MUTUAL FUNDS

GROUP MEMBERS

• Umar Arif Mughal • G1F16MCOM0029

• Talha Abid Butt • G1F16MCOM0047

• Rana Frasat Zaman • G1F16MCOM0046

• Shahzad Ahmad Cheema • G1F16MCOM0035

WHAT IS MUTUAL
FUNDS
MUTUAL FUNDS

It is a collective investment scheme

which specializes in investing a pool of money

collected from investors for the purpose of investing in securities

TYPES OF MUTUAL FUNDS

There are basically

two types of
Mutual Funds:

Closed-Ended Open-Ended
Mutual Funds Mutual Funds
OPEN ENDED

mutual funds which continually create new units or redeem issued

units on demand
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.

NIT National Investment Trust

CLOSE ENDED

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.

Mutual Funds Associate of Pakistan

ABOUT: NATIONAL INVESTMENT TRUST

first Asset Management Company of Pakistan , Founded

1962

had Funds under management of approximately Rs. 97 billion,

with around 55,534 unit holders as on December 31, 2017

NIT's distribution network comprises of 23 Branches

BANK LINKED WITH NIT

Habib
National Bank of
MCB Bank Ltd. Habib Bank Ltd. Metropolitan Askari Bank Ltd.
Pakistan
Bank Ltd.

Bank Al Habib Bank Al Falah

Soneri Bank Ltd. United Bank Ltd. Allied Bank Ltd.
Ltd. Ltd.

Summit Bank Ltd

NIB Bank Ltd. (formerly Arif
Habib Bank Ltd)
ABOUT: MUTUAL FUNDS ASSOCIATION OF
PAKISTAN (MUFAP)

trade body for Pakistan’s multi billion rupees asset management

industry

Manage wide variety of investment vehicles including stocks, bonds,

money market instruments, government securities and bank deposits

formed in 1996 by Mr. Zaigham Mahmood Rizvi, ex-Chairman and

founder member
MUTUAL FUNDS ASSOCIATION OF PAKISTAN
(MUFAP)

Fee

management Load
fees Charges
CATEGORIES OF MUTUAL FUND

Balanced Asset Allocation Fund of Fund

Equity Scheme
Scheme Fund Scheme

Shariah Capital
Index Tracker Money Market
Compliant Protected
Scheme Scheme
(Islamic) Scheme Scheme

Aggressive Fixed Commodity

Income Scheme
Income Scheme Scheme
NATIONAL INVESTMENT TRUST FUNDS TYPES

Equity Income Pension

Funds Funds Funds

NIUT GBF PF

Islamic Equity
IF IPF
Funds

State
Enterprise GTF
Fund

IIF
WHY INVESTMENT IN MUTUAL FUNDS

Mutual Funds
Investing simple

Accessible

Affordable

Tax Advantages
ADVANTAGES OF MUTUAL FUND

Professional
Accessibility Liquidity Diversification
Management

AMC evaluates all

money across
units are easy to Easily convertible the opportunities
number of
buy at any time that arises in the
securities
market

Investors do not
portfolio reduces Carefully examine
have to find a
the investors’ risk & take decision
buyer

the fund buys back

(redeems) the
units
HOW TO INVEST IN MUTUAL FUNDS

The individual investor is required to provide the following at the designated sales points of
the Asset Management Company
• Copy of CNIC
• Application / Account opening Form
• Purchase of Units Form
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
CALCULATION OF NIUT FUNDS

• Suppose you have 100,000 Rupees and willing to invest in mutual funds the offer rate is
RS 79.75 and the Repurchase rate is Rs 77.42
• Then
• 100000/77.42=1292 units
• In future if Rs 80 per unit
• 1292*80=103332
• 103332-100000=3332
CALCULATION OF NIUT FUNDS

• If Investor wishing withdraw then he/she paid capital gain tax

If tax Rate is 12.5% then (3332*12.5%)=416
• If he/she keep investment he will gain dividend at 30th June
• Suppose if dividend is Rs 5 per share then investor gain RS 6460
• Suppose withholding tax is 12.5%
• Then investor pay Rs 807 tax
• Then is after tax profit is = 5653
CALCULATION OF NIUT FUNDS

• If the investor not willing to then units are issued against dividend
• Suppose unit price are reached at Rs 90 then
• Price – dividend
• 90-5=85
• Dividend profit / Unit price
• 5600/85=66 units issued
• 1292+66=1358