Mutual Funds are regulated by Securities & Exchange Commission of Pakistan (SECP) under Non Banking Finance Companies (NBFC) Rules. SECP also regulates insurance companies, stock exchanges, listed companies offering shares to the public and also audit firms certifying the accounts.

Asset Management Companies do not have direct access to the assets in the funds (the investor's money or any securities held in the fund). The assets in the funds are in custody of the Trustees, who would only release funds for making an investment, as and when requested by any Asset Management Company. As investors of mutual funds know that at the time of investment the cheque is drawn in favour of the funds account controlled by the trustee, with the Asset Management Company having no control over it.

All asset management companies are registered with the SECP. The SECP not only regulates the Unit Trust industry but also all stock exchanges of Pakistan, all listed companies, the insurance industry, investment banking sector and the stock brokerage business. The SECP has established and continues to develop a stringent set of rules and requirements; an organization has to abide by in order to operate as an Asset Management Company.

Mutual Funds generally do not quote a fixed rate of return. The emphasis is on disclosing risk appropriately so that the investor understands the risk and expected reward.

According to Asset Management Company Rules, an Asset Management Company is not allowed to finance projects. Therefore Asset Management Companies by law cannot extend loans.

Asset Management Companies have a team of very capable professionals managing the funds according to the market trends. For details about their teams you can see the Portfolio Partners in the website.

Since units in the fund are not a tangible entity, the policy is to issue statements against all investments. These statements would be generated every time there is an activity in the account. However, the unit holder has the option to have certificates in his name on special request.

The Asset Management Company charges a management fee, which is usually charged as a percentage of the Net Assets of the fund. The fee is calculated on a daily basis and in most cases paid to the Asset Management Company by the Trustee on a monthly basis.

A copy of the Computerized National Identity Card needs to be attached with the form. Also, if the investor seeks non-deduction of Zakat, the required declaration needs to be attached.

Statements will be generated automatically on every activity in the account and be sent to the investor unless otherwise indicated.

Statements will be generated automatically on every activity in the account and be sent to the investor unless otherwise indicated.

Yes Zakat will be deducted at source unless otherwise indicated, in which case a Non-Deduction of Zakat Certificate would be required.

There is no fixed term on any funds. The investor is free to disinvest as and when desired, and therefore there is no penalty. However, we do suggest that Unit Trust investment provide the best results when invested with a long-term focus.

Yes there is a distinct tax advantage, especially for investors falling in higher income brackets. The advantage is such that most investors would be better off investing in the Mutual Funds, as compared to National Savings Schemes or term deposit certificate. An Investor in any products of Asset Management Companies are only liable to a 10% deduction at source as withholding tax on dividends and that would be the full and final tax liability.