Looking to invest in mutual funds in the UAE? Find the top 5 performing mutual funds, their returns, risk rating, and features. Also, learn how to invest online.
Mutual funds are becoming one of the most popular ways to invest in the UAE. And it is not hard to see why.
You don’t need to be an expert or watch the market every day. Mutual funds let you invest in a mix of assets like stocks or bonds through a single fund that is managed by professionals.
If you are planning to invest in mutual funds, we will make the research part easier. In this blog, you will find the top 5 mutual funds in UAE, how they perform, and what you need to know before investing.
Fun fact
According to the UAE’s Securities and Commodities Authority (SCA) , over 30 mutual funds are now registered locally. This gives investors easy access to both local and international markets
Why mutual funds are catching on in the UAE?
Investing sounds stressful, right? But mutual funds take out most of the hassle. And that is exactly why more people in the UAE are going this route.
Instead of buying individual stocks or bonds, mutual funds let you invest in a whole basket of assets at once.
It spreads the risk.
It also saves time.
You don’t need to track every market move. A fund manager does that for you.
And here’s something important – As of April 2024, the UAE’s Securities and Commodities Authority (SCA) made new rules to protect everyday investors.
Now, only funds that are registered locally can be publicly offered to retail investors. That means UAE residents have access to regulated and safer options without needing to dig into offshore funds.
Want to start with a small amount? Some platforms like Standard Chartered UAE lets you invest with as little as AED 1,000. That is how easy it is to begin.
Top 5 mutual funds in the UAE
These five mutual funds have shown strong past performance and are available for UAE investors. We have picked a mix of growth-focused and income-generating funds – so there is something for every goal.
| Fund Name | Fund Type | 1-Year Return | Risk Rating | Expense Ratio |
| BlackRock Global Funds – World Financials Fund A2 | Equity (Sector-based) | 57.46% | High | 1.80% |
| Allianz Global Intelligent Cities Income Fund (AMg USD) | Hybrid (Equity + Bonds) | 24.04% | Moderate | 1.65% |
| Schroder International Selection Fund China A A Accumulation USD | Equity (China A-Shares) | 23.87% | Medium-High | 1.84% |
| Invesco Global Consumer Trends Fund A (EUR Hedged) Accumulation EUR | Global Equity (Consumer Focus) | 53.52% | High | 1.50% |
| AB – Emerging Markets Multi-Asset Portfolio A Acc | Multi-Asset (Emerging Markets) | 14.78% | Moderate | 1.88% |
1. BlackRock Global Funds – World Financials Fund A2
This is an equity mutual fund managed by BlackRock that invests primarily in companies within the global financial sector. That includes big banks, insurance firms, payment companies, and financial technology players.
It is managed by Vasco Moreno, who has been handling this fund since May 2015. The fund also follows ESG investing principles. It is part of BlackRock’s large fund ecosystem and is available globally, including for UAE investors.
Performance
It is a high-growth fund that has outperformed in recent years.
1-year return: 57.46%
3-year return: 30.89%
5-year return: 21.00%
2024 calendar year return: 30.94%
2023 calendar year return: 27.86%
Features
This fund is not for someone looking for monthly income or a stable return. It is designed for long-term capital growth and performs best when the global financial sector is booming.
Invests at least 70% in financial sector stocks globally
ESG-compliant investment process
Heavy exposure to US banks and financial institutions
Includes up to 20% exposure to China via Stock Connect
Risk rating is very high
Expense ratio: 1.80%
Managed by one of the top global asset managers (BlackRock)
Top holdings
Bank of America
Citigroup
Goldman Sachs
PayPal
UBS Group
Wells Fargo
This is one of the best mutual funds for growth-focused investors who are okay with short-term ups and downs.
How to invest
You can invest in this fund through UAE banks like Standard Chartered or global platforms that offer mutual funds. Just log in to your investment account, search for “BlackRock Global Funds – World Financials Fund A2”, and contact the team to place your order.
2. Allianz Global Intelligent Cities Income Fund (AMg USD)
This one is different. It is a thematic hybrid fund that invests in both stocks and bonds. The focus is on companies shaping the future of smart cities, like – technology, infrastructure, automation, and urban innovation.
Managed by David Oberto since 2021, the fund is designed to give investors a mix of growth and regular income. It is part of the Allianz Global Investors AE feeder fund range and accessible in the UAE.
Performance
1-year return: 24.04%
3-year return: 9.40%
2024 return: 13.54%
2023 return: 17.38%
It also pays a monthly dividend with a yield of 7.60%, which is a standout feature for income seekers.
Key features
Thematic focus on smart cities
Invests roughly 49% is in equities
Asset mix: stocks, bonds, convertibles
Monthly dividend payouts
ESG-focused portfolio
Risk rating is moderate
Expense ratio: 1.65%
Top holdings
Broadcom Inc.
Meta Platforms Inc.
NVIDIA Corp
Hitachi Ltd
Cloudflare Inc.
Amphenol Corp
3. Schroder International Selection Fund China A A Accumulation USD
The Schroder International Selection Fund China A A Accumulation USD is an equity mutual fund focused on the Chinese A-shares market. It invests primarily in large and mid-cap companies across key Chinese industries, tracking the MSCI China A Onshore NR USD index. The fund aims for long-term capital growth by tapping into China’s expanding domestic economy.
Performance
1-year return: 23.87%
3-year average return: 8.29%
2024 return: 1.97%
It is also highly liquid and available through major UAE platforms and banks.
