What is a mutual fund?

1) A mutual fund is a pool of money from

numerous investors who wish to save
or make money just like you. Investing
in a mutual fund can be a lot easier
than buying and selling individual
stocks and bonds on your own. Investors can sell their shares when
they want

2) An investment program funded by shareholders that trades in

diversified holdings and is professionally managed.

HISTORY:

1962- Government of Pakistan established NITL which launched first open

end equity fund in Pakistan.
1966- Government of Pakistan established ICP which launched series of
close end funds.
Only in mid 90s, the sprouts of mutual funds is witnessed.
1994-95 more funds launched in private sector.
2006 Total number of AMCs are 30 managing 56 mutual funds.
 WORLWIDE OVERVIEW:

First modern day mutual fund was opened in North America in 1924.

The great depression of1930s in USA has stalled the growth of mutual funds
sector, like many other economic activities.
At the end of 2006 total mutual fund asset all over the world were $19.413
trillion

Mutual funds association of Pakistan

MFAP is the trade body for Pakistan multi billion rupees asset management industry. The money
our members manage is in a wide variety of investment vehicles including stocks, bonds,money
market instruments , government securities and bank deposits. Our role is to ensure transparency,
high ethical conduct and growth of mutual fund industry.
Mutual Funds Association of Pakistan (MUFAP) is the trade body for Pakistans multi billion
rupees asset management industry. The money our members manage is in a wide variety of
investment vehicles including stocks, bonds, money market instruments, government securities
and bank deposits. Our role is to ensure transparency, high ethical conduct and growth of the
mutual fund industry. MUFAP was formed in 1996 by Mr. Zaigham Mahmood Rizvi, ex-
Chairman and founder member, and was formally incorporated in 2001 as a public company
limited by guarantee not having share capital. MUFAP is licensed by Ministry of Commerce
(Directorate General of Trade Organizations). After the establishment of MUFAP in 1996,
private and foreign firms were allowed to float open-ended funds for the general public. This
time also saw the stock markets performance scale new heights as a result of positive
government policies and incentives, registering a growth of more than 15 times in the net assets
of the mutual funds between 2000-2008. Mutual Funds were initially overseen by the Corporate
Law Authority (CLA) under its Securities Wing. The CLA, then a division of the Ministry of
Finance, was gradually transformed and made independent as the Securities and Exchange
Commission of Pakistan (SECP) as part of the Capital Market Development Program (CMDP)
initiative of the Asian Development Bank undertaken for Pakistan.
ROLE OF MUFAP:

In the following broad categories which fall in the role of MUFAP, MUFAP has done or is
doing the following activities as listed below. Many of the voluntary initiatives taken by
MUFAP became the industry norm and went on to being included by the SECP in the
regulations and its directives as the mandatory standard/requirement.

Policy Issues & Shaping Regulation

Laws, Rules, Regulations

Taxation related issues/reforms

Accounting Related issues

 Market Practices developing and implementing Industry Codes and Guidelines