The Financial Regulatory Authority (FRA), chaired by Islam Azzam, has issued its first report on the performance of investment funds operating in the Egyptian market during the first quarter (Q1) of 2026, revealing strong growth that reflects rising demand for investment funds as one of the key investment instruments in Egypt.
According to the report, the net assets of investment funds rose to EGP 410.6bn in March 2026, compared with EGP 316bn in December 2025. The increase was driven by the launch of new funds, growth in the investor base, and the diversification of available investment products.
The report showed that the number of investment funds operating in the Egyptian market increased to 187 in Q1 2026, up from 172 in last year. The growth reflects the continued expansion of the asset management sector and the broader efforts by financial institutions to offer diversified investment products tailored to different investor segments, particularly amid ongoing regional and global economic changes.
The number of investment fund certificates also rose sharply to 31.4 billion units in March 2026, compared with 20.3 billion units in December 2025, indicating growing investment awareness and a widening investor base.
Individuals continued to account for the largest share of investment fund certificates at 74.34%, while legal entities, including companies and institutions, represented 15.98%, underscoring increasing confidence in funds as regulated and relatively secure investment vehicles overseen by the FRA.
In terms of asset distribution, Egyptian pound-denominated money market funds recorded the highest net asset value at EGP 276.5bn, followed by equity funds with net assets of EGP 56.4bn.
Precious metals funds also posted strong growth, with net assets rising from EGP 5.1bn in 2025 to more than EGP 10bn in Q1 2026, reflecting sustained investor demand for gold and precious metals-linked instruments.
The report further indicated that several fund categories achieved competitive returns during the quarter. Precious metals funds led performance with an average quarterly return of 20.37%, followed by index funds at 7.54% and private equity funds at 7.21%.
Commenting on the results, Azzam said the positive indicators achieved by investment funds during the first quarter reflect the resilience of the Egyptian economy despite regional and international tensions, as well as the growing attractiveness of the non-banking financial sector.
He added that the sector continues to demonstrate its ability to provide diversified and secure investment instruments that meet the needs of different categories of investors.
Azzam also said the FRA remains committed to developing the regulatory, supervisory and legislative frameworks governing investment funds to enhance transparency, efficiency and investor protection, while supporting innovation in non-banking financial products and expanding the use of financial technology.