It is ideal for investors looking for China-focused exposure with long-term growth potential.
Key features
Invests primarily in China A-shares (onshore equity market)
Managed by Jack Lee (since 2017)
Daily dealing frequency
Benchmark: MSCI China A Onshore NR USD
Expense ratio: 1.84%
Risk rating: 5
Top holdings
Contemporary Amperex Technology Co Ltd – 5.90%
Hubei Dinglong Co Ltd – 2.96%
China Merchants Bank Co Ltd – 2.93%
Zijin Mining Group Co Ltd – 2.91%
Ping An Insurance (Group) Co of China Ltd – 2.79%
4. Invesco Funds – Invesco Global Consumer Trends Fund A (EUR Hedged) Accumulation EUR
This is a globally diversified fund focused on companies that cater to consumer needs and lifestyle spending. It invests in industries such as technology, retail, automobiles, and media. The fund tracks the MSCI World/Consumer Disc NR USD index and aims to deliver long-term capital growth through exposure to leading global consumer brands and platforms.
Performance
1-year return: 53.52%
3-year average return: 26.97%
5-year average return: 2.97%
2024 return: 23.25%
2023 return: 22.07%
Best suited for investors seeking exposure to global consumer and technology-driven businesses.
Key features
Global exposure across consumer-focused sectors
Managed by Ido Cohen (since 2011)
Benchmark: MSCI World/Consumer Disc NR USD
Daily dealing frequency
Expense ratio: 1.50% (management fee)
Risk rating: 5
Top holdings
Tesla Inc – 9.94%
Amazon.com Inc – 8.36%
Meta Platforms Inc – 7.60%
AppLovin Corp – 4.95%
NVIDIA Corp – 4.20%
5. AB – Emerging Markets Multi-Asset Portfolio A Acc
The AB Emerging Markets Multi-Asset Portfolio A Acc is a balanced fund investing across equities and fixed income instruments from emerging markets. It aims for long-term capital appreciation with moderate volatility, offering diversified exposure across regions such as Asia, Latin America, and Eastern Europe.
Performance
1-year return: 14.78%
3-year average return: 20.03%
5-year average return: 5.81%
2024 return: 13.56%
2023 return: 15.68%
This fund is suitable for investors looking for a balance between growth and income through exposure to emerging markets.
Key features
Global emerging markets allocation fund
Managed by Christian DiClementi (since 2021)
Balanced exposure: 64% equities, 24% bonds, 11% cash
Benchmark: MSCI EM NR USD
Expense ratio: 1.88%
Risk rating: 4
Top holdings
Taiwan Semiconductor Manufacturing Co Ltd – 5.99%
Tencent Holdings Ltd – 5.03%
U.S. Treasury Bills – 4.93%
Samsung Electronics Co Ltd – 3.27%
ICICI Bank Ltd – 1.54%
How to choose the right mutual fund?
Use this checklist to choose the best mutual funds in UAE. Just answer these questions to shortlist the options.
What is your goal?
Are you saving for retirement or looking for regular income?
How long will you invest?
Longer time frames allow more risk. Shorter ones need more stability.
How much risk can you handle?
Some funds, like BlackRock World Financials, tend to swing more, while others, like the Allianz Income Fund, are steadier.
How was the past performance?
Look at past performance, but don’t rely on it blindly. Check who manages the fund. And always read the factsheet.
Want help estimating your potential return?
Use a mutual fund calculator – just plug in how much you plan to invest and for how long. It will show you what your money might grow into.
Also, don’t forget fees. Even a small difference in expense ratio can affect your return over 5 to 10 years.
How to invest in mutual funds online in the UAE?
You don’t need to walk into a bank or hire a private advisor to start investing anymore. You can do it online in just a few steps.
1. Choose an investment platform
Many UAE banks like Standard Chartered let you invest in mutual funds through their online banking apps. You can also explore international platforms that allow UAE residents.
2. Open an investment account
Complete basic KYC steps and link your bank account.
3. Search for the fund
Use the fund’s name or code in the fund search section.
4. Place your order
Choose between a one-time investment or set up a SIP for regular monthly investing.
5. Track and manage online
You can monitor performance, set alerts, or even switch funds anytime.
Note: Make sure to read the fund factsheet before investing. If you are unsure, many platforms offer a call-back or advisor chat option.
FAQs
What is mutual fund and how does it work?
A mutual fund is a pool of money collected from many investors. That money is then invested in stocks and bonds. A professional fund manager decides where the money goes. When the assets grow, so does your share of the fund. You don’t need to manage anything yourself.
Can I invest in mutual funds in the UAE as an expat?
Yes. Expats can easily invest in mutual funds in UAE through local banks or licensed investment platforms. Most major banks offer both international and UAE-domiciled funds to residents.
What are the best mutual funds for beginners in the UAE?
The Allianz Global Intelligent Cities Income Fund (AMg USD) is great for beginners seeking steady monthly income with moderate risk. For growth-focused investors, the BlackRock Global Funds – World Financials Fund A2 offers global exposure to leading financial companies.
How do I use a mutual fund calculator?
A mutual fund calculator helps you see how your money could grow over time. You enter your investment amount, expected return rate, and duration. The tool then shows your future value.
How do I invest in mutual funds online in the UAE?
Open an account with a UAE bank or investment platform. Search for top mutual funds you want. Decide the amount and invest – either all at once or monthly. That is it. You can invest in mutual funds online without needing paperwork or in-person visits.
