MUTUAL INVESTMENT FUND

Proposal Document

FEBRUARY 22, 2018

Revision 1.0
 MUTUAL INVESTMENT FUND

Contents
1. Introduction .......................................................................................................................................... 2
2. Objective ............................................................................................................................................... 2
3. Past Data (Portfolio).............................................................................................................................. 2
3.1. Individual Investment Details ........................................................................................................... 2
3.2. Cumulative Results............................................................................................................................ 4
4. Proposed Fund ...................................................................................................................................... 4
4.1. Fund Collection ................................................................................................................................. 4
4.2. Fund Investment ............................................................................................................................... 4
4.3. Fund Income ..................................................................................................................................... 5
4.4. Fund Transfer .................................................................................................................................... 5
4.5. Discontinuation ................................................................................................................................. 5
4.6. Return Estimates ............................................................................................................................... 5
4.7. Comparison ....................................................................................................................................... 7

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1. Introduction
This document describes basis of a Mutual Investment Fund that will be operated closely only for
selective members.

2. Objective
The Fund will be created to meet following objective:

 Shariah Compliant Shareholding on investment returns

 Mutual Growth Fund
 Maximize monthly Income
 Capital increment as per market rate of Assets and Investments
 Long Term Retirement Plan
 Short Term Investment Plan

3. Past Data (Portfolio)

3.1. Investment Returns

Our past experience has produced following returns:
 Average Annual Rental Income in 2nd Year = 4.0%
 Average Annual Rental Income in 5th Year = 7.25%
 Average Monthly Rental Increment per Year = 8%
 Average Investment Value Increment in 3rd Year = 35%
 Average Annual Increment of Investment Value = 20%

Below tables provide the actual data of Investments in Real Estate and returns respectively
rounded to lowest thousand. The income mentioned is net value after deducting all expenses.

Property A - Type = Semi Commercial - Size = 7.75 Marla

Face Annual
Invested Total Value Increment Income Income Income
Year Status (Millions) (Millions) (Millions) %age Type Value %age
2013 Purchase 7.2 7.2 7.5 4.17
2014 Construction 3.35 10.55 15.0 51.66
2014 Rented 10.55 15.0 51.66 Monthly 50,000 5.69
2015 Rented 10.55 15.0 42.18 Monthly 54,000 6.14
2016 Rented 10.55 16.0 51.66 Monthly 57,000 6.48
2017 Rented 10.55 18.0 70.62 Monthly 59,000 6.71
2018 Rented 10.55 20.0 89.57 Monthly 60,000 6.82

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Property B - Type = Semi Commercial - Size = 7.75 Marla

Face Annual
Invested Total Value Increment Income Income Income
Year Status (Millions) (Millions) (Millions) %age Type Value %age
2013 Purchase 7.3 7.3 7.5 2.74
2013 Rented 7.3 7.5 2.74 Monthly 27,000 4.44
2014 Rented 7.3 10.0 36.99 Monthly 29,000 4.77
2015 Rented 7.3 11.0 50.68 Monthly 31,000 5.10
2016 Construction 5.5 12.8 18.5 44.53
2016 Rented 12.8 18.5 44.53 Monthly 82,000 7.69
2017 Rented 12.8 22.5 75.78 Monthly 90,000 8.44
2018 Rented 12.8 25.0 95.31 Monthly 95,000 8.91

Property C - Type = Residential - Size = 11.5 Marla

Face Annual
Invested Total Value Increment Income Income Income
Year Status (Millions) (Millions) (Millions) %age Type Value %age
2015 Purchase 15.6 15.6 16 2.56
2016 Construction 6 21.6 22.5 4.17 Monthly
2017 Partial Sold -5.1 16.5 18.5 12.12 Monthly 29,000 2.11
2017 Rented 16.5 18.5 12.12 Monthly 74,000 5.38
2018 Rented 16.5 19 15.15 Monthly 76,000 5.53

Property D - Type = Semi Commercial - Size = 7.6 Marla

Face Income Annual
Invested Total Value Increment Income Value Income
Year Status (Millions) (Millions) (Millions) %age Type (Millions) %age
2016 Purchase 17.0 17.0 18.0 5.88
2016 Construction 4.2 21.2 30.0 41.51
2017 Sold 21.2 35.0 65.09 One Time 35.0 65.09

Property E - Type = Commercial - Size = 20 Marla

Face Return Annual
Invested Total Value Increment Return Value Return
Year Status (Millions) (Millions) (Millions) %age Type (Millions) %age
2017 Purchase 46.5 46.5 47.5 2.15
2018 Rented 46.5 50.0 7.53 Monthly 133,000 3.43

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3.2. Cumulative Results

The cumulative results are as follows:

Total
Total Value Annual
Calculation Investment Asset Monthly Monthly
Year Investment Increase Income
Base (Millions) Value Income Income
(Millions) %age %age
(Millions)
Actual 2013 15.0 15.0 15.0 0.00 8,000 0.67 8,000
Actual 2014 3.35 18.35 26.0 41.69 50,000 3.27 50,000
Actual 2015 0.2 18.55 28.5 53.64 87,000 5.66 87,000
Actual 2016 27.5 46.05 75.0 62.87 156,000 4.07 156,000
Actual 2017 7.5 53.55 102.0 90.48 212,000 4.76 212,000
Forecast 2018 0 53.55 108.5 102.61 232,000 5.21 350,000
Forecast 2019 0 53.55 114.0 112.75 243,000 5.46 495,000
Forecast 2020 0 53.55 120.0 123.38 256,00 5.75 545,000
Forecast 2021 0 53.55 125.0 134.55 269,00 6.04 599,000
Forecast 2022 0 53.55 130.0 146.28 282,000 6.34 659,000

4. Proposed Fund

4.1. Fund Collection

The fund will be generated from selective members in the form of installments either Monthly,
Quarterly or Semi-Annual. The fund minimum start amount is distributed in 10 equal units. Members
can obtain more than one units and will sponsor this fund only for 1 year.

