Investment Idea in Oman

Mutual Fund Investment in Oman

If you are working or on a family residence visa in Oman and you are trying to find ideas on how you will grow your savings, here is one good idea.

There are some investments opportunities that Bank Muscat offers not only to their locals but also for expatriates.

Mutual Funds which I find quite affordable and best for new investors are:

          ·        Muscat Fund                          ·        Oryx Fund

Banks do not usually announce this to public but if you come to know about it, you could drop by to any of their branch for inquiries.

Following are the important things to know before investing in Bank Muscat Mutual Fund:

·        A minimum investment of ^OMR50.000 per month, to be debited directly from your bank account. It is advisable that you open an account with Bank Muscat to avoid bank transfers fee.

·        Date of investment is either every 15^th day or every 30^th day of the each month. Which is ever is convenient for you.

·        Bank will send you a Mutual Fund statement of account on a monthly basis.

·        Net Asset Value (NAV) of the unit is shown on the bank’s website, updated on the following business day.

·        A subscription fee of 3% per annum is charge base on the amount of investment. This could either be deducted from investment amount or could be paid on top of the investment. Let say you purchase a unit at a monthly investment cost of ^OMR50.000. If you want your investment to be exactly ^OMR50.000 each month, then you must pay the ^OMR1.500 for the fee.

·        Investment can be withdrawn on anytime during Banking Hours, but it would take a week or so to process the withdrawal request.

·        A redemption fee of 3% will be charged if you decide to withdraw your investment within 2 months after the purchase. If withdrawn after two months, there will be no charge for redemption anymore.

·        You could submit your application for Mutual Fund to any Branch. The quickest way to check if the bank has approved your application and the amount has been deducted from your bank account, check your balance online or call the bank's customer service. If you have not enrolled your account for online access, this is the right time to do so.

Requirements to apply:

1.      Mutual Fund Application Form, duly filled up. You can get this from any branch

2.      Copy of Passport  - Original copy is needed for verification

3.      Copy of Labor Card - Original copy is needed for verification

4.      Bank Account Details – where investment will be debited from

How do you earn from Mutual Fund?

You earn from your Mutual Fund Investment if unit value at time of withdrawal is higher than the value when you purchase the units.

         For Example:  Date of Investment               : July 15, 2012

 Amount of Investment         : ^OMR50.000

                         NAV Value                            : 1.062

                            So, ^OMR50.00 / 1.062  =  47.081 is the number of units you bought

Date of Withdrawal              : Sept. 15, 2012

NAV Value                            : 1.082

No. of Units                          : 47.081

So, 47.081 units x 1.082  =  ^OMR50.942 is the amount that you will receive.

This shows an income of  ^OMR0.942 for the period of 2 months.

Above example is pretty much the same as when you invest in your country. Consider also that 3% of ^OMR50.000 or ^OMR1.500 fee was paid at the time of investment. That is why it is advisable to invest for a longer period. 

Can you loose from investing to Mutual Fund?

Yes. Although Mutual Fund has been one of the best ways of investing, there is a chance that you will also loose part of your investment depending on the development of economy. All Investments have their own different types of risk that we have to consider in choosing which type of investment is best you.

For other investment products from Bank Muscat, please visit their site.

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