Investment and Portfolio Management

Assignment Topic:
MUFAP and Mutual Funds

Submitted to: Ms. Shaista Jabeen

Submitted by: Amina Irshad
Roll No: 61651001
BBA: 7th Semester
Department of Management Sciences

Lahore College for Women University

MUTUAL FUNDS ASSOCIATION OF PAKISTAN
Mutual Funds Association of Pakistan is the trade body duly licensed by the Government of
Pakistan for the mutual fund industry in Pakistan. All Asset Management Companies (AMCs) and
Investment Advisory ( IAs ) licensed by SECP to launch Mutual Funds and perform Investment
Advisory Services are required under NBFC Rules 2008 to become Members of MUFAP.

WHAT IS MUTUAL FUND?

A mutual fund is a collective investment scheme, which specializes in investing a pool of money
collected from investors for the purpose of investing in securities such as stocks, bonds, money
market instruments and similar assets.
One of the main advantages of mutual funds is that they give small investors access to
professionally managed, diversified portfolios of equities, debt instruments i.e. TFCs and Govt.
Securities and other securities, which otherwise 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 realized are shared with its unit holders in proportion to the number of units owned
by them.

TYPES OF MUTUAL FUNDS

There are basically two types of Mutual Funds:
1. Open-Ended Mutual Funds
2. Closed-Ended Mutual Funds
1- Open-ended
These are mutual funds which continually create new units or redeem issued units on demand.
They are also called Unit Trusts. The Unit holders buy the Units of the fund or may redeem them
on a continuous basis at the prevailing Net Asset Value (NAV). These units can be purchased and
redeemed through Management Company which announces offer and redemption prices daily.
2- Close-ended
These funds have a fixed number of shares like a public company and are floated through an IPO.
Once issued, they can be bought and sold at the market rates in secondary market (Stock
Exchange). The market rate is announced daily by the stock exchange.

How do Mutual Funds determine their Unit Price?

A fund's Net Asset Value (NAV) represents the price per unit. The NAV is equal to the market
worth of assets held in the portfolio of a Fund, minus liabilities, divided by the number of units
outstanding.
NAV = Current Market Value of all the Assets – Liabilities / Total Number of Units Outstanding
In order to determine the sale price of the unit sales load is added to the NAV. In case there is no
sales load the NAV will be the sale price as well as the redemption price. The sale and redemption
price is declared on a daily basis by the Funds and can be viewed on their websites.

CATEGORIES OF MUTUAL FUND

SECP the Regulator has categorized the Schemes of mutual funds as under:-
 Equity Scheme: An equity scheme or equity fund is a fund that invests in Equities more
commonly known as stocks. The objective of an equity fund is long-term growth through
capital appreciation, although dividends and capital gain realized are also sources of
revenue.
 Balanced Scheme: These funds provide investors with a single mutual fund that invests in
both stocks and debt instruments and with this diversification aimed at providing investors
a balance of growth through investment in stocks and of income from investments in debt
instruments.
 Asset Allocation Fund: These Funds may invest its assets in any type of securities at any
time in order to diversify its assets across multiple types of securities & investment styles
available in the market.
 Fund of Fund Scheme: Fund of Funds are those funds, which invest in other mutual funds.
These funds operate a diverse portfolio of equity, balanced, fixed income and money
market funds (both open and closed ended).
 Shariah Compliant (Islamic) Scheme: Islamic funds are those funds which invest in
Shariah Compliant securities i.e. shares, Sukuk, Ijara sukuks etc. as may be approved by
the Shariah Advisor of such funds. These funds can be offered under the same categories
as those of conventional funds.
 Capital Protected Scheme: In this type of scheme, the payment of original investment is
guaranteed with any further capital gain which may accrue at the end of the contractual
term of the Fund. Such funds are for a specific period.
 Index Tracker Scheme: Index funds invest in securities to mirror a market index, such as
the KSE 100. An index fund buys and sells securities in a manner that mirrors the
composition of the selected index. The fund's performance tracks the underlying index's
performance.
 Money Market Scheme: Money Market Funds are among the safest and most stable of all
the different types of mutual funds. These funds invest in short term debt instruments such
as Treasury bills and bank deposits.
 Income Scheme: These funds focus on providing investors with a steady stream of fixed
income. They invest in short term and long term debt instruments like TFCs, government
securities like T-bills/ PIBs, or preference shares.
  Aggressive Fixed Income Scheme: The aim of aggressive income fund is to generate a
high return by investing in fixed income securities while taking exposure in medium to
lower quality of assets also.
 Commodity Scheme: These schemes enable small investors to take advantage of gains in
commodities such as gold through pooled investments. They invest at least 70%of their
assets in commodity futures contracts, which include both cash-settled and deliverable
contracts.

