1. What Is a Mutual Fund ?
• It is a trust that pools the savings of a number of investors
who share a common financial goal
• Professional fund managers then invest these funds in a way
that helps investors achieve their goal

2. • The portfolio of mutual fund is managed by a “Portfolio
Manager” whose responsibility is to be invested in , and
satisfies the desire of the investors
• Every day, portfolio manager counts up the value of all
fund’s holding, figures out how many shares have been
purchased by share holders, and then calculates the Net
Asset Value (NAV) of the mutual fund, the price of a single
share of the fund on that day.

3. NAV (Net Asset Value)
A fund’s NAV fluctuates along with the value of its underlying
investments. The formula for NAV is:
NAV = (Market Value Of All Securities Held By Fund+ Cash and
Equivalent Holdings-Fund Liabilities ) / Total Fund Shares
Outstanding

4. Types Of Mutual Funds
By structure, there are two types of mutual funds, which are:
• Open-end mutual funds
• Closed-end mutual funds

5. Open-Ended Funds
• Unlimited Capitalization
• No Predetermined date of redemption
• Sales and Purchases of units at current net asset value
(NAV)
• No restrictions on entry & exit
• Purchase of units directly from funds
• Sales of units directly to the funds

6. Closed-Ended Funds
• Constant Capitalization
• Pre-determined date of redemption
• Purchase & sale of units at the stock exchanges

7. Sources Of Profit Generation
Dividend Capital Gains

8. Mutual Fund Industry In Pakistan
• Mutual fund were introduced in Pakistan in 1962,with the
public offering of National Investment (Unit) Trust (NIT)
which is an open-end mutual fund in the public sector. This
was followed by the establishment, of the investment
corporation of Pakistan (ICP) in 1966, which subsequently
offered a series of closed-end mutual funds.

9. Rules Govern Mutual Funds In Pakistan
There are two rules govern mutual funds in Pakistan, which
are:
1. Investment Companies and Investment Advisors’ Rules
1971. (Govern Closed-end mutual funds)
2. Asset Management Companies Rules, 1995.
(Govern Open-ended mutual funds)

10. Mutual Fund (Asset Management Companies In Pakistan)
• NATIONAL INVESTMENT TRUST
• NBP FULLERTON ASSET MANAGEMENT LIMITED
• AKD INVESTMENT MANAGEMENT LTD
• AL FALAH GHP INVESTMENT MANAGEMENT
• AL-MEEZAN INVESTMENT MANAGEMENT LIMITED
• AMZ ASSET MANAGEMENT LTD.
• ARIF HABIB INVESTMENT MANAGEMENT LTD.
• ASKARI ASSET MANAGEMENT LTD
• HBL ASSET MANAGEMENT LTD.
• UBL FUND MANAGERS LTD.