Mutual Fund Investment in Oman
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:
Following are the important things to know before investing in Bank Muscat Mutual Fund:
· 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 15th day or every 30th 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can be withdrawn on anytime during Banking Hours, but it would take a week or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 If withdrawn after two months, there will be no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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