How to Invest in Mutual Funds in Pakistan - Everything You Need to Know

How to Invest in Mutual Funds in Pakistan

How to invest in Mutual Funds in Pakistan : Mutual funds are collective investment schemes where money from different investors is pooled for the purpose of investing in equity, debt and money market securities, stocks and bonds. After earn profit, it is given back to the investor as capital appreciation. Like the stock exchange, each shareholder will face the loss or gain in the fund.

How to Invest in Mutual Funds in Pakistan...Mutual Funds Association of Pakistan is the licensed body by Pakistan government for the mutual fund industry. Asset Management Companies (AMCs) and Investment Advisory ( IAs ) licensed by SECP to launch Mutual Funds and perform investment.In this post, we’ll describe the very important question that you want to ask: “How to invest in Mutual Funds in Pakistan?” …

Categories of Mutual Funds

There are several categories of mutual funds. You must be well-versed with these categories & must know the difference between these categories, understand their prose & cones in order to Invest in Mutual Funds in Pakistan so you get the best ROI.

  • Close-ended mutual funds

Close-ended mutual funds scheme has fixed maturities and you can not withdraw your investment before maturity.

  • Open-ended mutual funds

In open Ended mutual funds scheme at any stage you can withdraw your money within a few days if you want.

Procedure to Invest in Mutual funds in Pakistan

Systematic Investment Plans or SIPs is very common procedure among the investors in order to invest in Mutual Funds in Pakistan but most people have not a clear idea about the SIPs and they do not know how to start a SIP. SIP provides you an online platform on daily, monthly and quarterly bases. Most investment advisors advise the people to invest in equity schemes by SIPs as It will surely increase your cost. Another advantage of investing through SIP is it compels the investors irrespective of the condition of the market. By investing by SIP you will follow three steps

1.Documents Required

In order to start procedure to invest in Mutual Funds in Pakistan, you must have these documents with you.

  • Copy of CNIC

  • Application / Account Opening Form

  • Purchase of Units Form

  • Zakat Affidavit (Optional)

  • KYC Form (Know your customer)

  • FATCA Form §(Foreign Account Tax Compliance Act)

  • Cheque in favor of Trustee of the Fund

  • Your address proof (Bank statement, Driving Licence, Utility Bill)

  • A Passport Size Photograph

2.Become a KYC compliant

It is necessary you should comply with the Know Your Customer (KYC) requirements in order to invest in mutual funds in Pakistan. For this, you will provide some basic information Name, Mobile Number, Date of Birth, Address. Now you become KYC Compliant online on the eKYC channel.Even many fund houses provide this facility itself. You will visit their website and simply start the process. On the website of eKYC, you fill the information and upload a soft copy of your PAN and address proof. After applying online a video call is scheduled to confirm your physical appearance.

3. Start the SIP online

When you become KYC Compliant, you can start the SIP online. Visit the website of fund house in which you want to invest. Click on the register now button or New Investor button and fill the basic information. A unique username and password would choose for online transacting. Your bank detail is needed here for monthly debit. Now you put the username and password and select your desire fund scheme for investing. You can choose any date for monthly SIPs. Than SIP will start after 40 days.

Mutual Funds Association in Pakistan

There are different mutual funds schemes in Pakistan for investing where you can invest your wealth and earn the profit in future.

Capital Protected Scheme

  • UBL Capital Protected Fund III

  • JS Capital Protected Fund V

Balanced Schemes

  • HBL Multi-Asset Fund

  • First Dawood Mutual Fund

  • Faysal Balanced Growth Fund

  • Unit Trust of Pakistan

  • Pakistan Capital Market Fund

  • Primus Strategic Multi-Asset Fund

Money Market Schemes

  • UBL Money Market Fund

  • JS Cash Fund

  • Pakistan cash management Fund

  • HBL Money Market Fund

  • BMA Empress Cash Fund

  • ABL cash Fund

  • First Habib Cash Fund

  • Askari Sovereign Cash Fund

  • NAFA Government Securities Liquid Fund

  • Lakson Money Market Fund

Income Scheme

  • PIML Income Fund

  • NIT-Income Fund

  • Dawood Income Fund

  • MCB DCF Income Fund

  • ABL Government Securities Fund

  • NAFA Income Fund

  • Faysal Financial Sector Opportunity Fund

Index Tracker Scheme

  • AKD Index Tracker Fund

Asset Allocation Fund

  • UBL Asset Allocation Fund

  • Lakson Tactical Fund

  • First Habib Asset Allocation Fund

  • Alfalah GHP Value fund

  • Askari Asset Allocation Fund

Aggressive Fixed Income Scheme

  • Pakistan Income Enhancement Fund

  • Askari High Yield Scheme

  • BMA Chundrigar Road Savings Fund

  • Faysal Income & Growth Fund

  • UBL Growth & Income Fund

  • Alfalah GHP Income Multiplier Fund

Fund of Fund Scheme

  • HBL Financial Planning Fund (Conservative Allocation Plan)

  • Alfalah GHP Prosperity Planning Fund (Alfalah GHP Conservative Allocation Plan)

  • ABL Financial Planning Fund (Conservative Plan)

  • JS Fund of Funds

  • Alfalah GHP Prosperity Planning Fund

Equity Schemes

  • First Capital Mutual Fund

  • Alfalah GHP Stock Fund

  • HBL Equity Fund

  • National Investment Unit Trust

  • MCB Pakistan Stock Market Fund

  • JS Large Cap Fund

  • UBL Stock Advantage Fund

  • PIML Value Equity Fund

These mutual funds in Pakistan are among top 100 mutual funds of the world.

  • Golden Arrow Selected Stocks Fund

  • JS Growth Fund

  • Pakistan Islamic Pension Fund- Equity sub-fund

  • Atlas Stock Market Fund

  • Pakistan Pension Fund-Equity sub-fund

  • NAFA Stock Fund

  • Atlas Pension Islamic Fund-Equity Sub Fund

  • ABL Stock Fund

  • AKD Opportunity Fund

  • JS Pension Savings Fund-Equity Sub Fund

  • Atlas Pension Fund-Equity sub Fund

  • JS Islamic Fund

  • Asian Stocks Fund Limited

  • Safeway Mutual Fund Limited

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