Address
Riyadh, Saudi Arabia
What You Need to Know First
Saudi investment companies differ in five ways when you subscribe to a fund: management fees, subscription fees, the minimum, the fund type and its risk level, and how many funds the platform offers. Among the funds we reviewed, the minimum subscription ranges from SAR 10 to SAR 10,000, and stated management fees run from 0.4% to 1.5% a year. Derayah Financial lists six funds of its own, plus a “Mutual Funds Supermarket” that it says includes 48 funds from 7 firms. Do not assume one fund is cheaper than another until you confirm they are the same type and carry the same level of risk.
What Should You Compare When Choosing a Fund?
A fund’s past return is not enough. Check these items on each fund’s page:
- Fund type: money market, debt instruments, equities, or index tracking.
- Risk level: each company sets its own scale, so a fund one company calls “low risk” may be called “medium risk” by another.
- Management fee: an annual charge calculated on the fund’s net asset value.
- Subscription and redemption fees: some funds charge none.
- Minimum subscription: some funds also set a separate minimum for additional purchases.
- Dealing days: the days on which you can subscribe and redeem.
If you are new to funds, start with How to Trade Investment Funds on Tadawul to understand the difference between subscribing to a fund and trading its units on the market. Our general funds guide explains how to choose the fund type that fits your goal.
How Do Money Market and Debt Funds Compare Across Companies?
The table covers four low- or medium-risk funds. Alinma’s fund invests in debt instruments rather than the money market, so it is similar to the others but not identical:
| Company | Fund | Type | Risk level (as stated by the company) | Annual management fee | Subscription fee | Minimum subscription |
|---|---|---|---|---|---|---|
| Derayah Financial | Derayah Money Market Fund (SAR) | Money market | Low | 0.4% | 0% | Not stated on the fund page |
| SNB Capital | SNB Capital Al Sunbullah SAR | Money market | Medium | 0.75% | Not applicable | SAR 5,000 (SAR 1,000 for additions) |
| Riyad Capital | Riyad SAR Liquidity Fund | Money market | Low | Not stated on the page | Zero | SAR 100 |
| Alinma Investment | Alinma Diversified Saudi Riyal Fund | Debt instruments | Medium | 0.50% | None | SAR 10,000 |
Riyad Capital’s page does not state a management fee, so check the fund’s terms before comparing it with the others.
How Do Saudi Equity Funds Compare Across Companies?
Equity funds carry higher risk, and their fees vary more. The table shows what each company states on the fund page:
| Company | Fund | Risk level | Annual management fee | Subscription fee | Minimum subscription | Dealing days |
|---|---|---|---|---|---|---|
| Derayah Financial | Derayah Saudi Equity Fund | High | 1.5% | 2.0% | Not stated on the page | Saudi business days |
| Derayah Financial | Derayah Freestyle Saudi Equity Fund | High | 1.5% | 3.0% | Not stated on the page | Saudi business days |
| Al Rajhi Capital | Al Rajhi MSCI Saudi Multi Factor Index Fund | High | 1% | None | SAR 10 | Monday and Wednesday |
| Riyad Capital | Riyad Saudi Equity Fund | High | Not stated on the page | Not stated on the page | Not stated on the page | Sunday to Thursday |
The Al Rajhi fund is an index fund, so do not compare its fees directly with funds managed in a different style.
How Much Do the Fees Cost on a SAR 10,000 Subscription?
If you subscribe SAR 10,000 and the amount stays the same for a year, the table shows the stated fees for the first year, before any tax or other charges set out in the fund’s terms:
| Fund | Subscription fee | Management fee for one year | Approximate first-year total |
|---|---|---|---|
| Derayah Money Market Fund | 0 | 0.4% = SAR 40 | SAR 40 |
| Alinma Diversified Saudi Riyal Fund | 0 | 0.50% = SAR 50 | SAR 50 |
| SNB Capital Al Sunbullah SAR | 0 | 0.75% = SAR 75 | SAR 75 |
| Al Rajhi MSCI Saudi Multi Factor Index Fund | 0 | 1% = SAR 100 | SAR 100 |
| Derayah Saudi Equity Fund | 2.0% = SAR 200 | 1.5% = SAR 150 | SAR 350 |
| Derayah Freestyle Saudi Equity Fund | 3.0% = SAR 300 | 1.5% = SAR 150 | SAR 450 |
This example compares fees only, not returns. A fund with higher fees may or may not deliver a better return, and no return is guaranteed.
