Mashreqbank has launched a new investment fund which offers returns starting at a guaranteed 3.75 percent per annum in the first six months period. This is over three times the current deposit rate.
A four-year product, returns could climb up to 7.25 percent per annum depending on the performance of the six-month US Libor rates and are paid every six months. The Regent Fund opens for investment from November 23 and closes on December 15, or earlier if over subscribed.
“The Regent fund has been specifically designed to appeal to risk-averse savers who in the prevailing low deposit interest rate environment, are looking for higher returns” said Division Head of Mashreqbank Treasury and Capital Markets, Nabeel Waheed.
It is a very low risk investment, since, if the interest rates remain depressed, as pundits predict, it offers a return of up to 22 percent on maturity in four years. On the other hand, if the Libor rate unexpectedly rises rapidly, the investment guarantees, at least, a 3.75 percent return per annum during the first six months and 1.5 percent per annum subsequently, through the life of the product. This is still better than the current returns from a bank deposit. The returns over four years are subject to the investment not getting called earlier.
Targeted at the retail consumer the minimum investment for the fund is $5,000 and in multiples of $5,000 thereafter. In case investors urgently require liquidity they can avail of an overdraft against their investment.
In the past 18 months Mashreqbank has launched over 60 guaranteed investment products, each one tailored to meet the preferences of differing market segments, including earlier this month its first Islamic investment fund. — (menareport.com)
© 2002 Mena Report (www.menareport.com )