MUTUAL FUNDS

Mutual Fund:
Is a company
Has a manager (investment advisor)
Pools the capital of many individual
investors
Invests it in set portfolio
Stock, bonds and other securities.

Involves costs including shareholder

transaction costs, investment advisory
fees, and marketing and distribution
expenses.

PROSPECTUS
Is the fund's selling document
Contains valuable information
objectives or goals(long-term growth, high
current income, or stability of principal),
principal strategies for achieving those goals,
principal risks of investing in the fund,
fees and expenses,
past performance.

The prospectus also identifies the fund's

managers and advisers and describes how
to purchase and redeem fund shares.

ADVANTAGES

Diversification
Professional Management
Liquidity
Economies of Scale
Divisibility
Variety

DISADVANTAGES

No guarantees
Diversification penalty
Management Turnover
Costs despite losses
Tax Impact: unless investing through
tax-deffered retirement or education
account
Inefficiency of cash revenues

 http://sites.csn.edu/bgutschick/fin_1
3/0_chapter_13.html
http://mutualfunds.about.com/od/mut
ualfundbasics/a/Benefits-Of-MutualFunds.htm

HOW FUNDS EARN

MONEY FOR YOU

Dividend Payments
Capital Gains Distribution
Increased NAV
http://www.sec.gov/investor/pubs/sec-g
uide-to-mutual-funds.pdf

TYPES OF MUTUAL FUND

Open-Ended ~ Equity
Closed-Ended ~ Debt

 Open-Ended:The fund does not have a

fixed pool of money. At the end the day
new units are issued to the investors, while
some are redeemed back.
Close-Ended: These types of fund have a
fixed pool of money which was collected
during the initial public offer. An investor
wishing to buy or sell units has to go to the
secondary market.

Open-ended or closed-end funds

can be of several types:

Stock Funds
Income and Money Market Funds
Hybrid Funds
Pension Funds
Islamic Funds
Specialty Funds

UNDERSTANDING
PAKISTANS
MUTUAL
FUND
Trust, under the Trust Act of 1882.
MARKET
Securities and Exchange
Commission of Pakistan (SECP)
Asset Management Company (AMC)

Mutual Fund Companies

ABAMCO LIMITED
AKD INVESTMENT MANAGEMENT LTD.
AL FALAH GHP INVESTMENT MANAGEMENT
AL-MEEZAN INVESTMENT MANAGEMENT LIMITED
AMZ ASSET MANAGEMENT LTD.
ARIF HABIB INVESTMENT MANAGEMENT LTD.
ASIAN CAPITAL MANAGEMENT (PVT.) LTD
ASKARI ASSET MANAGEMENT LTD.
ATLAS ASSET MANAGEMENT LTD.
BMA ASSET MANAGEMENT LTD.
CROSBY ASSET MANAGEMENT LTD.
DAWOOD CAPITAL MANAGEMENT LTD.
FAYSAL ASSET MANAGEMENT LIMITED
FIRST CAPITAL INVESTMENTS LTD.
HABIB ASSETS MANAGEMENT LTD.
HBL ASSET MANAGEMENT LTD
KASB FUND LIMITED
NATIONAL ASSET MANAGEMENT COMPANY LIMITED
NATIONAL FULLERTON ASSET MANAGEMENT LIMITED - NAFA
NATIONAL IINVESTMENT TRUST LTD.
NBP CAPITAL LIMITED
NOMAN ABID INVESTMENT MANAGEMENT LIMITED
PICIC ASSET MANAGEMENT COMPANY LTD.
PRUDENTIAL FUND MANAGEMENT LTD
SAFEWAY MANAGEMENT LTD.
UBL FUND MANAGERS LTD.
WE INVESTMENT MANAGEMENT LIMITED

Fails/Declines:

Immature Stage
Unawareness
Utmost faith and trust
The main reason was the term
finance certificates (TFCs) price
movement, which led the category to
be ignored by the investors during
the year, said Mazhar Sabir at
InvestCap Research.

MUTUAL FUND MARKET IN

PAKISTAN?
http://www.pakonomy.com/understand
ing-pakistani-mutual-funds-rules-t
axes-and-more/#.UmzRxPlWbvY
http://www.pide.org.pk/pdr/index.php/
pdr/article/viewFile/2102/2075
And names of the companies where
mutual funds work?
Why have they failed in Pakistan?
http://www.maverickpakistanis.com/20
10/07/mutual-funds-industry-in-pakis

US
History
http://www.investopedia.com/ask/answ
ers/09/first-mutual-fund.asp
http://www.investopedia.com/universi
ty/quality-mutual-fund/chp1-introduc
tion/mf-industry.asp

Indian

Despite being available in the market for over two decades

now with assets under management equaling Rs 7,81,71,152
Lakhs (as of 28 February 2010),[1] less than 10% of Indian
households have invested in mutual funds. A recent report on
Mutual Fund Investments in India published by research and
analytics firm, Boston Analytics, suggests investors are
holding back from putting their money into mutual funds due
to their perceived high risk and a lack of information on how
mutual funds work.[2] This report is based on a survey of
approximately 10,000 respondents in 15 Indian cities and
towns as of March 2010. There are 46 Mutual Funds as of June
2013.[3] The primary reason for not investing appears to be
correlated with city size. Among respondents with a high
savings rate, close to 40% of those who live in metros and Tier
I cities considered such investments to be very risky, whereas
33% of those in Tier II cities said they did not know how or
where to invest in such assets.

 The U.S. mutual fund marketwith $13 trillion in

assets under management at year-end 2012
remained the largest in the world, accounting for
49 percent of the $26.8 trillion in mutual fund
assets worldwide

Reasons for rise

U.S. households rely on equity, bond,
and hybrid mutual funds to meet
long-term personal financial
objectives such as preparing for
retirement. U.S. households as well
as businesses and other institutional
investors use money market funds as
cash management tools because
they provide a high degree of
liquidity and competitive short-term

MUTUAL FUND MARKET IN

U.S?
If we come across at mutual fund
market of a developed country, we
can see that their investment in the
mutual fund industry is higher as
compared to their bank deposit base
Read more:
http://www.ukessays.com/dissertatio
ns/marketing/investment-in-mutual-f
unds-in-pakistan.php#ixzz2j8amdWIC

 http://www.ukessays.com/dissertation
s/marketing/investment-in-mutual-fun
ds-in-pakistan.php
SEE:
http://investgrow.wordpress.com/2012
/06/10/mutual-funds-in-pakistan/
http://www.investopedia.com/ask/answ
ers/09/first-mutual-fund.asp
http://www.investopedia.com/universi
ty/quality-mutual-fund/chp1-introduc
tion/mf-industry.asp
http://www.icifactbook.org/fb_ch2.ht