Mutual fund in World Uncertainty Of The Origin Of Mutual Fund

• Some cited that the close-end investment company lanuchedfirst mutual fund in the Netherland in 1822 by King William first.

• Other points to a Dutch merchant named Adriaan van Ketwichwhose investment trust created in 1774 may have given it.

• The Boston Personal Property Trust, formed in 1893, was the first close ended mutual fund in U.S.

• The creation of the Alexander Fund in Philadelphia in 1907 was an important step in the evolution toward what we know as the modern mutual fund.

How do Mutual Funds determine their Unit Price?

NAV = Current Market Value of all the Assets – Liabilities

Total Number of Units Outstanding

ADVANTAGES

• ACCESSIBILITY

• LIQUIDITY

• DIVERSIFICATION

• PROFESSIONAL MANAGEMENT

• CORPORATE TAX BENEFITS

REGULATORY BODIES

• The Securities & Exchange Commission of Pakistan (SECP)

• Central Depository Company of Pakistan (CDC)

• Asset Management Companies (AMCs)

SOURCES of funds

TYPES OF MUTUAL FUND

BY STRUCTURE

OPEN -ENDED

CLOSE -ENDED

BY NATURE

EQUITY SCHEME

BALANCED SCHEME

BY INVESTMENT OBJECTIVES

MONEY MARKET SCHEME

INCOME SCHEME

AGGRESSIVE FIXED INCOME

SCHEME

OTHER SCHEMES & PLANS

ASSET ALLOCATION

FUND

FUND OF FUND SCHEME

SHARIAHCOMPLIANT

(ISLAMIC) SCHEME

CAPITAL PROTECTED

SCHEME

INDEX TRACKER SCHEME

USES OF FUNDS

Savings Accounts

• Short term –An example of a very short-term savings account (6 months-one year), could be a money market mutual fund or income fund.

• Midterm –An example of a mid- term savings account (2- 3 years) could be an income -equity fund.

• Long- term –An example of long-term (greater than 3 years) could be a growth or growth and income mutual fund.

• Very long-term –an example of very long term, (five years or more) are growth, growth and appreciation, growth and income, and international funds.

Retirement Accounts

College Plans

Mutual funds work best when held long term

•LENDING TO GOVERNMENT

• Treasury notes

• Treasury bonds

• State Government Debt SecuritiesLow risk and low return

PERSONAL FINANCE:

•Housing finance

•Mortgage

•Amortized loan

•Investment property

•Fixed-term loan

•Credit card

•Other bank assets (e.g. infrastructure, shares in controlled

entities)

COMMERCIAL LENDING:

Fixed-term loan

Period of the loan

Interest rates

Timing of interest payment

Repayment of principal

Bank bills held

leasing

MUTUAL FUNDS COMPANIES:

• ASKARI ASSET MANAGEMENT LTD.

• ATLAS ASSET MANAGEMENT LTD.

• FAYSAL ASSET MANAGEMENT LIMITED

• HABIB ASSETS MANAGEMENT LTD.

• HBL ASSET MANAGEMENT LTD

• KASB FUND LIMITED

• UBL FUND MANAGERS LTD.

PRIMARY STAKEHOLDERS

• Sponsors

• Trustees

• Custodian

• Asset Management company

• Distributor/ Agents

• Banker

• Registrar &Transfer Agents

SPONSOR

TRUSTEE

CUSTODIAN

AMCAGENTS

BANKER

REGISTRAR

Requirements For Making Investment Of Taking Loan

For Individuals

• Management Company

• Copy of CNIC

• Application / Account opening Form

• Purchase of Units Form

• Zakat Affidavit (Optional)

• KYC Form (Know Your Customer)

• Cheque in favor of Trustee of the Fund

For Corporate• Memorandum and Article of Association/ Trust deed

• Board / Trustee Resolution approving the investment

• Application/Account Opening Form

• Purchase of Units Form

• Power of Attorney and/or relevant resolution of board of directors/ trustee delegating authority to any of its officer to invest

• NTN of the institution with tax status

• CNIC of the officer to whom the authority has been delegated

• Cheque in favour of Trustee of the Fund

Cost Benefit For The Investment

• Brainstorm Costs and Benefits

• Assign a Monetary Value to the Costs

• Assign a Monetary Value to the Benefits

• Compare Costs and Benefits

Here is An Example

Cost Benefit