INVESTMENT PORTFOLIO AND MANAGEMENT

TYPES OF MONEY MARKET MUTUAL FUNDS

Submitted To

Miss Shaista

Submitted By
 Fatima Riaz

Roll # 61651011

Class: Bs-4th

7th Semester

Session (2016-2020)

Lahore College For Women University, Lahore.

Money Market Mutual fund:

A money market fund is a kind of mutual fund that invests only in highly liquid instruments
such as cash, cash equivalent securities, and high credit rating debt-based securities with a
short-term, maturity (less than 13 months). As a result, these funds offer high liquidity with a
very low level of risk.

1-ABL cash fund:

ABL cash fund is an open-end money market scheme. The objective of ABL-CF is to provide
investors, consistent result with a high level of liquidity , through a blend of money market
and sovereign debt instruments.

Key Features

 The Fund invests in high quality instruments with issue or entity rating of minimum
‘AA’,
 It serves as an alternative to traditional savings accounts and also used in efficient
asset allocation strategy to provide balance in the portfolio.

2-AKD cash fund:

AKD cash fund is an open-end money market scheme.

Objective:

The Objective of AKD Cash Fund (AKDCF) is to provide optimum returns consistent with
minimal risk from a portfolio constituted of high quality short term securities/instruments,
which will provide liquidity. The fund will exclusively invest in highly secure (‘AA’ and
above) short term debt instruments such that the weighted average maturity of its net assets
will stay below 90 days.

3-Alfalah GHP cash fund:

AGCF seeks to provide a regular stream of income at a comparative rate of return, while
preserving capital to the extent possible, by investing in assets with low risk and a high
degree of liquidity. AGCF actively manages a diversified portfolio of short term money
market instruments in its pursuit of providing a regular stream of income at a competitive rate
of return while preserving capital. The fund manager actively manages the duration of the
fund, within allowable parameters, in order to optimize returns on risk adjusted basis.

Key benefits:

 Low risk investment

 Potentially steady returns

 High Liquidity

 Tax benefits

4-BMA empress Cash fund

The BMA Empress Cash Fund is a professionally managed cash fund, which aims to
minimize risk, maximize liquidity and generate a competitive rate of return. This will be
achieved by concentrating portfolio allocation in AA rated banks and short duration
sovereign rated securities.

5-NIT Money Market Fund

NIT has launched the NIT Money Market Fund (NIT-MMF) (formerly NIT-GTF). It is an
open end Money Market Fund, investing primarily in short-term Government securities, Bank
Placements and any other Money Market Instrument with maximum weighted average time to
maturity not exceeding 90 days.
NIT-MMF (formerly NIT-GTF) is a low risk money market fun
Objective
NIT-MMF (formerly NIT-GTF) would focus on ensuring a high level of portfolio liquidity,
while maintaining a portfolio composition which yields returns in excess of the benchmark.
Key benefits:
 Competitive Returns
 Lowest Management
 Professional fund management expertise
 Risk diversification

 No minimum holding period

 Ease of redemption

 No penalty on withdrawal

6-Atlas Money Market Fund

The Fund invests in short term money market instruments with a maximum time to maturity
of six months. This is intended to reduce risk while maintaining liquidity. The Fund’s
investment strategy is based on fundamental credit analysis of counterparties. The Fund
primarily invests in short term government securities/bank deposits and other short term
money market instruments.

Objective is to provide its unit holders competitive returns from a portfolio of low risk, short
duration assets while maintaining high liquidity.

Key benefits:

Atlas Money Market Fund is a conventional avenue of investment in mutual funds suitable for
individuals, corporate clients and retirement schemes ranging from a short to long term
investment.

 Competitive returns
 Online access to individual accounts
 Professional Fund Management Expertise
 Required minimum investment as low as Rs. 5,000
 Easy withdrawal of money
 No minimum holding period
 Risk Diversification
 Exemption from Zakat (on submission of Affidavit)

7-First Habib Cash Fund

First Habib Cash Fund (FHCF) is an open-ended Money Market Fund having an objective of
providing its unit-holders competitive returns from a portfolio of low risk, short duration
assets while maintaining high liquidity. FHCF invests in term deposits with commercial
banks and

Government Securities (T-Bills). Rating of any security in the portfolio will not be lower than
“AA”. FHCF will have no exposure in equities or long term debt instruments.

8-HBL money market fund

HBL Money Market Fund is an open end money market fund managed by HBL Asset
Management Limited, a wholly owned subsidiary of HBL.

