ASSIGNMENT NO.

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INVESTMENT PORTFOLIO MANAGEMENT

TOPIC: Mutual funds

Submitted to: Ms. Shaista
Submitted by: Iqra Khalid
Roll No. 91651022
Class: B.com (hons)
Date: 4th oct, 2019
Session: 2016-2020

Lahore college for women university Lahore

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 Mutual fund
Definition:
A mutual fund is a type of financial vehicle made up of a pool of money collected
from many investors to invest in securities such as stocks, bonds, money market instruments, and
other assets.

OR

A mutual fund is an investment security that enables investors to pool their money together into
one professionally managed investment. Mutual funds can invest in stocks, bonds, cash or a
combination of those assets. In simpler terms, mutual funds are like baskets.

TYPES OF MUTUAL FUND

These are the types of mutual funds.

 Money market mutual funds

 Equity (stock) funds
 Bond funds
 Hybrid or balance funds

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 MONEY MARKET

DEFINITION:

A money market fund also called a money market mutual fund is an

open-ended mutual fund that invests in short-term debt securities such as US Treasury bills
and commercial paper. Money market funds are widely though not necessarily accurately
regarded as being as safe as bank deposits yet providing a higher yield. A money market is a
mechanism that’s deal with the lending and browning of short term funds less than one year.
Money market funds invest in high liquidity, low risk instruments with maturity of 90 days.

High and low money market rank of return

Fund name Rating YTD NAV Day 1 Day 15 Day 30 Day 30 Day 90

First Habib AA(f) 12.62 100.2671 13.99 13.22 13.07 12.64

14.82
Pakistan Cash AA+(f) 10.86 11.64 11.35 11.10 11.38 10.82
51.7727
Management
Fund

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 Capital protected absolute return

Definition:

Capital funding is the money that lenders and equity holders provide to a business for
daily and long-term needs. A company's capital funding consists of both debt (bonds) and equity
(stock). The business uses this money for operating capital. Capital funding is the money that
lenders and equity holders provide to a business for daily and long-term needs.

Fund name Rating YTD NAV Day 1 Day 15 Day30 Day90

Alfalah Capital Nil 3.01 102.9316 0.46 1.44

Preservation
0.06 2.82
ABL Special Saving Nil 0.57 10.0569 0.03 0.57 N/A N/A
Fund

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 Aggressive fixed income
Definition
The aim of aggressive income fund is to generate a high return by investing in
fixed income securities while taking exposure in medium to lower quality of assets also.. The
term aggressive growth fund refers to a portfolio of securities that attempts to maximize capital
appreciation. There is a risk-reward trade off when investing in an aggressive growth fund the
greater returns associated with these funds means the investor is willing to accept more risk too.

Fund name Rating YTD NAV Day 1 Day 15 Day 30 Day 90

Pakistan Income A+(f) 14.48 55.1544 13.37 16.24 18.15 14.65

Enhancement
Fund
Askari High Yield A(f) 104.6468 8.06 13.03 9.60 10.11
10.08
Scheme

BALANCE FUND

Definition:

A balanced fund is another option for intermediate-term investors. Balanced

funds, which are often called hybrid funds, own both stocks and bonds. They earn the balanced
moniker by keeping the balance between the two asset classes pretty steady, usually placing
about 60% of their assets in stocks and 40% in bonds. A balanced fund is a mutual fund that
generally keeps to a 50-50 mix of stock and bond investments.

Fund Name Rating YTD NAV Day 1 Day 15 Day 30 Day 90

Unit Trust of Nil 136.0000 0.87 2.47 6.23 (3.38)

(3.31)
Pakistan

First Dawood Nil (0.90) 17.1849 0.15 1.06 2.86 0.17

Mutual Fund

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 Equity fund
Definition:
An equity fund is a mutual fund that invests principally in stocks. It can be
actively or passively (index fund) managed. Equity funds are also known as stock funds. Stock
mutual funds are principally categorized according to company size, the investment style of the
holdings in the portfolio and geography.

Some equity funds are also divided into those pursuing income or capital appreciation or
both. Income funds seek stocks that will pay dividends, usually investing in equities of blue-chip
companies. Other equity funds primarily seek capital appreciation, or the objective that the
stocks in the portfolio will go up in share price.

Fund Name Rating YTD NAV Day 1 Day 15 Day 30 Day 30

HBL Investment NIL (3.51) 5.8470 2.02 13.66 25.61 (2.70)

Fund

ABL Stock Fund NIL (4.79) 11.1634 0.41 1.62 8.99 (6.31)

Assets allocation funds

Definition:

An asset allocation fund is a fund that provides investors with a diversified portfolio
of investments across various asset classes. Popular asset categories for asset allocation funds
include stocks, bonds and cash equivalents that may also be spread out geographically for
additional diversification. Asset allocation funds are mutual funds that invest in a varied class of
assets. These assets can be equity-oriented, debt-oriented.

Fund Name Rating YTD NAV Day 1 Day 15 Day 30 Day 90

Pak Oman Advantage Nil (1.82) 43.7171 0.72 1.09 3.75 (1.87)
Asset

MCB Pakistan Nil 2.59 102.1902 0.03 0.44 0.85 2.45

Frequent Payout

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 Sharia Compliant Money Market

Definition:

Sharia compliant funds are investment funds governed by the

requirements of Sharia law and the principles of the Muslim religion. Sharia compliant funds
are considered to be a type of socially responsible investing. Sharia compliant Fund” means a
joint pool wherein the investors contribute their money for the purpose of investment to earn
halal profits in strict conformity with the precepts of Sharia. The concept of Islamic Mutual
Funds has its roots in “Musharaka”, and Islamic investment vehicle.

Fund Name Rating YTD NAV Day 1 Day 15 Day 30 Day 90

NBP Islamic Money AA(f) 12.23 10.3383 13.07 12.82 12.21 12.21
Market Fund

Meezan Cash Fund AA(f) 10.87 51.9006 11.54 11.39 11.31 10.88

Sharia compliant funds of funds

Definition:

Sharia compliant funds are investment funds governed by the requirements

of Sharia law and the principles of the Muslim religion. Sharia compliant funds are considered to
be a type of socially responsible investing. They are different from conventional investment
funds because they have many requirements, such as appointment of a Sharia board and
prohibition from investing in companies that derive a majority of their income from sale of
alcohol, pork products, gambling etc.

Fund Name Rating YTD NAV DAY 1 Day 15 day 30 Day 90

Atlas Islamic Fund of Nil 492.5800 0.07 0.83 3.05 0.69
0.94
Funds
Meezan Strategic Nil 0.54 50.2279 -0.00 2.76 0.11
0.75
Allocation Fund

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