Investment fund units rise to 52.5 billion, with individuals holding about 80% of them - private equity funds and index funds lead average returns in the third quarter at 15.2% and 13.0%

The Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has issued its quarterly performance report on investment funds, tracking market developments through the end of the third quarter of 2026. The report shows continued strong growth in assets, which have now topped half a trillion pounds, a steady expansion of the investor base, and a rise of more than 19% in the number of units compared with the second quarter, reflecting the growing role of investment funds as one of the most important investment tools in the Egyptian market. The report showed that the total number of funds, across their various issues, rose to 232 at the end of September 2026, up from 224 at the end of the second quarter. Dr. Islam Azzam, Chairman of the FRA, said that the funds' continued growth and their net assets breaking the half-trillion-pound barrier reflect the success of the authority's ongoing efforts to create a supportive legislative and regulatory environment and to develop the infrastructure of non-bank financial activities. He noted that the range of investment tools and products is now wider than ever, from equity and money market funds to precious metals, private equity, index and real estate funds. This gives investors of all segments innovative savings and investment channels that meet their aspirations and provide effective mechanisms for spreading risk and achieving sustainable returns, supporting the stability of the national economy and boosting financial and investment inclusion in Egypt. The report said total net assets of investment funds reached EGP 504.71 billion at the end of September 2026, compared with EGP 470.97 billion at the end of June, an increase of EGP 33.74 billion, or growth of about 7.16% during the third quarter. Pound-denominated assets stood at EGP 470.10 billion, while the equivalent value of assets denominated in foreign currencies was about EGP 34.60 billion, reflecting continued diversification in the funds' investment portfolios. Total assets under management also rose to about EGP 512.84 billion at the end of September, compared with EGP 478.10 billion at the end of the second quarter, a growth rate of about 7.27%. The number of investment fund units kept rising, reaching 52.50 billion units at the end of September, compared with 44.04 billion at the end of June, growth of about 19.21% in 3 months. The report showed that individuals continued to hold the largest share of fund units, with a total of 41.90 billion units, or 79.8% of all units, while legal entities held 10.16 billion units, or 19.4%. Units set aside by the founding entity for the fund's account accounted for 0.8% (about 441.7 million units). In terms of investment performance and average returns in the third quarter of 2026, private equity funds topped the list with an average return of 15.24%, followed by index funds at 13.03%, then sector funds (which concentrate their money in a single sector) at 12.23%, precious metals funds at 8.23%, Islamic equity funds at 8.00%, transferable securities funds at 6.76%, then thematic funds (which focus on specific companies within sectors related to information technology, fintech and innovation) at 5.68%, and equity funds at 5.55%. These positive indicators reflect growing confidence in investment funds and the steady expansion in the launch of new investment products under full supervision, as the FRA works to deepen non-bank financial markets and provide a variety of investment vehicles that meet the needs of different investor segments, helping to boost the appeal of the Egyptian capital market.