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MUTUAL FUND:
A mutual fund is an investment that allows a group of investors to pool their money and hire a portfolio manager. The manager invests this money (the funds assets) in stocks, bonds or other investment securities (or a combination of stocks, bonds and securities). The fund manager then continues to buy and sell stocks and securities according to the style dictated by the funds prospectus.

TYPES OF MUTUAL FUND:

There are two basic types of mutual funds. 1. OPEN-END MUTUAL FUND:

A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell. The majority of mutual funds are open-end. By continuously selling and buying back fund shares, these funds provide investors with a very useful and convenient investing vehicle.
2. CLOSE-END MUTUAL FUND:

A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.

OPEN-END MUTUAL FUNDS OF JS INVESTMENT:

1. JS ISLAMIC FUND (JS ISF): JS ISF aims to grow investors capital in the long term in adherence with principles of Shariah compliance as advised by the Shariah Advisory Board (SAB) of this fund while ensuring liquidity. The fund investments are limited to asset classes approved by the Shariah Advisory Board and all companies under investment consideration are regularly screened for Shariah compliance. 2. JS INCOME FUND (JS IF): JS IF is a mutual fund that invests in high quality fixed income and money market instruments to provide returns comparable to those offered by most term deposits while ensuring daily liquidity like current or savings accounts 3. UNIT TRUST OF PAKISTAN (UTP): UTP is a balanced fund that aims to preserve and grow investors capital in the long term while providing a regular stream of current income on an annual basis. The fund operates a diverse portfolio of equity and fixed income investments whereby the equity component is meant to provide the growth in capital while dividends on the equity component along with the fixed income investments help

generate the current income. 4. JS AGGRESSIVE ASSET ALLOCATION FUND (JS AAAF):
JS AAAF is a dynamic asset allocation fund that aims to achieve superior risk adjusted growth in investors capital over the long term. The fund operates a diverse portfolio of equity and fixed income investments and it may constantly adjust the mix as equity markets rise or fall and the economy strengthens or weakens. 5. JS KSE 30 INDEX FUND (JS KSE 30): The main focus of the JS KSE 30 Fund is to approximate the performance of KSE-30 Index, as adjusted for transaction and other costs, by investing in most or all of the common stocks that comprise the KSE-30 Index in proportions in which they are represented in the Index. 6. JS LARGE CAP. FUND (JS LCF): JS LCF, after conversion into an Open-end Scheme that aims to benefit from an attractive Capital Market in an economy with growth potential, to maximize the total investment return consisting of a combination of capital appreciation income. Consistent with its Investment Objective, the Fund shall invest primarily in equity securities of listed Large-Cap companies with market capitalization of over Rupees one billion. The remaining Funds shall be invested in Authorized Investments including cash

and/or near cash instruments which include cash in bank accounts, and Government securities not exceeding ninety (90) days maturity. 7. JS FUND OF FUNDS (JS FOF): JS FoF is a fund of funds that aims to grow investors capital in the long term while diversifying the asset manager risk bundled together with the benefits of an asset allocation fund. The fund operates a diverse portfolio of equity, balanced, fixed income and money market funds (both open and closed ended) with the option to adjust the asset mix as equity markets rise or fall and the economy strengthens or weakens. 8. JS AGGRESSIVE INCOME FUND (JS AIF): JS AIF aims at generating current income on investments while maintaining the prospects of capital appreciation by investing in a diversified portfolio of money market and fixed income instruments. The fund may aggressively adjust asset weightings to take advantage of directional macro and micro economic trends and may hold some or even all of its assets in cash to either provide liquidity or for defensive purposes.

9. JS PRINCIPAL SECURE FUND I (JS PSF-I): JS PSF I aim to combine a strategy of providing 100% security of initial investment and the potential to beat term deposit returns through exposure asset allocation strategy. 10. JS CASH FUND (JS CF): JS CF is an open-end Money Market Scheme that mainly invests in low risk short-term fixed income instruments including money market instruments to provide a regular and reasonable return to investors while ensuring high liquidity. The fund shall invest primarily in short duration instruments within Pakistan and may even hold some or all of its assets in cash for the purpose of maintaining liquidity.

