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NM Sharia Equity Fund: The First Shariah-Compliant Equity Fund on Thndr

NM Sharia equity fund

Get ready for the NM Sharia Equity Fund (NMF or Naeem Misr Fund),  the highest-performing Islamic equity fund in 2023. You can now invest in sharia-compliant stocks on Thndr with just a few clicks.  

Here’s everything you need to know!

NM sharia Equity fund information

What is the NM Sharia Equity Fund and how does it work?

It is an equity fund that aims to provide returns through investing in sharia-compliant stocks listed and traded on the EGX.  It was launched in 2011 and is categorized as a high-risk, high-return investment opportunity, offering daily subscription and weekly redemption. The fund is managed by NAEEM Financial Investment (NFI). 

Who manages the NM Sharia Equity Fund?

It is managed by Naeem Asset Management, a subsidiary of Naeem Holding, a renowned investment bank providing comprehensive financial services. Naeem Holding is listed on both the Egyptian Stock Exchange (EGX: NAHO EY) and the Dubai Financial Market (DFM: NAHO-DU). 

The fund operates under the supervision of a distinguished Sharia Board hired in accordance with the FRA regulations led by Dr. Ali Gomaa and Dr. Amr Mostafa Hassanen Refaay, and Al Sayed Ali Alsayed Mohamed AbdelMoteleb 

What does the NM Sharia Equity Fund invest in? 

The guidelines for the NM Sharia Equity Fund set the following limits:

      • Investment in Equity: Maximum 95%

      • Investment in Islamic Deposits : Cannot exceed 50%, with a minimum of 5%

    Adhering by the guidelines established by the appointed Sharia board, fund is prohibited from investing in companies that engage in the following activities:

        • Alcohol-related businesses

        • Pork or pig products

        • Conventional commercial banks

        • Insurance companies

        • Speculative currency trading

        • Gambling enterprises

        • Inappropriate advertising or promotion

        • Material related to adultery

        • Non-compliant meat processing methods according to sharia 

      To learn more about what the fund invests on , here is a link to the prospectus, which includes detailed information on the fund

      Why invest in the NMF?

          • Sharia-Compliant: the fund stands out as a sharia-compliant equity fund on Thndr, providing an effortless way to invest in compliant stocks.

            • Past Performance: According to the EIMA report as of December 31, 2023, NM Sharia Equity Fund emerged as the highest-performing Islamic equity fund in the last 12 months, outshining the competition. During 2023 its performance almost matched EGX30’s performance with a 64.90% increase.  

              • Expert Management: Backed by Naeem Asset Management, a subsidiary of Naeem Holding, NM Sharia Equity Fund benefits from professional expertise and a track record of managing billions of dollars for high-net-worth individuals and institutional investors.

            What are the risks?

                • Equity-Focused Fund: NM Sharia Equity Fund, being an equity-focused fund, is subject to market fluctuations and the inherent risks associated with the stock market. 

                  • Limited Securities: Given that it is Sharia compliant, the fund runs the risk of investing in limited securities because of its investment guidelines.

                What are the fees for investing in NM Sharia Equity Fund?

                The fund’s fees are divided into two categories: 

                Thndr Brokerage Commission:

                    • 0.1% of the value of each order (for buying or selling)

                    • EGP 2 per order (for buying or selling)

                  Fund Expenses:

                      • Total Expense Ratio:

                      • This is like a fee that the fund charges to cover its operating costs, like management and administration. In this case, it’s about 1.5%.

                      • Performance Fee: 

                      • This is a fee based on how well the fund does compared to a certain benchmark, which is the average return of sharia-compliant annual interest bearing accounts. If the fund does better than this benchmark, the manager gets an extra fee, which is 10% of the extra return above the benchmark.

                      • For example, if the fund makes 40% return and the benchmark is 10%, the extra return is 30% (40% – 10%). Then, 10% of that extra return, so 3%, goes to the manager as a performance fee.

                      • All these fund expenses are already included in the certificate price, so you as an investor in the fund will not see them. 

                    When can I invest in the NMF on Thndr?

                    It is considered a liquid investment that offers daily subscriptions and weekly redemption. 

                    Let’s start off with the subscription, you can start buying the fund certificates daily at 12:30PM at a minimum amount of 2 certificates and it takes 1 working day to execute. 

                    For redemptions, there is no minimum amount and the process occurs weekly on Thursdays at 12:30PM, with execution on the next working day with the following working day’s certificate price.

                    Have more questions about NM Sharia Equity Fund? You’ll find all your answers here

                    How can I invest in the NM Sharia 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 “NMF” or “صندوق نعيم أسهم شريعة”

                    Alternatively, use specific keywords such as “NM Sharia Equity Fund”  for easy access.

                    New to investing? No problem!

                    Thndr is the easiest way to become an investor in Egypt. As a matter of fact, 86% of all new entrants in the EGX in 2022  became investors through Thndr. Learn more about investing with Thndr here. 

                    If you’re interested in other sharia-compliant investing products, read more about the Misr Takaful Fund and AZG Fund on Thndrt