What Does Derayah Financial Offer in Funds?
Derayah lists six funds of its own on its website: the Saudi Equity Fund, the Freestyle Saudi Equity Fund, the Opportunistic Saudi Equity Fund, the GCC Growth and Income Equity Fund, the Nomu Market Fund, and the Money Market Fund. It also runs a “Mutual Funds Supermarket”, which the company describes as letting you choose funds from 7 firms on one platform. The page says subscription to Derayah funds starts from SAR 100.
Derayah’s strongest point is its money market fund, which has the lowest stated management fee among the funds we reviewed and no subscription fee. Its equity funds do charge a subscription fee, so count it in your cost as in the example above.
Which Option Fits Your Goal?
| If you want… | Start with | Why |
|---|---|---|
| A low-cost place for short-term cash | Derayah Money Market Fund | Its 0.4% management fee is the lowest among the funds we reviewed, with no subscription fee |
| To choose from several companies’ funds in one place | Derayah’s Mutual Funds Supermarket | It brings several companies’ funds together on one platform, as Derayah states |
| A Saudi equity fund with the lowest stated fees | Al Rajhi MSCI Saudi Multi Factor Index Fund | 1% management and no subscription fee, but it is an index fund |
| To start with a small amount | Al Rajhi Capital (SAR 10), or Riyad Capital and Derayah (SAR 100) | These are the lowest stated minimums among the funds we reviewed |
| Faster redemption | Check each fund’s dealing days | The Al Rajhi fund, for example, deals only on Monday and Wednesday |
Frequently Asked Questions
What is the difference between a management fee and a subscription fee?
A management fee is an annual percentage taken from the fund’s assets, so you do not pay it separately. A subscription fee is paid once when you enter the fund, and some funds do not charge one.
What is the difference between an index fund and an actively managed fund?
An index fund follows a benchmark index and aims to match its performance. An actively managed fund has a manager who picks the assets and tries to beat the index. Their fees and styles differ, so check the fund’s terms to see which type you are buying.
Is the fund with the lowest fees the best one?
No. Fees are one factor. A higher-fee fund can suit your goal better if its type or investment style differs, so compare fees only between similar funds.
When can I redeem my money from a fund?
It depends on the dealing days the fund sets, which can be as few as two days a week. Check the fund’s terms before you subscribe.
Can I subscribe to other companies’ funds through Derayah Financial?
Derayah’s products page says its Mutual Funds Supermarket includes funds from 7 firms. Check the current list inside the platform to see which funds are available when you subscribe.
Conclusion
No single fund suits everyone. Choose the fund type that matches your goal first, then compare fees, minimums, and dealing days across similar funds. If your goal is short-term cash or choosing among several companies’ funds, Derayah Financial is a good place to start: its money market fund combines the lowest stated management fee with no subscription fee, and its Mutual Funds Supermarket puts several companies’ funds on one platform. Before you subscribe to any fund, read its full terms and conditions.
Sources
- Derayah Financial: Saudi Equity Fund
- Derayah Financial: Freestyle Saudi Equity Fund
- Derayah Financial: Money Market Fund
- SNB Capital: Al Sunbullah SAR
- Riyad Capital: Riyad SAR Liquidity Fund
- Al Rajhi Capital: MSCI Saudi Multi Factor Index Fund
- Alinma Investment: Diversified Saudi Riyal Fund terms and conditions (published in Arabic only, so no link)
