Savings accounts are what happen before the investments come along. They build up those reserves and create an emergency fund for times where consumers need it most. But when this is achieved and customers are willing to take some risk, investments are the next stop. Investors are willing to take on that extra bit of risk for the potential of earning a higher return on their funds. National Bank of Abu Dhabi Investments provide customers with an array of options. This review takes a closer look to determine whether it measures up on a global scale.
Read here to find out how Deutsche Bank's investments compare to these.
About National Bank of Abu Dhabi
National Bank of Abu Dhabi is a fairly modern bank and came into existence just under 50 years ago. Since the opening, it’s managed to grow in size and reputation. The bank operates a good profit model and with the help of some conservative mergers and acquisitions, it climbed the ranks to outperform some of the biggest in the UAE. It wasn’t long before the bank claimed the title as the safest bank in the Middle East. It is also the first bank in the UAE to break the record of $ 1 billion profit.
We recently did a full review on National Bank of Abu Dhabi, read here to learn more.
Important things to Consider When Investing
Investments, unlike savings, are a means for customers to build their wealth, not a nest egg. Although it might achieve that goal, building up emergency savings is a short term need, whereas wealth takes time. It’s not necessary for customers to invest to build up wealth, but there is the opportunity to increase it more than with regular savings. However, there are restrictions on investments and customers need to take care before putting down any of their funds.
Investors shouldn’t increase their risk profile unnecessarily by investing with institutions that don’t have a good track record. It’s important for customers to do research before they allow their funds to land in the wrong hands. There are many institutions that will help customers achieve their investments goals without them having to look elsewhere.
Understanding Investment Risk
The risk categories for investments range from very low risk to very high risk. This means that customers who choose the very low-risk option have the potential to earn on par with or slightly higher rates than banks or inflation. There is the slight possibility that they may lose funds and end up with less than they started. In extreme cases, they might even lose all their funds.
Those who opt for very high-risk investments are not concerned with the risk. They merely want growth and will use all avenues at their disposal to find it. Customers in this category are prepared to lose it all for the maximum potential of returns.
Investments Take Time
Although market fluctuations can take place in a day, those who wish to invest are advised to part with their funds for at least 5 years. Customers who may need to access their funds before that should rather opt to place their funds in savings or bank investments.
National Bank of Abu Dhabi Investments Product Offerings
NBAD Mutual Funds
This investment type provides customers with access to a multitude of investment funds. Furthermore, these stretch over asset classes such as equities, fixed income, and money markets.
This option provides customers with fund options in equity and equity related securities.
Conservative Allocation Fund
The aim of this funds is to provide long-term total returns. Furthermore, these returns are consistent with a lower risk profile.
Growth Allocation Fund
This fund provides long-term related returns that are more consistent with a higher risk profile.
Balanced Allocation Fund
This fund aims to provide total return on the investment. The potential profit is also consistent with a moderate risk profile.
These are balanced, fixed income MENA-based regional funds.
MENA Income and Growth Fund
This is a balanced fund that invests in equities, fixed income, and physical real estate.
MENA Growth Fund
With this fund, investors have access to equities that are based in the GCC region. Furthermore, the fund may also invest up to 20% of the total fund allocation in other markets.
MENA Bond Fund
This is an open-ended fund that is actively managed. Also, the fund is bond-based and targets attractive profit rates. Furthermore, it also looks for semi-annual distributions.
MENA Dividend Leader Fund
With this fund, customers have access to equities and equity related securities. This includes convertible bonds, American Depositary Receipts, and Global Depositary Receipts across MENA.
This investment type reduces the investor’s underlying risk. Furthermore, it focuses on local funds that aim to provide attractive returns over the medium term.
UAE Trading Fund
This fund aims to provide attractive returns over the medium term. It also seeks to reduce overall risk in underlying markets.
UAE Growth Fund
This fund invests in a balanced portfolio that is based mainly in the UAE markets.
OneShare MSCI UCITS ETF
This ETF provides a long-term capital appreciation. This is done through tracking and replicating the performance of the benchmark index. In this case, that index is the MSCI UAE Investable Market Index.