Performance Evaluation of Open-End Mutual Funds:

 Annualized Return
An annualized rate of return is calculated as the equivalent annual return an investor receives over
a given period. Annualized returns are returns over a period scaled down to a 12-month period.
This scaling process allows investors to objectively compare the returns of any assets over any
period. An annualized return is the geometric average amount of money earned by an investment
each year over a given time period. It is calculated as a geometric average to show what an investor
would earn over a period of time if the annual return was compounded

 Absolute Return
Absolute return is the return that an asset achieves over a certain period of time. Absolute return
differs from relative return because it is concerned with the return of a particular asset and does
not compare it to any other measure or benchmark.
Report Date: Saturday, 12 October, 2019

 Money Market (Annualized Return):

Money Market Scheme: Money Market Funds are among the safest and most stable of all the
different types of mutual funds. These funds invest in short term debt instruments such as Treasury
bills and bank deposits.
Evaluation NAV (Today’s Price) Yesterday 30 Days 365 Day
High Alfalah GHP 517.150 Lakson Money 38.91 Lakson 14.53 JS Cash 11.25
performer Cash Fund Market Fund Money Fund
Market
Fund
Low NIT Money 9.8154 First Habib 10.48 Pakistan 11.74 Pakista 9.05
Market Fund Cash Fund Cash n Cash
performer Managemen
(Formerly: Manag
NIT t Fund ement
Government Fund
Treasury
Fund)
Interpretation:
One year ago JS cash fund was the top performer. Then with the passage of time Lakson
was at the top before 30 days till yesterday and now Alfalah GHP Cash fund is the high
 performer money market fund. Previously first Habib Cash Fund was low performer then
it’s performance increased and now NIT is low performer. 365 and 30 days ago PCMF was
offering lower returns.

 Capital protected:
Capital Protected Scheme: In this type of scheme, the payment of original investment is
guaranteed with any further capital gain which may accrue at the end of the contractual term of the
Fund. Such funds are for a specific period.

A-Capital Protected (Absolute Return):

Evaluation NAV (Today’s Price) Yesterday 30 Day 365 Day
High Alfalah 103.708 UBL 0.14 Alfalah 1.66 Allied 7.81
Capital Capital Capital
performer Capital Protect
Protected Preservat
Preservation ion Fund ed
Fund II Fund III Fund
II
Low ABL 10.0112 ABL (0.19) Allied 0.94 UBL 3.01
Special Capital Capital
performer Special Protect
Saving Protected
Saving Fund ed
Fund (ABL Fund Fund III
Special (ABL
Special
Saving Plan
Saving
II) Plan I)

Interpretation: Alfalah fund appears 2 times in list of top performers (once 30 days ago and now
it is showing highest NAV returns). ABL Special Saving Fund is consistently offering low returns.
Yesterday it as negative and now it is lower performer. UBL capital protected fund has increased
its performance as compared to 365 days ago. Allied fund is fluctuating i.e. not in a good form (
appearing in both low and good performers)

B-Capital Protected - Income (Annualized Return):

Evaluation NAV (Today) 1 Day 30 Day 365 Day
High UBL 105.9274 UBL 12.49 UBL 34.00 No High N/A
Special Special
performer Special Savings Savings Performer
Savings Plan VI Plan III
Plan II
Low UBL 101.557 UBL (107.54) UBL 12.08 No Low N/A
Special
performer Special Special Savings Performer
Savings Savings Plan VI
Plan V Plan I
 Interpretation:
There is no consistent high or low performer. Today’s high performer is UBL Plan
II and low performer is UBL Plan V. UBL special Saving Plan VI was a low
performer 30 days ago and it was a high performer 1 day ago, it’s fluctuating.

 Fund of Funds
Fund of Fund Scheme: Fund of Funds are those funds, which invest in other mutual funds. These
funds operate a diverse portfolio of equity, balanced, fixed income and money market funds (both
open and closed ended).
A-Funds of Funds- CPPI (Absolute Return):
Evaluation NAV 1 Day 30 Day 365 Day
High UBL Active 107.0150 UBL Active 0.42 UBL Active 3.67 UBL Active 5.46
Principal Principal Principal
performer Principal Preservation Preservation Preservation
Preservation Plan III Plan III Plan I
Plan I
Low UBL Active 102.5198 UBL Active 0.32 UBL Active 2.61 UBL Active 4.54
Principal Principal Principal
performer Principal Preservation Preservation Preservation
Preservation Plan I Plan II Plan II
Plan III
Interpretation: UBL Plan III was fluctuating 1 day ago it was high and now low performer. UBL
Plan I is showing increase now and 1 day ago it was low performer. UBL Plan II was showing
consistent low performance. Overall in funds of funds CPPI scheme no fund is showing consistent
good performance.
B-Fund of Funds (Absolute Return):
Evaluation NAV 1 Day 30 Day 365 Day
High ABL Financial 112.6406 HBL 0.64 HBL 5.60 Alfalah GHP 7.29
performer Planning Fund Financial Financial Prosperity
(Conservative Planning Planning Planning Fund
Plan) Fund Fund (Alfalah GHP
(Active (Active Conservative
Allocation Allocation Allocation
Plan) Plan) Plan)

