Reading the Memorandum of the Terms and Provisions of the Fund

​The fund manager is committed to provide the memorandum of the terms and provisions of each fund. It should contain detailed information to help investors make the right decision in selecting and investing in the fund that achieves their investment objectives. The memorandum includes:

  1. Planned objectives and policies to be followed by the fund manager in investing the subscribers’ funds.
  2. Potential risks that the fund’s investments can be exposed to.
  3. Approved fees and expenses.
  4. The fund’s Board of Directors.
  5. Approved auditor by the Board of the fund.
  6. Names of the members of the Islamic law committee and the fees of their consultation in case the fund operates according to the Islamic Law principles.
  7. The conditions of the subscription and redemption that define the allowed period to subscribe and redeem and the minimum amount to that.
  8. Evaluation days of the fund’s assets and the days to buy the units or redeem them.
  9. The index: the fund’s manager should compare the fund’s performance to a particular index that is set when the fund is established. The manager chooses the index based on the type of the fund’s investments in terms of geography or the type of financial instruments in which it invests in.