INVESTMENT POLICY STATEMENT

MR X

Profile of the investor:

Mr. X, age under 50, individual investor

Portfolio: individual, taxable

City: Karachi

Current assets: 500,000rs

Risk Objective:

Mr. X is a middle age banker with a stable income, high saving and low spending needs. Mr. X has also
taken a short term loan but he is paying it regularly and the loan will be off set within next 2 months and
has an above average financial strength.

Furthermore he has no kids and has his own house and is expecting to be promoted next month.

Risk tolerance by ability: Above Average

Mr. X is not at all comfortable in investing in stock or stock mutual funds, further more thinks risk as an
opportunity and is willing to take risk after complete adequate research.

Risk tolerance by willingness: Average

Overall risk tolerance: Average (max $100 loss)

Return Objective:

Total return (income + growth): 13% after inflation

Post tax Return goal: 9%

Time horizon:

5+ years but can be changed by the investor’s change in circumstances (income or inflation).

Liquidity needs:

No planned expenses or any cash commitments, as liquidity needs are lower relative to the portfolio
assets and they must be managed with higher risk and focus less on income generation assets.
Tax and regulatory concerns:

Tax and regulatory concerns are not so important because of Mr. X’s fixed income and the changes/ no
changes in tax treatment are uncertain we will include recommendation for legal counsel or professional
tax advice.

Unique circumstances:

Mr. X preferably avoids stock market and would like to invest according to shariah compliance.