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“MUTUAL FUNDS”
ORGANIZATION VISITED
NAFA
( NATIONAL FULLERTON ASSET MANAGEMENT)
6GROUP #
WHAT IS A MUTUAL FUND ?
“A mutual fund is a collective investment
scheme, which specializes in investing a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets”
BRIEF HISTORY OF MUTUAL FUNDS
•The mutual fund industry was born in the United States IN 1920s.
• National investment trust NIT was the first mutual fund in Pakistan, it was founded in 1962.
CONTINUOUS
ISSUANCE AND REDEMTION
CANNOT BE TRADED IN MARKET
PRICE OF SHARES IS DECIDED BY THE NAV AFTER ADJUSTING LOAD
OPEN END
ISSUE SPECIFIC NUMBER OF SHARES
CAN BE TRADED IN THE MARKET
PRICE IS DETERMINED BY INVESTOR’S SUPPLY AND DEMAND
CLOSE ENDT
YPES
Substantially lower investment risk
Mobilize savings of small investors
Provide small investors access to
the whole market
Investors saves a great deal in investment cost
ADVANTAGES OF MUTUAL FUND INVESTMENT
Portfolio Managed by Managers
ECONOMIC AND BUSINESS
CONDITIONS
DRAW
BACKS
NAFA NAFA is a Non-Banking Finance
Company with a license to perform Asset Management Services as per the NBFC Rules, 2003.
FUNDS
CASH FUND
STOCK FUND
MULTI ASSET FUND
ISLAMIC INCOME FUND
ISLAMIC MULTI ASSET FUND
INCOME FUND
GOVERNMENT SECURITIES LIQUID FUND
SAVING PLUS FUND
STOCK MARKET CEASED
RISK INCREASED IN TFCs
LOSS
NEW PRODUCTS WERE LAUNCHED
NAFA ATECONOMIC
CRUNH
CONCLUSION With sound economic growth,
higher corporate earnings and a buoyant stock market, it is expected that mutual funds would continue as an attractive investment avenue for investors.