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.
ABLCF 10.3 ABLFPF-Active 91.79 ABLFPF-Conservative 106.54 ABLFPF-SAP 96.23 ABLGSF-B 10.24 ABLIDSF 8.17 ABLIF 10.25 ABLIFPF-Active 99.43 ABLIFPF-Aggressive 101.99 ABLIFPF-Conservative 108.91 ABLIFPF-SAP 100.69 ABLIFPF-SAP-II 91.68 ABLIFPF-SAP-III 96.53 ABLIFPF-SAP-IV 99.72 ABLIIF 10.36 ABLIPPF-D 114.73 ABLIPPF-E 155.78 ABLIPPF-MM 112.01 ABLISF 13.97 ABLPPF-D 140.46 ABLPPF-E 150.24 ABLPPF-MM 115.89 ABLSF 13.35 AGHPAF 68.9 AGHPCF 506.12 AGHPIF 114.23 AGHPIIF 103.09 AGHPIMF 54.39 AGHPIPF-D 102.48 AGHPIPF-E 80.12 AGHPIPF-MM 102.65 AGHPIPPF-AAP 95.58 AGHPIPPF-AAP-II 90.6 AGHPIPPF-AAP-III 93.94 AGHPIPPF-BAP 102.88 AGHPISF 59.85 AGHPMMF 99.74 AGHPPF-D 103.48 AGHPPF-E 77.81 AGHPPF-MM 103.54 AGHPPPF-AAP 103.25 AGHPPPF-CAP 108.05 AGHPPPF-MAP 101.11 AGHPSF 127.02 AGHPVF 59.22 AGHSF 107.97 AKDCF 51.29 AKDGASSF 9.23 AKDIF 52.43 AKDITF 13.46 AKDOF 77.32 ALFALAHGHPIDEF 80.57 ALFALAHGHPIVF 100.53 ASKARIAAF-B 44.21 ASKARIAAF-C 44.21 ASKARIEF 96.18 ASKARIHYS 103.63 ASKARIIAAF-B 96.31 ASKARIIAAF-C 96.31 ASKARIIIF-B 103.24 ASKARIIIF-C 103.24 ASKARISCF 102.52 ASKARISYE 103.88 ATLASGF 105.31 ATLASIF 523.68 ATLASIIF 514.1 ATLASISF 496.39 ATLASMMF 514.32 ATLASPF-D 237.06 ATLASPF-E 437.6 ATLASPF-G 115.14 ATLASPF-MM 226.69 ATLASPIF-D 197.54 ATLASPIF-E 567.1 ATLASPIF-MM 208.42 ATLASSLF 102.3 ATLASSMF 556.77 BMACRSF 8.46 BMAECF 10.35 DAWOODIF 84.45 DAWOODISF 113.88 FAYSALAAF 51.81 FAYSALBGF 60.19 FAYSALFIAAF 80.23 FAYSALFSOF 103.49 FAYSALIGF 108.06 FAYSALISGF 104.53 FAYSALMMF 103.7 FAYSALMTSF 102.69 FAYSALSGF 103.96 FCMF 9.68 FCMF 9.68 FCMF-A 9.68 FDAWOODMF 21.13 FHABIBAAF 99.6 FHABIBCF 102.85 FHABIBIF 104.15 FHABIBIIF 101.32 FHABIBSF 82.1 FHIBF 80.65 HBLCF-C 102.99 HBLCF-D 102.99 HBLEF 14.08 HBLEQF 100.72 HBLFPF-AAP 100.12 HBLFPF-CAP 99.93 HBLFPF-SAP 99.97 HBLGSF-C 107.56 HBLGSF-D 107.56 HBLIAAF 100.99 HBLIEF 85.93 HBLIF 108.13 HBLIFPF-AAP 97.3 HBLIFPF-CAP 98.03 HBLIFPF-SAP 98.44 HBLIIF 103.27 HBLIMMF 102.44 HBLIPF-D 139.55 HBLIPF-E 357.97 HBLIPF-MM 136.85 HBLISF 103.95 HBLMAF 97.32 HBLMMF 104.12 HBLPF-D 156.01 HBLPF-E 332.1 HBLPF-MM 143.94 HBLSF 97.98 JSCF 103.98 JSCPF-V 101.68 JSFOF 48.91 JSGF-A 178.58 JSIF 98.21 JSIHFF-II-AAP-II 100.04 JSIHFF-JSIAAP I 99.84 JSIHFF-Mufeed 76.76 JSIHFF-Munafa 76.74 JSIHFF-Mustakhkem 94.36 JSIHFF-Mustanad 104.14 JSIHFF-Mutanasib 78.06 JSIIF 102.19 JSIPSF-D 197.61 JSIPSF-E 603.84 JSIPSF-MM 170.86 JSISF 100.93 JSLCF 125.7 JSPSF-D 232.55 JSPSF-E 437.07 JSPSF-MM 186.98 