The transformation was highlighted by the latest data released by the Financial Regulatory Authority (FRA), which showed a sharp jump in investment fund performance during the first quarter of 2026, a sign of a gradual change in Egyptians' saving behaviour.
According to the report, the net asset value of investment funds surged to EGP 410.6 billion by the end of March 2026, up from EGP 316 billion in December 2025, while the number of operating funds rose to 187 from 172.
The number of investment fund certificates also climbed to EGP 31.4 billion from EGP 20.3 billion, reflecting growing investor demand. Individuals accounted for more than 74 percent of fund ownership, compared with around 16 percent for institutions and companies, highlighting rising public confidence in regulated investment vehicles supervised by the Financial Regulatory Authority.
Money market funds denominated in Egyptian pounds recorded the largest asset value at EGP 276.5 billion. Precious metals funds, on the other hand, saw particularly strong growth, with assets nearly doubling to more than EGP 10 billion within three months.
The figures suggest that while many Egyptians remain closely tied to gold as a store of value, they are increasingly investing in the precious metal through more modern, regulated financial tools rather than direct ownership.
Precious metals funds also recorded the highest average quarterly return at 20.37 percent, followed by index funds and private equity funds. The performance has raised broader questions about whether Egyptians are beginning to abandon traditional saving practices, such as storing gold at home, in favour of investment through funds and modern financial instruments.
Observers attribute the shift to economic developments, persistently high inflation in recent years, and the rapid spread of financial technology and digital investment applications, which have encouraged many citizens to seek instruments offering higher returns, stronger liquidity, and greater flexibility compared with traditional savings methods.
Treasury bill funds challenge banks
Tarek Metwally, former deputy chairman of Banque du Caire, told Ahram Online that the Egyptian market is witnessing a noticeable change in savers’ behaviour as citizens become increasingly aware of the real returns generated by different savings and investment vehicles, particularly amid persistently elevated inflation.
Metwally explained that some bank savings certificates offering annual returns of 17.25 percent over three years no longer enjoy the same appeal they once did, especially as inflation is expected to remain around 16 percent. This has pushed many investors to search for shorter-term instruments capable of delivering higher returns and greater liquidity flexibility.
He noted that many clients have begun comparing returns on bank deposits and current accounts, which sometimes range between 10 and 11 percent, with the yields generated by treasury bills and treasury bill-linked funds, which currently range between 19 and 20 percent.
According to Metwally, treasury bill funds, commonly known as “money market funds,” have become among the most attractive investment instruments recently, because they invest in low-risk short-term government debt instruments while providing high liquidity and quick redemption options alongside competitive returns.
He explained that money market funds rely primarily on treasury bills, deposits, and short-term financial instruments, making them among the least risky categories of investment funds. Many investors, he added, view them as similar to traditional bank savings but with relatively higher returns.
Metwally said the rising demand for these funds reflects growing financial awareness among citizens, particularly with the expansion of digital applications that make it easier to purchase and redeem fund certificates.
He expected investment funds and fixed-income instruments to continue growing in the coming period unless banks begin repricing their savings products more competitively to retain liquidity within the banking sector.
Smaller investors and gold funds
Speaking to Ahram Online, Ahmed Aboul Saad, CEO of Azimut Egypt, said economic transformations and rising inflation have fundamentally changed the traditional concept of saving among Egyptians.
Aboul Saad explained that high inflation rates, whether in Egypt or across emerging markets, mean that holding money without investing it gradually erodes its purchasing power.
He added that many citizens no longer have the financial capacity to save through traditional methods such as buying real estate or directly accumulating gold, especially after the sharp increase in prices in recent years.
Real estate prices in some areas, he noted, have climbed into the tens of millions of pounds, while purchasing physical gold now requires far greater liquidity than in previous years.
This has prompted the market to develop alternative investment instruments allowing citizens to enter the market with relatively small sums while benefiting from returns linked to asset performance.
“These developments contributed first to the emergence and spread of gold funds, and later to the expansion of real estate investment funds, as vehicles allowing gradual investment without the need to purchase an entire asset or bear storage and liquidity burdens,” Aboul Saad said.
He explained that gold funds have recorded unprecedented growth recently, noting that Azimut’s gold fund generated returns of around 16 percent during the first four months of 2026.
The fund alone now has more than 400,000 investors and assets worth around EGP 5 billion, while executed trading volumes have exceeded that figure several times over, reflecting strong demand for this type of investment.
Aboul Saad stressed that gold funds have not eliminated traditional gold buying, but instead created a more flexible means of accessing the precious metal, especially for young people and small investors unable to purchase gold bars or coins directly.
He noted that investors between the ages of 20 and 30 have become the most active participants in gold funds, reflecting a clear evolution in the financial culture of younger generations, who increasingly prefer digital investment applications and platforms over traditional saving methods.
Aboul Saad added that the best investment strategy at present relies on diversifying assets among gold, equities, fixed-income instruments, and cash liquidity.
Maintaining liquidity of at least 15 percent, he said, gives investors greater ability to seize opportunities during periods of economic turbulence and market declines.
He also expected strong growth opportunities for the Egyptian stock market in the coming period that could exceed 30 percent, especially given that many shares remain undervalued relative to their underlying assets.
“The investor who does not begin investing today may, after several years, find themselves unable to maintain the same economic and social standard,” he warned.
A cheaper, more flexible alternative
Hanan Ramsis, a capital markets expert, told Ahram Online that rising inflation and sharp increases in the prices of traditional assets such as gold and real estate have pushed many citizens to search for alternative investment tools capable of generating higher returns with lower financial requirements.
This trend, she said, has strengthened demand for investment funds, particularly gold and index funds.
Ramsis explained that precious metals funds achieved strong growth and returns recently due to historic increases in global and domestic gold prices.
Many citizens, she noted, can no longer afford to purchase gold directly, particularly after some gold categories reached record price levels.
As a result, gold funds have become a more accessible and flexible alternative, allowing investors to participate with relatively small amounts while benefiting from market movements in gold prices.
She added that declining real returns on some traditional savings products relative to inflation have also encouraged growing numbers of individuals to shift towards investment funds in search of higher returns, particularly given the ease of entering and exiting funds and redeeming investments in a quick and organised manner.
Ramsis stressed that oversight by the FRA has strengthened citizens’ confidence in investment funds and contributed to changing the traditional saving culture among many investors who previously preferred holding cash or physical gold directly.
She added that technological advances and the spread of digital applications have also made access to such investment tools significantly easier.
According to Ramsis, continued inflation alongside expectations of further increases in global gold prices and industrial demand for gold will likely support continued growth in gold and precious metals funds during the coming period.
She concluded that the rise in investment fund assets in Egypt to more than EGP 410 billion, combined with individuals accounting for over 74 percent of certificates, reflects a clear transformation in Egyptian investor behaviour and the entry of entirely new segments into the institutional investment market for the first time.
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