Mutual Fund

A mutual fund is a type of financial vehicle made up of a pool of money collected

from many investors to invest in securities like stocks, bonds, money market
instruments, and other assets. Mutual funds are operated by professional money
managers, who allocate the fund's assets and attempt to produce capital gains or
income for the fund's investors. A mutual fund's portfolio is structured and
maintained to match the investment objectives stated in its prospectus.

 A mutual fund is a type of investment vehicle consisting of a portfolio of

stocks, bonds, or other securities.

 Mutual funds give small or individual investors access to diversified,

professionally managed portfolios at a low price.

 Mutual funds are divided into several kinds of categories, representing the
kinds of securities they invest in, their investment objectives, and the type of
returns they seek.

 Mutual funds charge annual fees (called expense ratios) and, in some cases,
commissions, which can affect their overall returns.

 The overwhelming majority of money in employer-sponsored retirement

plans goes into mutual funds.

TYPES OF MUTUAL FUNDS

There are two types of Mutual Funds:

1. Open-Ended Mutual Fund

2. Closed-Ended Mutual Fund

Open-Ended Mutual Funds

 These funds control the mutual funds marketplace in terms of volume,

continually creating new units or redeeming issued units on demand.

 They don’t have a limit as to how many shares can be issued, as more
investor’s purchase the funds, more shares are issued also referred to as Unit
Trusts.

 The Unit holders purchase the units of the fund or may redeem them on a
continuous basis at the prevalent Net Asset Value (NAV). On the other
hand, an open-end fund cannot be watched the way the stocks are, because
the trading is not done in open market.

 These units can be purchased and redeemed through Management Company

which announces offer and redemption prices daily.

Closed-Ended Mutual Funds

 A closed-end fund is generally referred to as “Closed-Ended Company”.

 These funds sell a fixed number of shares and are launched through an IPO
(Initial Public Offering).

 Once issued, they can be bought and sold at market rates in the secondary
market (Stock Exchange).

 The market rate is announced daily by the stock exchange. Once close-end
fund starts trading, their prices are then marked by supply and demand and
not by NAV.
Al Meezan Mutual Fund
Al Meezan Mutual Fund is an open-end Shariah Compliant equity scheme. The
investment strategy of the scheme is to identify and invest in businesses which
have foreseeable growth prospects. Al Meezan Mutual Fund (previously a closed
end equity fund ) was converted into an open- end equity fund with effect from
August 5, 2011.

Investment Objective & Philosophy

The objective of the fund is to optimize total investment returns, both capital gains
and dividend income through prudent investment management.

The fund follows a top-down approach, where the investment team will first
analyze the broader economic outlook, identify the sectors to invest in, and finally
pick stocks. The fund’s investments are well diversified across companies and
sectors in line with regulatory requirements and company policies.

Key Benefits

 Impressive long-term performance track record of over 26 years both in

absolute terms and relative to its benchmark.

 The fund generated a total return of 4444.93% since inception (July 13, 1995
till December 31,2021)

 Average Annualized return since inception (July 13, 1995 till December
31,2021) is 15.50% in PKR terms

 Managed by the only Shariah compliant Asset Management Company in

Pakistan with a solid track record of over 26 years, and under the
 supervision of the Shariah Supervisory Board of Meezan Bank headed by
Justice (Retd.) Mufti Muhammad Taqi Usmani.

Product Suitable For Investors Who Are Seeking:

 Long term wealth creation solution

 A diversified equity fund that aims for capital appreciation by investing in

Shariah compliant equity securities

 High risk and return potential

 Investors are encouraged to consult their financial advisers prior to investing

in the product.

Investment Growth

If you invested Rs. 100,000 in AMMF at the time of launch in July 1995, the value
of your investment has increased by 4444.93% to reach Rs. 4,544,930 as on
December 31, 2021.

Note: High Risk means Risk of Principal Erosion is high.

 Key Features

Scheme Name Al Meezan Mutual Fund

Scheme Type Open-end Islamic Equity Fund

Date of Inception July 13, 1995

Fund Size – December 31,2021 Rs. 5.05 billion

The Fund seeks to maximize total investor returns by

Objective of the scheme investing in Shariah Compliant equities focusing on both
capital gains and dividend income.

Benchmark KMI-30 Index

Minimum Investment Amount Rs.5000 (and Rs. 1,000 thereafter)

Lock-in Period None

Management Fee 2%

Entry Load 2%

Exit Load Contingent Load

Selling and Marketing

0.4%
Expense

Tax credit (as per prevailing Tax Rules)* on maximum 20%

Tax Benefits of your taxable income or Rs. 2,000,000, whichever is lower.

*Under Section 62 of the Income Tax Ordinance 2001

Systematic Investment Plan

Yes
Facility