Low JS Fund of 53.6200 HBL (0.57) HBL 0.46 ABL Financial (2.48)
performer Funds Financial Financial Planning Fund
Planning Planning (Active Plan)
Fund Fund
(Strategic (Strategic
 Allocation Allocation
Plan) Plan)
Interpretation: HBL (Active Allocation) is consistently showing good performance till yesterday
and now ABL (conservative plan) is at top. HBL strategic allocation is consistently showing bad
performance till yesterday and now JS is at lower position.

 Income (Annualized Return):

Income Scheme: These funds focus on providing investors with a steady stream of fixed income.
They invest in short term and long term debt instruments like TFCs, government securities like T-
bills/ PIBs, or preference shares.
Evaluation NAV 1 Day 30 Day 365 Day
High Atlas 538.23 Faysal 59.38 NAFA 33.93 AWT 13.06
performer Income Savings Governm Income
Fund Growth ent Fund
Fund Securities (Formerl
Savings y: PIML
Fund Income
Fund)
Low NBP 10.111 AWT (36.01) JS (12.82) JS 8.21
performer Savings Income Income Income
Fund Fund Fund Fund
(Formerly:
PIML
Income
Fund
Interpretation: no one is consistently appearing in high performers. Values are fluctuating. JS
income fund is however showing low performance 2 times. Now Atlas is at top and NBP savings
fund is at low position.

 Aggressive Fixed Income (Annualized Return):

Aggressive Fixed Income Scheme: The aim of aggressive income fund is to generate a high return
by investing in fixed income securities while taking exposure in medium to lower quality of asses
also.
Evaluation NAV 1 Day 30 Day 365 Day
High Faysal 108.170 UBL Growth 11.70 Pakistan 17.37 Pakistan 10.69
performer Income & & Income Income Income
Growth Fund Enhance Enhancement
Fund (Formerly: ment Fund
United Growth Fund
& Income
Fund)
Low BMA 8.5124 AKD (8.36) Askari (24.41) AKD 5.07
performer Chandigar Aggressive High Aggressive
Road Income Fund Yield Income Fund
Savings (Formerly: Scheme (Formerly:
AKD Income AKD Income
Fund
Fund) Fund)

Interpretation: Pakistan income enhancement is appearing two times in top performers and now
Faysal fund is at top. AKD aggressive is appearing 2 times in low performers and now BMA is at
a lower position.

 Balanced (Absolute Return):

Balanced Scheme: These funds provide investors with a single mutual fund that invests in both
stocks and debt instruments and with this diversification aimed at providing investors a balance of
growth through investment in stocks and of income from investments in debt instruments.
Evaluation NAV 1 Day 30 Day 365 Day
High Unit Trust 142.5300 Unit Trust 1.38 Unit 8.51 NBP (1.35)
performer of of Trust of Balanced
Pakistan Pakistan Pakistan Fund
(Formerly:
NAFA
Multi
Asset
Fund)
Low Pakistan NBP 0.00 First 2.95 First (16.29)
performer Capital 10.3600 Balanced Dawood Dawood
Market Fund Mutual Mutual
Fund (Formerly: Fund Fund
NAFA
Multi
Asset
Fund)
Interpretation: Unit trust of Pakistan is consistently showing a high performance in balanced
scheme. Pakistan capital market fund is at a lower position. First Dawood is also appearing 2 times
in low performers.

 Asset Allocation (Absolute Return):

Asset Allocation Fund: These Funds may invest its assets in any type of securities at any time in
order to diversify its assets across multiple types of securities & investment styles available in the
market.
Evaluation NAV 1 Day 30 Day 365 Day
High Lakson 152.1066 Allied 1.24 Allied 9.43 Lakson 12.04
performer Asset Finergy Finergy Asset
Fund Fund Allocation
Allocation
Developed Developed
 Markets Markets
Fund Fund
Low Allied 10.1666 NBP 0.00 Lakson (0.25) Faysal (9.72)
performer Finergy Sarmaya Asset Asset
Izafa Allocation Allocation
Fund Fund Developed Fund
(Formerl
Markets
y: NAFA
Asset Fund
Allocatio
n Fund)
Interpretation: Lakson and Allied Finergy funds are appearing in both top and low performers.
Means there are fluctuations in their prices. Performance is not consistent.

