Mutual Funds in Pakistan

“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 fund's 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 Funds

• Equity Funds
• Debt Funds
• Money Market Funds
• Sector Funds
• Balanced Funds
• Index Funds

MUTUAL FUND AND PAKISTAN

MUFAP (MUTUAL FUND ASSOCIATION OF PAKISTAN)

Mutual Funds Association of Pakistan (MUFAP) is the trade body for Pakistan's 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 Pakistan

• NATIONAL INVESTMENT TRUST
• AKD INVESTMENT MANAGEMENT LTD.
• AL FALAH GHP INVESTMENT MANAGEMENT
• AL-MEEZAN INVESTMENT MANAGEMENT LIMITED
• ARIF HABIB INVESTMENT MANAGEMENT LTD.
• ATLAS ASSET MANAGEMENT LTD.
• BMA ASSET MANAGEMENT LTD.
• HABIB ASSETS MANAGEMENT LTD.
• HBL ASSET MANAGEMENT LTD
• KASB FUND LIMITED
• NATIONAL ASSET MANAGEMENT COMPANY LIMITED
• NATIONAL FULLERTON ASSET MANAGEMENT LIMITED - NAFA
• NATIONAL IINVESTMENT TRUST LTD.
• NBP CAPITAL LIMITED
• UBL FUND MANAGERS LTD.
• FAYSAL ASSET MANAGEMENT LIMITED

HBL ASSET MANAGEMENT LTD vs. FAYSAL ASSET MANAGEMENT LTD

HBL ASSET MANAGEMENT LTD (Conventional Mutual Funds)

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HBL Stock Fund

• Stock Fund aims to provide long term capital growth and competitive returns
• Investment is done in a diversified portfolio of listed equity securities, cash and T-Bills
• Minimum Investment requirement is Rs.5,000/- only
• No holding period
• No exit load        

HBL I    Income Fund

• It aims to provide stable streams of income bearing moderate level of risk

• Investment is done in a diversified portfolio of cash instruments, bank deposits and certificate of investments
• Minimum Investment requirement is Rs.5,000/- only
• No holding period
• No entry and exit load

HBL Multi Asset Fund

• Multi 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 TFCs
• Minimum Investment requirement is Rs.5,000/- only
• No holding period
• No exit load

HBL Mustahekum    IPO 30th Jan to 20th March, 2015

• 100% capital protection on maturity
• Benefit from stock market return
• Tax benefits (as per current tax laws)
• Minimum investment from Rs. 10,000/-
• Duration of fund: 2 years m Sarmaya Fund 1

HBL Money Market Fund

• Money Market Fund aims to provide low risk and consistent returns
• Investment is done in a diversified portfolio of government backed securities and T-Bills
• Minimum Investment requirement is Rs.5,000/- only
• No holding period
• No exit load        

FAYSAL ASSET MANAGEMENT (Conventional Mutual Funds)

FAYSAL ASSET ALLOCATION FUND

• Flexibility in investment exposure to manage market risk
• No minimum holding period of investment
• Encashment without any penalty
• Exemption from Zakat on submission of Affidavit
• Investments can be made from just Rs.5000/-
• Avail Tax Credit benefits as per section 62 income tax ordinance 2001

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FAYSAL BALANCED GROWTH FUND

Net 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