JSUTP 153.47 JSVF-A 192.76 LAKSONAADMF 126.03 LAKSONEF 106.74 LAKSONIF 103.02 LAKSONITF 89.49 LAKSONMMF 102.63 LAKSONTF 94.69 MCBAHAIAAF 90.43 MCBAHAIAAF-II 97.48 MCBAHAIAALF 68.29 MCBAHAIIF-A 103.15 MCBAHAISF 10.12 MCBAHIIF-B 103.15 MCBAHMCBCMOF 102.96 MCBAHMCBDIF 108.59 MCBAHPCF 51.38 MCBAHPCM 10.53 MCBAHPFPF 100.92 MCBAHPIEF 54.44 MCBAHPIF 54.86 MCBAHPIPF-D 195.8 MCBAHPIPF-E 473.42 MCBAHPIPF-MM 176.57 MCBAHPPF-D 234.35 MCBAHPPF-E 465.41 MCBAHPPF-MM 214.36 MCBAHPSMF 87.64 MCBPAAF 76 MCBPSF 54.34 MEEZANAAF 42.33 MEEZANBF 14.89 MEEZANCF 51.37 MEEZANDEF 47.1 MEEZANEF 46.46 MEEZANFPFF-A 67.77 MEEZANFPFF-M 64.97 MEEZANFPFF-MAAP-I 57.38 MEEZANFPFF-MAAP-II 53.38 MEEZANFPFF-MAAP-III 52.44 MEEZANFPFF-MAAP-IV 45.16 MEEZANFPFF-MSAF-III 40.44 MEEZANFPFF-MSAP-I 42.3 MEEZANFPFF-MSAP-IV 41.07 MEEZANFPFF-MSAP-V 47.22 MEEZANGF 50.91 MEEZANIF 60.77 MEEZANIIF-B 52.15 MEEZANIIF-C 52.15 MEEZANKMIF 66.6 MEEZANMF 16.89 MEEZANMFPFF-C 63.48 MEEZANMSAP-II 41.37 MEEZANSF 51.78 MEEZANTPF-D 216.82 MEEZANTPF-E 470 MEEZANTPF-G 91.41 MEEZANTPF-MM 214.48 NAFAAAF 14.94 NAFAAARFSF 10.19 NAFAFSIF 10.78 NAFAGSLF 10.4 NAFAGSSF 10.53 NAFAIAAEF 10.75 NAFAIAAF 15 NAFAIAAP-I 116.44 NAFAIAAP-II 107.5 NAFAIAAP-III 102.45 NAFAIAAP-IV 94.35 NAFAIAAP-V 86.41 NAFAIAAP-VI 83.77 NAFAIAAP-VII 90.21 NAFAIAAP-VIII 98.85 NAFAIEF 12.02 NAFAIF 10 NAFAIOF 10.94 NAFAIPF-D 125.7 NAFAIPF-E 275.01 NAFAIPF-MM 126.04 NAFAIPPF-II 100.93 NAFAISF 10.74 NAFAMAF 17.11 NAFAMMF 10.1 NAFAPF-D 144.16 NAFAPF-E 275.32 NAFAPF-MM 130.85 NAFAPPF 101.92 NAFARFSF 10.42 NAFASF 13.47 NAFASPF 10.39 NAFIAIF 9.72 NIT-GBF 10.19 NIT-IF 10.54 NIT-NI(U)T 68.26 NITGTF 10.28 NITIEF 9.61 NITIIF 10.22 NITIPF-D 10.91 NITIPF-E 10.37 NITIPF-MM 10.82 NITPF-C 11.61 NITPF-D 11.12 NITPF-E 9.79 NITPF-MM 11.09 PCF 108.17 PICICGF 40.12 PICICIF 17.28 PIMLAAF 87.11 POAAAF 51.28 POAIIF 53.49 POGSF 10.86 POIAAF 53.67 PRIMUSDRF 82.44 PRIMUSIEF 102.44 PRIMUSIMMF 103.22 PRIMUSSMAF 98.16 PRIMUSVEF 99.72 UBLAAAIRSF-D 160.47 UBLAAAIRSF-E 596.09 UBLAAAIRSF-MM 155.05 UBLAAF 127.82 UBLAAIAAP-III 113.78 UBLAAIAAP-IV 110.65 UBLAAIAAP-IX 95.04 UBLAAIAAP-V 97.49 UBLAAIAAP-VI 90.99 UBLAAIAAP-VII 85.98 UBLAAIAAP-VIII 85.91 UBLAAICAP 100.42 UBLAAIDEF 111.02 UBLAIAAF 112.67 UBLAICF 102.35 UBLAIIF-G 101.38 UBLAIIF-I 101.38 UBLAISF 101.87 UBLASSF 128.28 UBLCAP 100.22 UBLCPF-III 98.54 UBLGSF 107.69 UBLIOF 111.53 UBLLPF-C 103.17 UBLMMF 102.67 UBLRSF-C 114.58 UBLRSF-D 209.96 UBLRSF-E 609.88 UBLRSF-MM 171.37 UBLUGIF-G 86.26 UBLUGIF-I 86.26 UBLUSAF 63.99

