Mutual Funds in Pakistan
SZABISTMutual Funds in PakistanTerm Report for Money & BankingSubmitted by: Sajjad baloch 1311312, Saher Kanrani 13113134/15/2016“Mutual funds” (Introduction)A mutual fund is a Collective Investment Scheme (CIS), which specializes in investing a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. A funds portfolio is structured and maintained to match the investment objectives stated in its prospectus. One of the main advantages of Mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult, if not impossible, to create with a small amount of capital.The income earned through these investments and the capital appreciations are shared by unit holders of the fund in proportion to the number of units owned by each of them. Mutual Funds usually have low minimum initial investment requirements. This gives the investors an access to the market and a chance to add to holdings in small increments.Mutual fund is a pool of money belonging to a group of investors, who entrust it to a Fund Manager for making prudent investments on their behalf, strictly in accordance with the Investment Policy laid down in the Constitutive Documents of the Fund. The ownership of the Fund Property vests in the investors and the Fund Manager is entitled only to certain fees, paid by the Fund, i.e., by the investors, for managing the Fund.
Categories of Mutual FundsEquity FundsDebt FundsMoney Market FundsSector FundsBalanced FundsIndex FundsMUTUAL FUND AND PAKISTANMUFAP (MUTUAL FUND ASSOCIATION OF PAKISTAN)Mutual Funds Association of Pakistan (MUFAP) is the trade body for Pakistans multi billion rupees asset management industry. The money our members manage is in a wide variety of investment vehicles including stocks, bonds, money market instruments, government securities and bank deposits. Our role is to ensure transparency, high ethical conduct and growth of the mutual fund industry.Major Mutual Funds in PakistanNATIONAL INVESTMENT TRUST AKD INVESTMENT MANAGEMENT LTD.AL FALAH GHP INVESTMENT MANAGEMENTAL-MEEZAN INVESTMENT MANAGEMENT LIMITEDARIF HABIB INVESTMENT MANAGEMENT LTD.ATLAS ASSET MANAGEMENT LTD.BMA ASSET MANAGEMENT LTD.HABIB ASSETS MANAGEMENT LTD.HBL ASSET MANAGEMENT LTDKASB FUND LIMITEDNATIONAL ASSET MANAGEMENT COMPANY LIMITEDNATIONAL FULLERTON ASSET MANAGEMENT LIMITED – NAFANATIONAL IINVESTMENT TRUST LTD.NBP CAPITAL LIMITEDUBL FUND MANAGERS LTD.FAYSAL ASSET MANAGEMENT LIMITEDHBL ASSET MANAGEMENT LTD vs. FAYSAL ASSET MANAGEMENT LTDHBL ASSET MANAGEMENT LTD (Conventional Mutual Funds)[pic 1]HBL Stock FundStock Fund aims to provide long term capital growth and competitive returnsInvestment is done in a diversified portfolio of listed equity securities, cash and T-BillsMinimum Investment requirement is Rs.5,000/- onlyNo holding periodNo exit load HBL I Income Fund It aims to provide stable streams of income bearing moderate level of riskInvestment is done in a diversified portfolio of cash instruments, bank deposits and certificate of investmentsMinimum Investment requirement is Rs.5,000/- onlyNo holding periodNo entry and exit load HBL Multi Asset FundMulti Asset Fund aims to provide long term capital growth and income.Investment is done in a diversified portfolio of listed equity securities, government securities, deposits and TFCsMinimum Investment requirement is Rs.5,000/- onlyNo holding periodNo exit loadHBL Mustahekum IPO 30th Jan to 20th March, 2015 100% capital protection on maturity Benefit from stock market returnTax benefits (as per current tax laws) Minimum investment from Rs. 10,000/- Duration of fund: 2 years m Sarmaya Fund 1HBL Money Market FundMoney Market Fund aims to provide low risk and consistent returnsInvestment is done in a diversified portfolio of government backed securities and T-BillsMinimum Investment requirement is Rs.5,000/- onlyNo holding periodNo exit load FAYSAL ASSET MANAGEMENT (Conventional Mutual Funds)FAYSAL ASSET ALLOCATION FUNDFlexibility in investment exposure to manage market riskNo minimum holding period of investmentEncashment without any penaltyExemption from Zakat on submission of AffidavitInvestments can be made from just Rs.5000/-Avail Tax Credit benefits as per section 62 income tax ordinance 2001[pic 2]FAYSAL BALANCED GROWTH FUNDNet assets ranging between 30% and 70% shall remain invested in listed equity securites, primarily in liquid shares. Rest of the net assets of the fund value will be invested in Fixed Income Securities including money market instruments