 Index Tracker (Absolute Return):

Index Tracker Scheme: Index funds invest in securities to mirror a market index, such as the KSE
100. An index fund buys and sells securities in a manner that mirrors the composition of the
selected index. The fund's performance tracks the underlying index's performance.
Evaluation Types NAV 1 Day 30 Day 365 Day
High AKD Index 11.2516 1.30 10.98 (11.55)
performer Tracker
Fund
Interpretation: AKD is the only fund and performance is increasing over the year.

 Equity (Absolute Return):

Equity Scheme: An equity scheme or equity fund is a fund that invests in Equities more commonly
known as stocks. The objective of an equity fund is long-term growth through capital appreciation,
although dividends and capital gain realized are also sources of revenue.
Evaluation NAV 1 Day 30 Day 365 Day
High Atlas Stock 519.660 JS 1.79 HBL 25.39 UBL (3.32)
performer Market Fund Growth Investment Financial
Fund Fund−Clas Sector
s A Fund
(Formerly
PICIC
Investment
Fund)
Low HBL 6.1807 NAFA (0.01) UBL 7.38 HBL (22.90)
performer Investment Financi Financial Investme
Fund−Class A al Sector nt
(Formerly Sector Fund Fund−Cl
PICIC Fund ass A
Investment (Formerl
Fund) y PICIC
 Investme
nt Fund)

Interpretation: Atlas fund is at top. HBL is appearing twice in low performers. UBL is appearing
in both high and low performers means more fluctuations.

 Shariah Compliant:
Shariah Compliant (Islamic) Scheme: Islamic funds are those funds which invest in Shariah
Compliant securities i.e. shares, Sukuk, Ijara sukuks etc. as may be approved by the Shariah
Advisor of such funds. These funds can be offered under the same categories as those of
conventional funds.
A-Shariah Compliant Money Market (Annualized Return):
Evaluation NAV 1 Day 30 Day 365 Day
High HBL 101.2741 NBP Islamic 13.03 NBP 12.73 Al Ameen 10.14
performer Islamic Money Islamic Islamic Cash
Money Market Money Fund, NBP
Market Fund(Former Market Islamic Money
Fund ly: NAFA Fund Market Fund
Islamic
Money
Market Fund)
Low NBP 10.3717 Meezan 11.65 Meezan 11.45 Meezan Cash 9.45
performer Islamic Cash Fund Cash Fund
Money Fund
Market
Fund
Interpretation: during the previous month NBP was showing good performance and now HBL is
at top and NBP is showing negative returns now. Meezan cash fund is consistently appearing in
low performers.
B-Shariah Compliant Capital Protected Fund (Absolute Return):
Evaluation Types NAV 1 Day 30 Day 365 Day
High NAFA Islamic 105.4749 0.02 4.97 4.25
performer Principal Protected
Fund II
Interpretation: NAFA is the only fund and its NAV is high now.
C-Shariah Compliant Fund of Funds - CPPI (Absolute Return):
Evaluation NAV 1 Day 30 Day 365 Day
High Atlas Islamic 505.69 Al 0.69 Atlas 4.58 JS 9.59
performer Fund of Funds Ameen Islamic Islamic
(Atlas Islamic Islamic Fund of Hybrid
Capital Active Funds Fund
Principal (Atlas of
 Preservation Preserv Islamic Funds
Plan) ation Capital II (JS
Plan IV Preserv Islamic
ation Capital
Plan) Preser
vation
Allocati
on
Plan
III)
Low Meezan 49.353 Faysal 0.01 Faysal 0.89 NAFA 1.64
performer Strategic Sharia Sharia Islamic
Allocation Planning Planning Capital
Fund III Fund Fund Preser
(Meezan (Faysal (Faysal
vation
Sharia Sharia
Capital Plan IV
Capital Capital
Preservation Preserv Preservat
Plan IX) ation ion Plan)
Plan II)
Interpretation: Atlas was high performer 30 days ago and now it again at the top. Meezan is a
low performer and Faysal shariah planning fund is appearing twice in low performers.
D-Shariah Compliant Income (Annualized Return):
Evaluation NAV 1 Day 30 Day 365 Day
High Atlas 521.31 Faysal 30.96 Alhamra 13.78 NBP Islamic 10.73
performer Islamic Islamic Islamic Mahana Amdani
Income Savings Income Fund (Formerly:
Fund Growth Fund NBP Aitemaad
Fund Mahana Amdani
Fund)
Low NBP 9.8276 Askari 8.73 Askari 4.18 Pak Oman 7.90
performer Islamic Islamic Islamic Advantage Islamic
Savings Income Income Income Fund
Fund Fund Fund
Interpretation: Atlas is high performer and NBP is low performer. Askari is appearing twice in
low performers.
E-Shariah Compliant Aggressive Fixed Income (Annualized Return):
Performance Types NAV 1 Day 30 Day 365 Day
evaluation
High Al Ameen 102.0222 8.12 8.16 7.06
performer Islamic
Aggressive
Income Fund
Interpretation: Al Ameen is the only fund and NAV is high.
 F-Shariah Compliant Balanced Fund (Absolute Return):
Evaluation Types NAV 1 Day 30 Day 365 Day
High Meezan 13.8022 0.97 8.51 (5.33)
performer Balanced
Fund
Interpretation: Meezan is the only fund and now performance is better as compared to one year
ago.

