How can Alfalah Assist?
A mutual fund is a trust based structure between Trustee and Management Company that collects money from many investors by selling units, and invests funds into investment avenues on behalf of unit holders with a view to increasing the underlying value of their investment portfolio.
Mutual funds, run by licensed AMCs, operate under a trust structure. An independent trustee manages funds and investments based on AMC advice, adhering to the legal “Trust Deed” framework. This ensures regulatory compliance and protects investor interests.
Pakistan’s Securities & Exchange Commission (SECP) regulates non-banking firms like AMCs and Mutual Funds. Empowered by law, SECP safeguards investors by setting rules and monitoring compliance through regular reviews.
The Trustee holds assets on behalf of the fund in a Trust and works to safeguard the rights of investors. Trustee can be a custodian as well by taking the physical possession of all securities purchased by the mutual fund, and undertakes responsibility for its handling and safekeeping.
A highly regulated financial institution licensed by the SECP (Regulator) that structures and manages various mutual funds. The fee charged for managing funds is the Management Fee. This fee is quoted annually and is calculated as a percentage of net assets under management.
A Trust Deed, outlining fund operations and publicly available, serves as the foundation for an investment fund. Established between an asset manager and a trustee, this document dictates all fund management procedures.
Open funds continually create new units or redeem issued units on demand. The unit holders can buy the units of the fund or may redeem them on a continuous basis at the prevailing Net Asset Value (NAV) by simply contacting the AMC.
SECP categorizes Open-End CIS based on risk and asset class to help investors choose and compare funds. This system sorts them into Equity, Asset Allocation, Fund of Fund, Money Market, Income, Aggressive Income, and Fixed Return schemes.
Mutual funds offer a powerful combo: diversification, pro management, and affordability, reducing risk while potentially boosting returns. Choose from flexible, tax-advantaged schemes with clear transparency. It’s convenient, liquid, and opens doors to a variety of investment options.
Shariah Advisory ensures the compliance of operations and investments with Islamic principles. At Alfalah Investments, we draw guidance from the Shariah Supervisory Board comprising of world renowned Islamic scholars.
It is ensured that all aspects of the Shariah are adhered to before, during and after an investment is carried out in a Shariah Compliant manner. The investment can only be made in those securities (equity, debt, etc) which comply with well-defined screening ratios and only approved by Shariah Advisors of the Fund.
Consider the Offering Document your investment roadmap! It’s a legal guide approved by SECP, packed with details on the fund’s strategy, risks, fees, and management. Procedures relating to purchase / redemption / conversion of units Read it carefully before investing to make informed decisions.
NAV stands for Net Asset Value of a mutual fund. This is basically the price of one unit of a mutual fund.
NAV can be calculated as follows: Assets of the fund – Liabilities of the fund / Number of outstanding units for that fund
In Pakistan many mutual funds publish their NAV at the end of every business day.
The Offer price or sales price of units might be different from the NAV if there is an element of “Sales Load / Front End Load”. The Offer price or sale price is declared on a daily basis by the funds and can be viewed on their websites.
Sales Load or Front-End Load is a service fee charged to an investor when buying units in Fund. The fee compensates sales team for their efforts and is mandatory to be disclosed in the Offering Document of the Fund.
The Redemption price is the price that you receive on selling a unit of your mutual fund. It may include “Back-end Load” or “Contingent Load” if it applicable according to the Offering Document of the Fund. The Redemption price is declared on a daily basis by the fund and can be viewed on their website.
Back-End Load is charged when customers redeem or withdraw money from funds. This is rarely used and is applied only in case of funds that have a “lock in” period. It is mandatory to disclose the fee before a customer and in the Offering Document of the Fund.
Investing with us is a simple process for both individual and institutional investors. You can fill out the Account Opening Form & Investment Application Form available on website or through our Investment team. You are make investment through proving physical documentation or through Online Investment Facility.
You can withdraw money from your account at any time. You have the option to withdraw the complete amount or a specific amount based on your requirements. You can fill out the Redemption of Units Form and submit through sales person or directly to the Company through email or physically or through online portal.
You can move money from a scheme that you are currently invested in to any of the other schemes that we offer. This is called a conversion transaction. You can fill out the Conversion of Units Form and submit through sales person or directly to the Company through email or physically or through online portal.
You can pledge the Units held in your account as collateral to avail financing from a financial institution. You can pledge the entire investment value of your account or a specific amount as per your requirements. To make this transaction you need to fill out the Pledge Form.
There is no lock-in in the case of open-ended funds. Except for the book closure dates, you can redeem/ encash your units at any time of the year. You will promptly receive the amount of redeemed units at your registered address or directly in your bank account within 6 working days.
Pension fund is a pool of assets forming a separate legal entity that is created with a sum of money set aside at regular intervals over the working life of a Participant and invested for capital growth and to provide a regular income after retirement to maintain a reasonable standard of living.
Alfalah Pension Fund and Alfalah Islamic Pension Fund are voluntary pension scheme registered under Voluntary Pension System Rules, 2005 and managed by Alfalah Investments (Pension Fund Manager).
For retirement planning with the aim to get regular stream of income after retirement and to avail additional tax benefits of upto 20% of taxable income (as per section 63 of ITO, 2001). Furthermore, when investing in Mutual Funds the investors tend to follow the market and are inclined to redeem their units when reasonable gains can be booked.
The Individual Pension Account in Alfalah Pension Funds can be opened by visiting their Website or through Sales representative or through Branch network across the country.
All Pakistani nationals having a valid CNIC are eligible to contribute in the scheme.
An investment allocation scheme provides an opportunity to create a personalized retirement fund through regular contributions, with allocations adjusted according to the age & risk taking capacity of the investor. Alfalah Pension Funds have three sub-funds each: Equity Sub Fund, Debt Sub Fund Money Market Sub Fund.
Based on the sub funds, Alfalah Pension Funds offers distinctive allocation schemes as per the financial goals and risk appetite of the investor: High Volatility, Medium Volatility, Low Volatility, Lower Volatility, and Customized Allocation Scheme