What You Should Know

Fees

All mutual funds have fees and expenses that are paid by investors. These costs are significant because they affect the return on the investment; therefore investors need to calculate their returns net of all such deductions. The fees and any other charges are usually mentioned in the offering documents and the fund brochure printed by the Asset Management Company. Fees generally fall into two categories: a) management fees and b) load charges. Management fees is calculated as a fixed percentage of the average net assets managed by the firm for providing office space and professional management, including all accounting and administrative services. The second category is sales commissions described as “front-end loads” (sales charges when you buy) or “back-end loads” (sales charges when you sell). “No-load” funds, as the name implies, do not have front-end or back-end sales charges. These fees are for undertaking the distribution and selling of the funds.

Taxation on Mutual Funds

The income of mutual funds is exempt from Income Tax, if not less than 90% of the income of the year, as reduced by capital gains is distributed amongst the unit holders as dividend or bonus units.

Taxation on Unit Holders

Holders of mutual funds are subject to Income Tax on dividend income received from a mutual fund (excluding the amount of dividend paid out of capital gains on listed securities) as under:
  • Public Company and Insurance Company 5%
  • If received by any other person, including a non-resident  10%
Capital gain on disposition of units in a mutual fund is exempted from tax till such time that capital gain on sale of securities listed on the stock exchanges is exempt from such tax.

Tax Credit

As funds are listed at the stock exchanges, unit holders of the mutual funds, other than a company, are entitled to a tax credit under section 62 of the Income Tax Ordinance, 2001 on purchase of new units. The amount on which tax credit is allowed is the lower of (a) amount invested in purchase of new units, (b) twenty percent of the taxable income of the unit holder, or (c ) Rupees One Million (PKR.1,000,000), and is calculated by applying the average rate of tax of the unit holder for the tax year. If the units are disposed within twenty four months, the amount of tax payable for the tax year in which the units are disposed is increased by the amount of credit allowed.

How to Develop an Investment Plan?