G-Shariah Compliant Asset Allocation (Absolute Return):

Evaluation NAV 1 Day 30 Day 365 Days
High Al Ameen 114.8701 Meezan 1.32 Meezan 11.66 HBL 2.35
performer Islamic Asset Asset Islamic
Asset Allocatio Allocation Asset
Allocation n Fund Fund Allocatio
Fund n Fund
Low NBP Islamic 8.5181 Askari (0.02) Askari 0.97 Askari (16.68)
performer Regular Islamic Islamic Islamic
Income Asset Asset Asset
Fund Allocatio Allocation Allocatio
(Formerly: n Fund Fund n Fund
NBP
Aitemaad
Regular
Payment
Fund)
Interpretation: Previously Meezan was consistently showing a good performance and now Al
Ameen is at top. NBP is now showing bad performance and Askari is showing both sometimes
negative and sometimes bad results.

H-Shariah Compliant Fund of Funds (Absolute Return):

Evaluatio NAV 1 Day 30 Day 365 Day
n
High Atlas Islamic Fund 515.570 Al 1.34 JS 29.28 JS Islamic 34.40
performer of Funds (Atlas 0 Ameen Islamic Hybrid
Conservative Islamic Hybrid Fund of
Allocation Islamic Active Fund of Funds
Plan) Allocatio Funds (Mustanad)
n Plan (Musta
XI nad)
Low Meezan Strategic 35.4956 JS (0.26) JS (1.72) Meezan (15.33)
performer Allocation Fund Islamic Hybrid Financial
(MSAP III) Hybrid Fund of Planning
Fund of Funds Fund of
Funds Funds
(MAAP I)
 (Mustan
ad)
Interpretation: Meezan is a low performer and Atlas is a high performer. JS Islamic is not
consistent. It is fluctuating.

I-Shariah Compliant Index Tracker (Absolute Return):

Evaluation Types NAV 1 Day 30 Day 365 Day
High KSE 53.9372 1.54 13.88 (16.51)
performer Meezan
Index Fund
Interpretation: KSE is the only fund. NAV is satisfactory

J-Shariah Compliant Commodities (Absolute Return):

Commodity Scheme:
These schemes enable small investors to take advantage of gains in commodities such as gold
through pooled investments. They invest at least 70%of their assets in commodity futures
contracts, which include both cash-settled and deliverable contracts.
Evaluation Types NAV 1 Day 30 Day 365 Day
High Meezan 72.7161 (0.79) 0.92 30.55
performer Gold Fund
Interpretation: Meezan Gold is the only fund. Yesterday it was offering negative returns and
now its NAV is satisfactory.

K-Shariah Compliant Equity (Absolute Return):

Evaluation NAV 1 Day 30 Day 365 Day
High Atlas 446.5900 Meezan 1.94 Meezan 16.08 AWT (9.85)
performer Islamic Energy Energy Islamic
Stock Fund Fund Stock
Fund Fund
(Formerly:
PIML
Islamic
Equity
Fund)
Low NIT 7.2500 NBP (0.01) AKD 5.41 Meezan (29.32)
performer Islamic Islamic Islamic Energy
Energy Stock Fund
Equity Fund
Fund Fund
(Formerly:
NAFA
Islamic
 Energy
Fund)/
NBP
Islamic
Stock
Fund
(Formerly:
NAFA
Islamic
Stock
Fund)
Interpretation: During the previous month Meezan was at top and now Atlas is at top. NIT is a
low performer. No fund is showing a consistent low performance.