Looking for a new Sharia-compliant investment to add to your portfolio? Well, we might just have your next favorite product in store! From the same asset manager that gave you 70% returns on AZO, Azimut Egypt presents to you AZ Sharia Opportunities (ASO).
This high -risk, open-ended equity fund actively invests within the EGX 33 Sharia Index, backtracking the index progress, it saw a 179% increase since 1 Jan 2022 till 1 Aug 2024, giving you a 49% compound annual return
Now, let’s make sure you have all the info!
What is the AZ Sharia Opportunities Equity Fund and How Does It Work?
AZ Sharia Opportunities is an equity fund that aims to provide returns through actively investing in the constituents of the EGX 33 Sharia Index Fund.
Active investing… What does that mean?
Think of it like this, the AZ Sharia Opportunities is basically the Sharia-compliant sister for AZO. The fund does not just blindly follow the index and invests in all 33 companies, but rather the managers at Azimut analyze and pick and choose which companies to invest in within these 33 Sharia-compliant companies based on their investment strategies.
The fund is categorized as a high-risk, high-return investment opportunity, offering daily subscription and redemption, meaning that you can see your returns grow daily, put in or take out you money whenever you like.
Who Manages the AZ Sharia Opportunities Equity Fund?
ASO is managed by Azimut Egypt Asset Management, one of the largest asset managers in Egypt. With over 20 years of experience and assets under management exceeding EGP 10 billion, you can sleep tight knowing that your money is in expert hands.
What Does the AZ Sharia Opportunities Equity Fund Invest In?
The fund focuses on investing in the constituents of the EGX 33 Sharia index, which includes the most liquid, meaning the most traded, 33 Egyptian companies that are Sharia compliant as designated by the EGX.
This means no investments in companies involved in traditional banking, traditional insurance, the sale of alcohol, pork, or cigarettes, gambling, and media.
The EGX 33 Sharia index represents 15 different sectors such as telecom, real estate and banking, ensuring a diversified investment portfolio and the relative weight of any company cannot exceed 15 percent of the index.
These are the fund’s investment guidelines in more detail:
- No more than 15% of the fund’s assets can be invested in the shares of a single company, and this investment should not exceed 20% of that company’s shares.
- No more than 20% of the fund’s assets can be invested in the investment certificates of a single fund, and this investment should not exceed 5% of the total certificates of that fund.
- Investments in securities issued by a related group should not exceed 20% of the fund’s assets.
- Trading in the same session should not exceed 15% of the fund’s daily trading volume.
To learn more about what the fund invests on , here is a link to the prospectus, which includes detailed information on the fund or you can head to Rumble for a more in depth analysis of the EGX33 index.
Why Invest in the AZ Sharia Opportunities Equity Fund?
Sharia Compliant:
The fund stands out as a Sharia-compliant (as designated by the the EGX) equity fund on Thndr, providing an effortless way to invest in compliant stocks.
Diversified Portfolio:
We always say to never put all your eggs in one basket, and the EGX 33 Sharia Index follows the same approach, as it represents 15 different sectors, making sure you have a well diversified investment portfolio.
Expert Management:
Managed by Azimut Egypt Asset Management, one of the largest asset managers in Egypt, you can sleep well knowing that your investment is in good hands.
So, what are the risks?
Equity-Focused Fund:
AZ Sharia Opportunities is an equity-focused fund, subject to market fluctuations and the inherent risks associated with the stock market.
Limited Securities:
Given its Sharia compliance, the fund runs the risk of investing in a limited number of securities because of its investment guidelines.
What Are the Fees for Investing in AZ Sharia Opportunities Equity Fund?
Besides the regular Thndr fees of EGP 2 + 0.1% on every buy and sell order, ASO also has a redemption fee of 2% that is amortized over 3 years, similar to AZO.
What does it mean that the fees are amortized?
Early sale fees for ASO can be up to 2% of your investment value, spread over three years. This means the longer you hold onto your investment, the lower the fees you pay when you sell.
Here are some simple examples:
If you sell after 1 year, the fee is 1.3%.
If you sell after 1.5 years, the fee is 1%.
If you hold for 3 years, there’s no fee at all.
When Can I Invest in the AZ Sharia Opportunities Equity Fund on Thndr?
ASO is considered a liquid investment that offers daily subscription and daily redemption.
Subscription and redemption have the same rules. If you place a buy/sell order for the fund certificates before 2:00 PM, it will be sent to Azimut on the same day but executed the next day at the new certificate price.
If you place any buy/sell orders after 2:00 PM, it will be sent to Azimut the next working day, and your order will be executed two days after the day it was submitted at the new certificate price.
How Can I Invest in the AZ Sharia Opportunities Equity Fund?
It only takes a few taps!
To find the fund on Thndr you can check out our ‘Mutual Funds’ and ‘Sharia’ themes.
You can also search “ASO ” or “ صندوق أزيموت فرص الشريعة”
Interested in more Sharia Compliant Products? Thndr’s got you covered!
We have a whole Sharia-ompliant supermarket right at your fingertips.
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