15 12:16:42
Egypt’s financial regulatory authority approved the creation of the country’s first fund to invest in gold, improve financial and investment inclusion, and build an advanced non-banking financial sector that is inclusive and drives economic growth.
What is a gold mutual fund?
The Gold Investment Fund is a license granted by the FRA to a company to sell gold investment securities backed by gold reserves by doing business with companies that buy, sell, store and safeguard gold savings.
The company must be licensed by FRA as this guarantees the client the highest level of trust, transparency and protection of their gold savings.
According to Ahmed Abul-Saad, an expert in fund management and stock portfolios, the steps to invest in gold investment stocks are as follows:
1- Open an account and submit a purchase request to the receiving parties, including Azimut Egypt for fund and securities portfolio management, and a number of securities trading companies.
2- Transfer money.
3- The receiving parties transfer the money in az-gold documents
Steps to Recover Gold Investment Documents:
1- Submit a refund request to the above recipients.
2- Determine the reimbursement in cash or in kind.
3- Refund and settlement within two business days before settlement.
4- Receipt of gold with a minimum of 50 grams.
Gold investment fund details
According to Abul-Saad, the receiving parties convert the subscribers’ capital in the documents into gold by doing business with companies that are licensed to carry out buying and selling activities and are registered with FRA.
The documents that can be bought and sold online through receiving companies – including securities brokerage firms – guarantee the highest level of security.
The FRA requires gold insurance by Egyptian companies registered in the authority’s records to conduct insurance business.
This guarantees the highest security rates for customers, and also attracts the largest segment of those who want to save, as the price of the document starts from LE10.
Why has the fund been launched now?
Abul-Saad explained that the launch of the gold investment fund now comes in light of many people’s desire to invest in gold with their inability to buy in the face of high prices as the fund made the document available from £10 .
It also aims to ensure financial solvency for those wishing to invest in gold, from carrying cash or gold, and exposure to fraud or theft, and creating an organized alternative to the traditional gold market.
According to FRA, Resolution No. 50 of 2023 authorized the Board of Directors of the Minerals Investment Fund, or the Fund’s Operations Oversight Committee, to enlist the assistance of one of the registered providers of mineral preservation services.
The resolution also requires the fund’s asset manager to trade, buy and sell minerals through entities registered in the FRA’s records and subject to controls established by the authority.
The purpose of the fund is to provide the government with a copy of the contract concluded between it and the aforementioned service providers, without prejudice to their obligations in this respect.
The ‘minerals-az’ fund aims to provide an appropriate return for investing in various precious metals in accordance with the investment policy of each tranche, enabling immediate investments with high liquidity and low costs.
The fund aims to invest in gold (via physical investment in bars) so that the net asset value of the fund is calculated based on the gold price announced by the Egyptian Stock Exchange.
