Professional Documents
Culture Documents
Mutual Funds
Mutual Funds
GROUP MEMBERS
Closed-Ended Open-Ended
Mutual Funds Mutual Funds
OPEN ENDED
funds have a fixed number of shares like a public company and are
floated through an IPO.
Once issued, they can be bought and sold at the market rates in
secondary market (Stock Exchange).
Habib
National Bank of
MCB Bank Ltd. Habib Bank Ltd. Metropolitan Askari Bank Ltd.
Pakistan
Bank Ltd.
Fee
management Load
fees Charges
CATEGORIES OF MUTUAL FUND
Shariah Capital
Index Tracker Money Market
Compliant Protected
Scheme Scheme
(Islamic) Scheme Scheme
NIUT GBF PF
Islamic Equity
IF IPF
Funds
State
Enterprise GTF
Fund
IIF
WHY INVESTMENT IN MUTUAL FUNDS
Mutual Funds
Investing simple
Accessible
Affordable
Tax Advantages
ADVANTAGES OF MUTUAL FUND
Professional
Accessibility Liquidity Diversification
Management
Investors do not
portfolio reduces Carefully examine
have to find a
the investors’ risk & take decision
buyer
The individual investor is required to provide the following at the designated sales points of
the Asset Management Company
• Copy of CNIC
• Application / Account opening Form
• Purchase of Units Form
HOW DO MUTUAL FUNDS DETERMINE THEIR UNIT
PRICE?
• A fund's Net Asset Value (NAV) represents the price per unit. The NAV is equal to the
market worth of assets held in the portfolio of a Fund, minus liabilities, divided by the
number of units outstanding.
NAV = Current Market Value of all the Assets – Liabilities
Total Number of Units Outstanding
CALCULATION OF NIUT FUNDS
• Suppose you have 100,000 Rupees and willing to invest in mutual funds the offer rate is
RS 79.75 and the Repurchase rate is Rs 77.42
• Then
• 100000/77.42=1292 units
• In future if Rs 80 per unit
• 1292*80=103332
• 103332-100000=3332
CALCULATION OF NIUT FUNDS
• If the investor not willing to then units are issued against dividend
• Suppose unit price are reached at Rs 90 then
• Price – dividend
• 90-5=85
• Dividend profit / Unit price
• 5600/85=66 units issued
• 1292+66=1358