Mutual Funds Ppt

“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.