OPEN-END MUTUAL FUNDS OF ARIF HABIB INVESTMENT:

1. PAKISTAN STOCK MARKET FUND (PSM): The objective of the fund is to provide investors long term capital appreciation from its investment in Pakistani equities. Fund Profile Pakistan Stock Market Fund (PSM) is an open end equity fund that invests in quality stocks listed In Pakistan. The fund is actively managed and fundamental research drives the investment process. Fundamental outlook of sectors/companies and DCF (discounted cash flow) valuations are the primary factors in sectors allocation and stock selection. Major portion of the funds portfolio is high quality liquid stocks. The funds which are not invested in equities are required to be kept in bank deposits and shortterm money market instruments/ placements. PSM is a long only fund and cannot undertake leveraged investments. Under the NBFC Rules, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs. 2. PAKISTAN INTERNATIONAL ELEMENT ISLAMIC ASSET ALLOCATION FUND (PIIF): The objective of the fund is to provide medium to long term capital appreciation through investing in Shariah compliant investments in Pakistan and internationally. Fund Profile Pakistan International Element Islamic Asset Allocation Fund (PIIF) is an Islamic open-end asset allocation fund, which seeks to achieve its objective through investing in a portfolio of Shariah compliant investments diversified across the capital markets of Pakistan as well as keeping a limited exposure internationally. The fund is managed through an active management strategy with dynamic allocations towards different asset classes. The investment process is driven by fundamental research. The domestic portfolio of the fund primarily invests in fundamentally strong Shariah compliant equities, while some portion of the fund is also allocated towards high quality Sukuks and other types of Shariah compliant instruments offering higher comparative returns. For equities investment, fundamental outlook of sectors/companies and DCF (discounted cash flow) valuations are the primary factors in sectors allocation and stock selection. Major portion of the funds portfolio is high quality liquid stocks. International investments up to 30% of the net assets are made in Shariah compliant mutual funds investing into various world markets. Allocation in various international mutual funds is decided on the basis of economic and capital market outlook for major world economies and track record of the fund managers. PIIF is a long only fund and cannot undertake leveraged investments. Under the NBFC Rules, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs. 3. PAKISTAN INCOME FUND (PIF): The objective of the fund is to deliver returns primarily from debt and fixed income investments without taking excessive risk. Fund Profile Pakistan Income Fund (PIF) is an open end fund, which invests in corporate securities, Government securities; money market placements, TDRs and short maturity reverse repurchase transactions. The overall duration of the portfolio is kept below 2 years, in order to keep interest rate risk at a relatively low and manageable level. PIF is a long only fund and

