Investment and Portfolio Management

Assignment Topic:
MUFAP and Mutual Funds

Submitted to: Ms. Shaista Jabeen

Submitted by: Maheen Ameen
Roll No: 61651024
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: Friday 11 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 517.150 Lakson 38.91 First 15.49 JS 11.25
performer GHP Cash Money Habib Cash
Fund Market Cash Fund Fund
Fund
Low NIT Money 9.8154 First Habib 10.48 Pakistan 11.74 Pakist 9.05
performer Market Cash Fund Cash an
Fund Manage Cash
(Formerly: ment Manag
ement
NIT Fund
Fund
Government
Treasury
Fund)
  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
performer Capital Capital Preservatio Protect
Preservation Protected n Fund II ed
Fund II Fund III Fund

Low ABL 10.0112 ABL (0.19) Allied 0.94 UBL 3.01

Capital Capital
performer Special Special Protected Protect
Saving Saving Fund ed
Fund (ABL Fund Fund III

Special (ABL
Special
Saving Plan
Saving
II) Plan I)

B-Capital Protected - Income (Annualized Return):

Evaluation NAV (Today’s 1 Day 30 Day 365 Day

Price)
High UBL 105.9274 UBL 12.49 UBL 34.00 No High N/A
Special Special
performer Special Savings Savings Performer
Savings Plan IV Plan III
Plan II
Low UBL 101.5316 UBL 107.54 UBL 12.08 No Low N/A
Special
performer Special Special Savings Performer
Savings Savings Plan VI
Plan V Plan I
  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

B-Fund of Funds (Absolute Return):

Evaluation NAV 1 Day 30 Day 365 Day

High ABL 112.6406 HBL 0.64 HBL 5.60 Alfalah GHP 7.29
performer Financial Financi Financial Prosperity
Planning al Planning Planning Fund
Fund Plannin Fund (Alfalah GHP
(Conservativ g Fund (Active Conservative
(Active Allocation Allocation
e Plan)
Allocati Plan) Plan)
on
Plan)
Low JS Fund of 53.6200 HBL (0.57) HBL 0.46 ABL Financial (2.4
performer Funds Financi Financial Planning Fund 8)
al Planning (Active Plan)
Plannin Fund
g Fund (Strategic
(Strate Allocation
gic Plan)
Allocati
on
Plan)
  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 38.27 AWT 13.06
Savings Governmen Income
performer Income Growth t Securities Fund
Fund Fund Savings (Formerly:
Fund PIML
Income
Fund)
Low NBP 10.111 NBP (93.64) JS Income (12.82) JS 8.21
Government Fund Income
performer Savings Securities Fund
Fund Plan I

 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 11.70 Pakistan 17.37 Pakistan Income 10.69
Income Enhancement
performer Income Growth & Enhancem Fund
& Income ent Fund
Growth Fund
Fund (Formerly:
United
Growth &
Income
Fund)

Low BMA 8.5124 AKD (8.36) Askari (24.41) AKD Aggressive 5.07
Aggressive High Yield Income Fund
performer Chandig Income Fund Scheme (Formerly: AKD
arh Road (Formerly: AKD Income Fund)
Income Fund)
Savings
Fund
  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 1.38 Unit 8.51 HBL (1.76)
Trust of Trust of Multi
performer of Pakistan Pakistan Asset
Pakistan Fund

Low Pakistan First 0.38 First 2.95 First (16.29)

Dawood Dawood Dawood
performer Capital 10.3600 Mutual Mutual Mutual
Market Fund Fund Fund
Fund

 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 10.0418 MCB 0.03 Lakson (0.25) Faysal (9.72)
performer Finergy Pakistan Asset Asset
Frequent Allocation Allocation
Fund Payout Developed Fund
Fund
Markets
Fund

 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

 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 519.6600 JS 1.79 HBL 25.39 UBL (3.32)
performer Market Growth Investmen Financia
Fund Fund t l Sector
Fund−Cla Fund
ss A
(Formerly
PICIC
Investmen
t Fund)
Low HBL 6.1807 MCB 1.04 UBL 7.38 HBL (22.90)
performer Investment Pakista Financial Investm
Fund−Class n Sector ent
A Stock Fund Fund−Cl
(Formerly Market ass A
Fund (Formerl
PICIC
y PICIC
Investment Investm
Fund) ent
Fund)

 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 12.68 Al Ameen 10.12
performer Islamic Money Islamic Islamic
Money Market Money Cash Fund,
Market Fund(Form Market NBP Islamic
Fund erly: NAFA Fund Money
Islamic
Market
Money
Market Fund
Fund)
Low NBP 10.3717 Meezan 11.65 Meeza 11.45 Meezan 9.45
performer Islamic Cash Fund n Cash Cash Fund
Money Fund
Market
Fund

B-Shariah Compliant Capital Protected Fund (Absolute Return):

evaluation Types NAV 1 Day 30 Day 365 Day

High NAFA Islamic 105.4749 0.87 5.34 3.79
performer Principal
Protected Fund
II

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 9.46
performer Fund of Funds Ameen Islamic Islamic
(Atlas Islamic Islamic Fund of Hybrid
Capital Active Funds Fund
Preservation Principal (Atlas of
Preserv Islamic
Plan) Funds
ation Capital
Plan IV Preserv II (JS
ation Islamic
Plan) Capital
Preser
vation
Allocati
on
 Plan
III)
Low Meezan 49.353 Faysal 0.01 Faysal 0.89 NAFA 1.59
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)

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 10.72
performer Islamic Islamic Islamic Mahana
Income Savings Income Amdani Fund
Fund Growth Fund (Formerly: NBP
Fund Aitemaad
Mahana
Amdani Fund)
Low NBP 9.8276 Askari 8.73 Askari 4.18 Pak Oman 7.90
performer Islamic Islamic Islamic Advantage
Savings Income Income Islamic Income
Fund Fund Fund Fund

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

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

G-Shariah Compliant Asset Allocation (Absolute Return):

Evaluation NAV 1 Day 30 Day 365 Days

High Al Ameen 114.870 Meezan 1.32 Meezan 11.66 HBL 2.35
performer Islamic 1 Asset Asset Islamic
Asset Allocatio Allocation Asset
Allocation n Fund Fund Allocatio
Fund n Fund
Low NBP 8.5181 Askari (0.02) Askari 0.97 Askari (16.68)
performer Islamic Islamic Islamic Islamic
Regular Asset Asset Asset
Income Allocatio Allocation Allocatio
Fund n Fund Fund n Fund
(Formerly:
NBP
Aitemaad
Regular
Payment
Fund)

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

Evaluatio NAV 1 Day 30 Day 365 Day

n
High Atlas Islamic 515.5700 Al 1.34 JS 29.28 JS Islamic 34.40
performer Fund of Funds Ameen Islamic Hybrid
(Atlas Islamic Hybrid Fund of
Conservative Active Fund Funds
Allocation Allocati of (Mustanad)
on Plan Funds
Islamic Plan)
XI (Musta
nad)
Low Meezan 35.4956 JS (0.26 JS (1.72 Meezan (15.33)
performer Strategic Islamic ) Islamic ) Financial
Allocation Hybrid Hybrid Planning
Fund (MSAP Fund of Fund Fund of
III) Funds of Funds
Funds (MAAP I)
 (Musta (Musta
nad) nad)

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

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

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 AKD (0.11) AKD 5.41 Meezan (29.32)
performer Islamic Islamic Islamic Energy
Equity Stock Stock Fund
Fund Fund Fund