The first step to successful investing for any investor is to develop a clear understanding of his expected return from the investment and define his risk tolerance to help him identify a suitable choice of investment.
  • Investors need to establish financial goals with respect to the requirements from the investment and time horizon for realizing these goals. Goals may be immediate such as making a down payment on a home, paying for a wedding, or creating a college fund. Long-term goals could be like paying for college or retirement. Establishing goals helps to assess how much money you need to invest, how much the investments must earn, and when the money will be required.
  • Investors need to study the financial markets to understand the options available to them and forecast a realistic market expectation of future performance. Setting realistic expectations about investments and about market performance is an important part of the investment plan. Securities do not always rise in value, and when they fall, the downturns can sometimes be lengthy. A well-conceived, diversified personal investment plan can help against these downturns, and give a measure of comfort during market volatility.
  • Investors need to build their investment plan keeping in view liquidity and financial limitations. For instance, investors may need to make payments in the near future which restrict them from committing large sums of money for an indefinite period.
  • All mutual funds involve investment risk, including the possible loss of principal. To generate some returns a certain degree of risk is inevitable. This principle of investing is known as the risk/ reward tradeoff. When forming a plan, therefore the investor needs to understand his threshold risk tolerance levels. Is stability more important than higher returns, or can short-term losses be tolerated for potential long-term gains?
  • Investors should be able to set risk and return objectives after these considerations. Risk and return objectives must be set in specific terms for instance an investor may require 15% return p.a. with an expected standard deviation of 2% for the next 5 years.

Risks of Investing in Mutual Funds

Mutual funds are capital market instruments and therefore subject to the same risks as the underlying investments. Specific risks include:
  • Credit risk - potential that an investment (specifically fixed-income securities) will go down when assigned a negative rating (downgraded) by a reputable credit rating service.
  • Default risk - risk associated with an issuer of a debt instrument that may not have the financial ability to meet regular interest payments or is incapable of repaying the debt at maturity.
  • Equity investment risk - risk resulting from changes in a specific company or industry developments and prospects, as well as changes in interest rates, economic conditions and stock market news.
  • Interest rate risk - risk resulting from increased interest rates in the market place, that the income earned from an original investment will not be worth as much as the going market rates.
  • Liquidity risk - inability to sell a security reasonably quickly at the prevailing market price or convert an asset into cash as quickly as possible.
  • Political risk - potential for changes in government to impact the value of an investment. It may also include policy changes made by governments.

Fund Reporting

Mutual funds is a highly regulated industry by the SECP. To keep investors informed about the fund’s performance the management publishes daily returns on their website, monthly fund manager’s reports and quarterly and annual audited accounts. Legal documents affecting the fund’s operations are also available on the company websites or present at all sales offices.
  • Prospectus/ Offering document - A mutual fund’s prospectus describes the fund’s goals, fees and charges, investment strategies and risks, as well as information on how to buy and sell units. The SECP requires a fund to provide a full prospectus before accepting any investment.
  • Trust Deed - Agreement signed, between the trustee and the fund sponsors, which details the appointment of the trustee/ custodian and the roles and responsibilities as trustee and custodian which include safekeeping and possession of the fund’s assets, movements of the fund’s assets and their investment.
  • Financial Statements - These statements show the performance of the fund in the outgoing period and help the investor evaluate how successfully the fund has achieved its stated objectives. Shareholder reports typically include two main types of information a) the fund’s financial statements and performance and b) a list of the securities the fund held in its portfolio at the end of the most recent accounting period.
  • Reports and Website Information - AMCs regularly update their websites with daily fund prices, whereas monthly fund manager’s reports are added when the month ends, which details the market conditions, reasons for the fund’s performance and future outlook.
Websites also provide fund prices (recent or historical), compare trends, company information, copies of all legal documents and other useful data.

INFORMATION

MUFAP gratefully acknowledges Center for International Private Enterprise (CIPE) Business Support grant amongst others for investors protection and access to information.

MUFAP is an affiliate of the South Asian Federation of Exchanges (SAFE).

MUFAP is a member of International Investment Fund Managers Association (IIFA) and the Asia Oceania Regional Meeting (AORM).

SECP's Investor Portal Jama Punji