cannot undertake leveraged investments. Under the NBFC Rules, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs. 4. PAKISTAN CAPITAL MARKET FUND (PCM) - A BALANCED FUND: The objective of the Fund is to provide investors a mix of income and capital growth over medium to long term from equity and debt investments. Fund Profile Pakistan Capital Market Fund (A Balanced Fund) (referred to as PCM) is an open end balanced fund that invests in a range of asset classes such as equity and debt in Pakistani market. The asset allocation to equities and debt is made on the basis of relative attractiveness of each asset class. The investment process is driven by fundamental research. For equities investment, fundamental outlook of sectors/companies and DCF (discounted cash flow) valuations are the primary factors in sectors allocation and stock selection. For debt investment, interest rate outlook is the key determining factor and allocation to this segment is increased when the yields are comparatively higher compare to the total returns on equities. Investment is made in corporate bonds (investment grade) and government bonds. Cash is kept in deposits with highly rated banks. 5. METROBANKPAKISTAN SOVEREIGN FUND (MSF): The objective of the fund is to deliver income primarily from investment in government securities. Fund Profile Metro-Bank Pakistan Sovereign FundPerpetual (MSF) is an open end fund, which invests in bonds and debt securities issued by the Government of Pakistan as well as Reverse Repurchase transactions (Reverse-REPOs) against government securities. MSF is a long only fund. Under the NBFC Rules, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs. 6. PAKISTAN CASH MANAGEMENT FUND (PCF): The Fund aims to deliver regular income and provide high level of liquidity primarily from short duration government securities investments. Fund Profile Pakistan Cash Management Fund (PCF) is an open end Fund, which invests in government securities; mainly Treasury Bills and short maturity reverse repurchase transactions against Government Securities. The un-invested funds are kept in deposits with minimum AA-rated commercial banks. The overall maturity of the portfolio is kept below 90 days, in order to keep interest rate risk at a relatively low and manageable level and provide high liquidity to investors comparable to current bank deposits. PCF is a long only Fund. 7. PAKISTAN INCOME ENHANCEMENT FUND (PIEF): The objective of the fund is to deliver return from aggressive investment strategy in debt and fixed income market. Fund Profile Pakistan Income Enhancement Fund (An Aggressive Fixed Income Fund) (referred to as PIEF) is an open end fund which primarily invests in debt and fixed income instruments and may also take limited exposure in structured products. The maximum duration of the fund shall not exceed 3 years. 8. PAKISTAN CAPITAL PROTECTED FUND-FIXED INCOME SECURITIES: The objective of the Fund is to provide 100% capital protection (net of front-end load) and maximize the return earned from Fixed Income, Money and Debt Market instruments. Fund Profile Pakistan Capital Protected Fund-Fixed Income Securities (PCPF-FIS) is an open end Fund. Consistent with the objective of PCPF-FIS, about 81.85% of the Fund is invested in bank deposits with Habib

Metropolitan Bank that will yield a future value at maturity equivalent to the initial size of the Fund (plus fund expenses), providing 100% protection of total initial investment (net of all expenses and front end load) to the investors. The remaining fund is invested in fixed income securities aimed at providing investors an opportunity to earn high return relative to bank deposits. Under the NBFC Rules, the Fund is not allowed to borrow. 9. AH DOW JONES SAFE PAKISTAN TITANS 15 INDEX FUND: The Fund aims to provide investors with a total return that before expenses, closely corresponds to the return of the Dow Jones SAFE Pakistan Titans 15 Index by tracking the return of Index, thus providing exposure to the constituents of Index in a single security. Fund Profile: AH Dow Jones SAFE Pakistan Titans 15 Index Fund (AHDJPF) is an Open End Index Tracker Fund which aims to provide investors with a total return that closely corresponds to the return of the Dow Jones SAFE Pakistan Titans 15 IndexSM. The AHDJPF will employ a passive management approach to replicate the performance of the constituents of Dow Jones SAFE Pakistan Titans 15 IndexSM. The Fund will invest all or substantially all, of its assets in securities that make up the target index. Excess cash, if any, may be kept in daily-return bank deposits or short term money market instruments. The Fund is not allowed to take leveraged investment positions. This fund also provides a low cost exposure to a portfolio primarily holding blue-chip liquid stocks selected on the basis of free float market capitalization and liquidity. Salient Features

Only Pakistani fund structured on an index by International Index Provider. Single Ticket Acquisition Small Ticket Entry Lower Transaction Costs Optimal Liquidity High Correlation with KSE-100 (Back-tested 5-years [Aug 2005 - July 2010])

10. PAKISTAN STRATEGIC ALLOCATION FUND (PSAF): The objective of the fund is to provide investors capital growth over medium to long term primarily from investment in more liquid Pakistani equities. Fund Profile Pakistan Strategic Allocation Fund (PSAF) is an open end strategic allocation fund which primarily invests in equities based on a quantitative model. The Fund takes advantage of equity market volatility and buys equities when they are underpriced and sells equities when they are overpriced. DCF (discounted cash flow) valuations are pivotal for stocks selection in the portfolio. The fund is mostly invested in liquid stocks. Under the NBFC Rules, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs.