Unit Total Value = 2.4 Millions

12 Monthly Installment = 2 Lacs OR;

4 Quarterly Installment = 6 Lacs OR;

2 Semi-Annual Installment = 1.2 Millions

4.2. Fund Investment

The fund will be invested in real-estate Rental based property utilizing past experience to maximize
both monthly income as well as fund value.

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4.3. Fund Income

The actual rental income from the investments will be distributed between members based on units
as per following allocation.

 Re-invested and added to the Member’s Unit Value = 40%

 Monthly Return to the member = 40%
 Fund Management Fee = 20%
 Return Start Date = End of 1st Month of 7th Quarter of membership start date (19th Month)

4.4. Fund Transfer

The fund can be transferred to any other person/s by the member at any time. Following terms will
be applied at the time of transfer request:

 All new members have to approved by the Fund Managers before transfer in order to keep
it a closed fund.
 Partial transfer is only allowed after completion of 2nd Year of membership.
 Transfer fee may be charged as per policy at the time of transfer and approved by Fund
Managers.

4.5. Discontinuation
The face value of the investments will be updated at the end of every quarter. The membership can
be discontinued at any time. The following terms will apply at the time of discontinuation:

 The monthly income to the member will be discontinued from the same month after
receiving discontinuation request from member.
 The last face value will be used to calculate the return value to member.
 The amount will be returned to the member within 3 months from the discontinuation date.
 Partial Discontinuation is allowed only after completion of 2nd Year of membership.
 A discontinuation fee will be charged @ 20% of return value.

4.6. Return Estimates

The below table indicate the Face Value and Monthly income after deduction of Management Fee.
These estimates are calculated on conservative basis from past data and can be assumed as minimum
expected returns.

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Monthly 40%
Semi-Annual Investment per Face Value Value
Return per Annual
Tenure Unit (Millions) (Millions) Increment
Unit Return
1H1Y 1.2 1.2 0.00 0
2H1Y 1.2 2.4 0.00 0 0.00
1H2Y 0 3.0 26.67 0
2H2Y 0 3.25 36.94 2,667 1.33
1H3Y 0 3.5 47.95 2,844
2H3Y 0 3.8 59.74 3,034 2.94
1H4Y 0 4.1 72.37 3,236
2H4Y 0 4.4 85.88 3,452 3.34
1H5Y 0 4.8 100.35 3,682
2H5Y 0 5.1 115.83 3,928 3.80
1H6Y 0 5.5 132.40 4,190
2H6Y 0 6.0 150.13 4,469 4.33
1H7Y 0 6.4 169.09 4,767
2H7Y 0 7.0 189.38 5,085 4.93
1H8Y 0 7.4 211.07 5,424
2H8Y 0 8.0 234.28 5,785 5.60
1H9Y 0 8.6 259.09 6,171
2H9Y 0 9.25 285.62 6,582 6.38
1H10Y 0 9.9 313.98 7,021
2H10Y 0 10.5 344.30 7,489 7.26

The below estimates are on realistic returns based on past data.

Monthly 40%
Semi-Annual Investment per Face Value Value
Return per Annual
Tenure Unit (Millions) (Millions) Increment
Unit Return
1H1Y 1.2 1.2 0.00 0
2H1Y 1.2 2.4 0.00 0 0.00
1H2Y 0 3.6 50.67 0
2H2Y 0 3.8 61.81 4,267 2.13
1H3Y 0 4.1 73.73 2,951
2H3Y 0 4.4 86.46 3,148 3.05
1H4Y 0 4.8 100.08 3,358
2H4Y 0 5.1 114.63 3,582 3.47
1H5Y 0 5.5 130.19 3,820
2H5Y 0 5.9 146.81 4,075 3.95
1H6Y 0 6.3 164.57 4,347
2H6Y 0 6.8 183.55 4,636 4.49
1H7Y 0 7.25 203.82 4,946 5.11

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2H7Y 0 7.8 225.49 5,275

1H8Y 0 8.3 248.63 5,627
2H8Y 0 8.9 273.35 6,002 5.81
1H9Y 0 9.5 299.76 6,402
2H9Y 0 10.25 327.96 6,829 6.62
1H10Y 0 10.9 358.08 7,284
2H10Y 0 11.75 390.26 7,770 7.53

4.7. Comparison
The below table provides a quick comparison of this fund with other Investment options.

Comparison Mutual Fixed Bank Saving / Real Estate (On Properties on

Investment Deposits / Insurance Ground) Installments
Fund Bonds Plans
Investment 2 Year 3 Months to 20 1-20 Years 3 Years 3 Years
Tenure for Years
Profit
Installments Yes No Yes No Yes
Installments 1 Year 0 1-20 Years 0 3-5 Years
Tenure
Annual Income 3-4% from 3rd 4-5% 0 3-4% only for 0
% Year Rental Property
100 % Value 3-4 Years N/A 8-10 Years 5-6 Years 6-8 Years
Increment
Tenure

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