To seek high liquidity and competitive return for investors by investing in low risk securities
of shorter duration and maturity.

key Benefits

 Holding Period: No fixed term; can be redeemed at any time

 Minimum Investment Rs. 1,000

 Subsequent investment Rs. 1,000

 Regular Income Options: Short term needs are catered to by monthly, quarterly or
annual payments

 Bank Financing: Units can be used as a collateral against financing

 Risk Level: Low

9-Faysal money market fund

Faysal Money Market Fund (FMMF) aims to generate competitive returns with minimum risk
and enhanced liquidity by investing primarily in short-term government securities, term
deposits and money market instruments with weighted average time to maturity of Net Assets
not exceeding 90 days.
Key Benefits

 Low credit risk

 No minimum holding period of investment

 Encashment without any penalty

 The fund is CDC eligible and its units can also be used as collateral at the PSX

 No front-end load

 Invest with as low as PKR 5,000/-

 Exemption from Zakat on submission of Affidavit

10-HBL Cash fund

HBL Cash Fund is an open end Fund managed by HBL Asset Management Ltd, a wholly
owned subsidiary of HBL.

Objective:

The investment objective of the Fund is to provide competitive returns to its investors
through active investments in low-risk portfolio of short duration, while maintaining high
liquidity. The Fund will aim to maximize returns through efficient utilization of investment
and liquidity management tools.

key benefits:

 Holding Period: No fixed term; can be redeemed at any time

 Minimum Investment Rs. 1,000

 Subsequent investment Rs. 1,000

  Regular Income Options: Short term needs are catered to by monthly, quarterly or
annual payments

 Bank Financing: Units can be used as a collateral against financing

 Risk Level: Low

11-Lakson money market fund

Lakson Money Market Fund is an open-end fund incorporated in Pakistan.

Objective:

The Fund's objective is to provide stable and competitive returns in line with the money
markets with low volatility consistent with capital preservation by constructing a liquid
portfolio of low risk short term investments.

12-JS cash fund

JS Cash Fund (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 return to investors while maintaining high liquidity with minimum downside risk. JS
CF also manages to seek preservation of capital, liquidity and competitive yields.

Benefits of Investing

 Same-day redemption facility available.

 Better expected returns vis-à-vis bank accounts
 Low volatility and high liquidity
 Entitled to tax credit (rebate) under the prevailing tax laws
 No charges on redemption

Performance Evaluation :

Fund Names 1 day 30 day 365 day

1-ABL cash fund 12.81 12.91 10.72

2-AKD cash fund 12.83 12.42 9.58

3- Alfalah GHP cash 12.74 13.23 11.00
fund
4- BMA empress 17.40 12.56 10.34
Cash fund
5- NIT money 13.41 12.92 10.53
market fund

6-Atlas money 12.99 13.18 10.61

market fund
7-First Habib Cash 13.21 13.09 10.39
Fund

8-HBL money 12.65 12.66 10.09

market fund
9-Faysal money 12.91 13.02 10.63
market fund

10-HBL Cash fund 13.02 13.08 10.55

11-Lakson money 13.61 13.40 10.49

market
12-JS cash fund 13.51 13.36 11.16

 As shown in table Amongst the prices of money market mutual funds , ABL cash
fund against the AKD cash fund performed better as it’s value increases from
AKD cash fund (10.72-9.58) by 1.14.

 Among the Alfalah GHP cash fund and BMA cash fund, Alfalah GHP cash fund
performs better at the end of 365 days (11.00-10.34) by 0.66.
  Next comparison, among the Atlas money market and NIT money market fund,
shows that Atlas money market fund is better performer than NIT money market
fund by price difference (10.61-10.53) to 0.08.

 Next, as compared to HBL money market fund and First Habib cash fund First
Habib cash fund leapt by 0.3 (10.39-10.09)

 Faysal money market fund as shown in table is performing best than HBL cash
fund as its price is higher i.e. 10.63 than price of HBL cash fund that is 10.55 .It
means Faysal perform better than HBL cash fund by difference of 0.08.

 Last comparison among JS cash fund and Lakson money market indicates that
JS’s price become high at the end of year than Lakson money market fund by
difference 0.67 (11.16-10.49). Hence performance enhances.

Conclusion:

Conclusion is that there are six funds, (as ABL cash fund, Alfalah GHP cash fund , Atlas
money market fund , First Habib Cash Fund ,Faysal money market fund and JS cash fund), in
the money market that performing better than other six which are AKD cash fund , BMA
empress Cash fund ,NIT money market fund ,HBL money market fund ,HBL Cash fund and
Lakson money market.

As the differences of prices indicates that ABL cash fund is higher performer as its difference
if high i.e. 1.14 And First Habib money market is less performer as less difference exists i.e.
0.3.