An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual 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. Each shareholder participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the fund's current net asset value (NAV) per share, which is sometimes expressed as NAVPS

1. Mutual fund in World
Uncertainty Of The Origin Of Mutual Fund
• Some cited that the close-end investment company lanuched
first mutual fund in the Netherland in 1822 by King William
first.
• Other points to a Dutch merchant named Adriaan van Ketwich
whose 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.

3. How do Mutual Funds
determine their Unit Price?
NAV = Current Market Value of all the Assets – Liabilities
Total Number of Units Outstanding

4. ADVANTAGES
•
•
•
•
•
ACCESSIBILITY
LIQUIDITY
DIVERSIFICATION
PROFESSIONAL MANAGEMENT
CORPORATE TAX BENEFITS

5. REGULATORY BODIES
• The Securities & Exchange Commission of
Pakistan (SECP)
• Central Depository Company of Pakistan
(CDC)
• Asset Management Companies (AMCs)

6. SOURCES of funds

7. TYPES OF
MUTUAL FUND
BY STRUCTURE
BY NATURE
BY INVESTMENT
OBJECTIVES
OTHER SCHEMES
& PLANS
ASSET
ALLOCATION
FUND
OPEN -ENDED
EQUITY SCHEME
MONEY MARKET
SCHEME
CLOSE -ENDED
BALANCED
SCHEME
INCOME SCHEME
FUND OF FUND
SCHEME
AGGRESSIVE
FIXED INCOME
SCHEME
SHARIAH
COMPLIANT
(ISLAMIC)
SCHEME
CAPITAL
PROTECTED
SCHEME
INDEX TRACKER
SCHEME

8. USES OF FUNDS

9. Savings Accounts
• Short term –
An example of a very short-term savings account (6 monthsone 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.

10. Retirement Accounts
College Plans
Mutual funds work best when held long term

11. •LENDING TO GOVERNMENT
• Treasury notes
• Treasury bonds
• State Government Debt Securities
Low risk and low return

12. PERSONAL FINANCE:
•Housing finance
•Mortgage
•Amortized loan
•Investment property
•Fixed-term loan
•Credit card
•Other bank assets (e.g. infrastructure, shares in controlled
entities)

13. COMMERCIAL LENDING:
 Fixed-term loan
 Period of the loan
 Interest rates
 Timing of interest payment
 Repayment of principal
 Bank bills held
 leasing

14. 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.

15. PRIMARY STAKEHOLDERS
• Sponsors
• Trustees
• Custodian
• Asset Management company
• Distributor/ Agents
• Banker
• Registrar &Transfer Agents

16. SPONSOR
TRUSTEE
REGISTRAR
BANKER
CUSTODIAN
AGENTS
AMC

17. Requirements For Making
Investment Of Taking Loan

18. 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

19. 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

20. 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

21. Here is An Example
Cost
Benefit