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Foreword:

We are the students of BBA (Finance) and our Instructor of subject


“Investments and Portfolio Management” give us an assignment regarding to
the ‘Performance of Two Mutual Funds’. He require from us to tell him that
which fund is performing better and giving better yield as he want to make
some investments. We have learnt a lot of things about mutual funds. So, it
is also helpful for us to gain some practical knowledge.

Acknowledgement:
We are very thankful to our Honorable teacher Mr. M. Riaz who
gave us the best understanding about the working of Mutual Funds and
Stock Market as well. He made familiar us with deep and broad knowledge of
investing tools which will always be a guideline for all of us in our
professional life.

Overview of the Assignment:


We all group members selected two open-end mutual funds
named MCB Dynamic Cash Fund (MCB DCF) and ABL Income Fund (ABL-IF).
We took all key contents of both funds to compare their performance which
mainly comprises of basic information, technical information, assets
allocation, credit quality of portfolio and annual as well as last month returns.
We have presented a meticulous comparison of both funds for excellent
understanding of that person who has any sort of interest in this study. After
the detailed analysis of both mutual funds we have suggested to put
investment in MCB Dynamic Cash Fund due to certain findings or reasons
which are mentioned at the end of evaluation sheet of funds.
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BBA 7th (Finance) | REVOLUTIONERS
Topic: Comparison of Two Mutual Funds

Basic Information
MCB ABL
Fund Type Open ended Open ended
Category income fund income fund
Net Asset 6087million 6764million
NAV 102.06 10.1
Benchmark 1month KIBOR 1month KIBOR
Front end load 1.5 Nil
Risk profits low low
Fund stability rating A+(f) A+(f)

Technical Information
MCB ABL
Leverage Nil Nil
Weight average 2.2 Years 38 Days
Time to maturity of Net Assets ____ ____

Asset Allocation
MCB ABL
Oct.10 Sep.1 Sep.
0 Oct.10 10
Cash 1.30% 3.30% 9.27% 5.62
%
Term deposit with bank 0.00% 0.00% 45.71% 31.0
5%
TFC 35% 37.50% ----
----
Government Security 1.60% 1.60% ----
----
T-Bills 55.20% 49% 38.81% 43.49%
Other assets 1.60% 3.50% 0.33% 1.64%

Credit Quality of Portfolio (%of Asset)


ABL
MCB
Governtment Securities 62.10% 43.49%
AA+ 0.20% 0.08% 3
BBA 7th (Finance) | REVOLUTIONERS
AA 12.40% 29.90%
A+ 5.70% ----
A 3.30% ----

Fund Return
MCB Benchm ABL Benchm
ark ark

Year to Date (YTD) 11.50% 12.40% 10.78 12.40%


%
Trailing 12 Months ---- ---- 10.84 12.49%
%
Month to Date(MTD) 2.0% 12.50% 11.13 12.50%
%
Since Inception 10.20% 11.50% ---- ----

Findings / Observations:
We have found certain observations on the basis of above mentioned
comparison.

 Annual return of MCB is 11.50% while ABL is providing 10.78% while


last month return of MCB is 2.0 % and ABL is 11.13%. It is clearly shown
that MCB is giving greater return than ABL .Here monthly return of MCB is
less than ABL due to change in price anomalies by MUFAP but if we see
the returns of previous months then MCB DCF is leading fund.
 It is evident that fund return of MCB is 72 bps higher is than ABL.

 Return from MCB DCF is closer to the benchmark (1 Month KIBOR) as


compare to ABL-IF.
 MCB fund is more secured than ABL fund because its major investment is
in T-bills or Government backed securities.
 Management Expense Ratio of both funds are 1.5% annually while MCB is
charging 1.5% Front-end load and ABL have no such type of load. Here, it
is notable thing that MCB has no back-end load which facilitates the
investor when he/she want to quit that pool of investments.

Conclusion:
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BBA 7th (Finance) | REVOLUTIONERS
It is assessed that MCB Dynamic Cash Fund is overall a good fund to
invest.

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BBA 7th (Finance) | REVOLUTIONERS