These funds follow the Islamic Shari’a principles with the view to achieve capital growth. It makes use of a balanced portfolio of equities.
Islamic MENA Growth Fund
This fund invests in a balanced portfolio of equities. This is based on Shari'a principles while still aiming to achieve capital growth.
Sukuk Income Fund
Investors who wish to seek Shari’a compliant funds and still capture the best opportunities available will find this fund suitable.
Shariah MENA Dividend Leader Fund
This fund invests in Shari'a-compliant equities and equity-related securities. This also includes participatory notes, also known as p-notes.
Global Investment Funds
Customers who wish to invest in these funds have access to leading international managers. Furthermore, they have the opportunity to invest across various asset classes and geographies.
- First Eagle Amundi International Fund, Vontobel Fund – US Equity, GAM Star China Equity, AXA WF Global High Yield Bonds, and Templeton Emerging Markets Bond Fund.
- Nordea European Value, PIMCO Global Bond Fund, RAM Emerging Markets Equities, UTI India Fund 1986 Shares, and Henderson Horizon Fund – Global Technology Fund.
- KOTAK India Growth Fund, UTI Indian Fixed Income Fund, Janus Global Life Sciences Fund, and Standard Life Investments – Global Absolute Return Strategies.
- Schroder International Selection Fund – Japanese Opportunities, PIMCO GIS Global Investment Grade Credit Fund, Goldman Sachs Growth & Emerging Markets Debt Portfolio, and Pictet Precious Metals Fund CH – Physical Gold.
Fixed Maturity Plans
These are available as NBAD Fixed Maturity Plan Series 1 through 12.
Aman Takaful Investment Plans
This is a Shari’a compliant investment plan that is designed to offer the dual benefits of saving and protection.
- Customers are required to make a minimum contribution to the account of AED 25,000.
- This investment benefits from a unique investment strategy called Dynamic Protection Program (DPP). It allows customers to benefit from upward trends while providing risk protection for the downward trends.
- Finally, this covers a host of other products and special features as well.
Regular Savings Plans
Customers are better equipped to save for future events with these plans.
- These plans allow them to plan for the future.
- Furthermore, they can secure their medium to long-term financial objectives.
- Also, it allows them to save for their goals.
- Finally, the options include the Aman Takaful Savings Plan, EduCare, and Future Protect.
Customers enjoy bespoke trading solutions, as well as high standards. This is supported by the exclusive technical and fundamental research reports.
- This product provides customers with access to an online trading platform. It allows customers access the selected markets.
- Customers enjoy the service of first-class brokers.
- The platform also provides customers with access to other services, such as equities, fixed income, and IPOs.
- Furthermore, it provides customers with advice for local markets.
- Finally, customers have the opportunity to grow their funds and get the latest.
These products are designed to take advantage of market opportunities. Furthermore, customers enjoy the benefit of protection against a downside risk. Also, customers have the opportunity to participate in the following:
- Interest-Linked Investments
NBADS Trade App
With this app, customers have access to their trading account. It also provides them with an account summary and detail Portfolio position. Furthermore, customers are able to create a watch list. Finally, they can place, modify, and cancel orders as well as search their order history for the last 60 days.
Those who prefer simple savings may want to consider the National Bank of Abu Dhabi Savings Accounts. Read more on that here.
Critical Reviews Rating National Bank of Abu Dhabi Investments – 8 of 10
This is a selection of investment portfolio options that will not leave clients found wanting. In fact, there are few banks or other financial institutions that can offer products to match or beat these. Furthermore, the details are clearly communicated.
With all the plusses out of the way, there are items that cause a bit of concern. The investment site does not clearly communicate the risk of investing, which probably means that customers will need to deal directly with a consultant, advisor, or banker to get this information. The other item of concern is that there is also no mention of pricing or term. These may seem like obvious items to those in the industry, but for those who are starting out in the investment arena, these could be expensive mistakes.
National Bank of Abu Dhabi also has current accounts. Read the full review here.