11. PAKISTAN PREMIER FUND (PPF) : The objective of the Fund is to provide investors long term capital appreciation from its investment in Pakistani equities. Fund Profile Pakistan Premier Fund (PPF) is a open end equity fund. The fund takes a long term value investing approach and the portfolio is diversified across all major sectors with stocks having long term positive fundamentals. PPF is a long only fund. The funds which are not invested in equities are required to be kept in bank deposits and short-term money market instruments/ placements.

OPEN-END MUTUAL FUNDS OF ALLIED BANK:

1. ABL INCOME FUND: Introduction: ABL Income Fund (ABL-IF) is an open end, fixed income fund with no direct exposure to the stock market. The objective of ABL Income Fund is to earn superior risk adjusted rate of return by investing in a blend of short, medium, and long-term instruments, both within and outside Pakistan. ABL-IF would benefit Investors who want to earn a competitive return and avail tax benefits also having the ease of withdrawing money at their convenience Salient Features:

Minimum investments can be as low as Rs. 5,000/- for Growth Units and Rs. 500,000/- for Income Units. Further re-investments can be made from as little as Rs.1, 000/- only. No lock in period - Ease of withdrawing money anytime Exemption from Zakat on submission of relevant Affidavit. Benchmark: 1 Month KIBOR 2. ABL STOCK FUND:

Introduction: ABL Stock Fund (ABL-SF) is an open end equity fund. The objective of ABL-SF is to provide higher risk adjusted returns to the investors by investing in diversified portfolio of equity instruments offering capital gains and dividends. It would benefit Investors seeking higher growth on capital with high risk exposure and availing tax benefits with the ease of withdrawing money at their convenience. Salient Features:

Minimum investment from Rs. 5,000/Encashment anytime Tax Exempt (as per Current Tax Law) Tax Credit of up to Rs.100,000/- for salary individuals (as per Current Tax Law) Suitable for investors with a long term horizon

3. ABL ISLAMIC CASH FUND:

Introduction: ABL Islamic Cash Fund (ABL-ICF) is a Shariah compliant, open end, money market fund having no direct or indirect exposure to shares/stock market or long term debt instruments.

The objective of ABL-ICF is to seek maximum possible preservation of capital and offer steady rate of return by investing in liquid Shariah compliant instruments. It benefits Investors seeking Shariah compliant, low risk investments and consistent returns. Given its highly liquid profile, the fund can be used for both short term and long term investment needs. Salient Features:

Minimum Investment Rs.5,000/-(Growth Units) Subsequent Investment Rs.1,000/Load (Front End/Back End) Nil Minimum Investment Period No Minimum Holding Period Required Pricing Mechanism Forward Encashment Within 2-6 working days Tax Exemption As per Current Tax Laws Tax Credit Up to Rs.75,000/- for salary individuals (as per Current Tax Law)

4. ABL CASH FUND:

Introduction: ABL Cash Fund (ABL-CF) is an open end, money market fund with no direct or indirect exposure to shares, TFCs and long term debt instruments. The objective of ABL-CF is to provide investors, consistent returns with a high level of liquidity, through a blend of money market and sovereign debt instruments. It beneifits Investors seeking low risk investments and consistent returns with ready access to funds. Given its highly liquid profile, the fund can be used by retail and institutional investors for efficient cash management. Salient Features:

Minimum Investment Rs.5,000/-(Growth Units) Subsequent Investment Rs.1,000/Load (Front End/Back End) Nil Minimum Investment Period No minimum holding period. Redeem at will. Pricing Mechanism Backward Encashment Same day* Otherwise the constitutive documents provide for six working days to pay redemption proceeds Tax Exempt As per current tax laws Tax Credit Up to Rs.100,000/- for salary individuals (as per Current Tax Law)