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NAFA Islamic Pension Fund

Lucrative pension post retirement + Tax Savings
Rs. 10 lacs grew to Rs. 20 lacs in 6 years* (Eqt-Sub Fund)

Investment Objective

NAFA Islamic Pension Fund (NIPF) aims to provide a secure source of savings and regular income after retirement to the Participants in a Shariah Compliant manner.

About the Fund

NAFA Islamic Pension Fund, a Shariah Compliant Voluntary Pension Scheme (VPS) is the perfect saving solution to fulfill your goal of a happy retirement. It allows you to allocate a part of your income for your retirement and invest it to grow. NAFA Islamic Pension Fund has a structure through which your contributions are invested based on the allocation scheme selected by you in the underlying sub-funds namely NIPF Equity Sub-Fund, NIPF Debt Sub-Fund and NIPF Money Market Sub-Fund.

  • Equity Sub-Fund: Invests in equity to achieve long-run capital appreciation and attractive returns with exposure to the volatility of the stock market
  • Debt Sub-Fund: Invests in Fixed Income securities, such as TFC’s having good credit rating and liquidity.
  • Money Market Sub-Fund: Invests primarily in short term Shariah Compliant money market instruments, such as Islamic Bank deposits, to provide a regular and stable profit stream.

Benefits At a Glance

  • Personalized Investment: Choose an allocation scheme based on your investment goals and risk and return objectives.
  • Tax Credit: Avail up to 20% savings in taxes**
  • Tax-Free Growth in Investment: Investment contributions and profits are accumulated tax-free until your retirement
  • Retirement Planning: Choose your retirement age, between 60 to 70 years, or 25 years since your first contribution to a pension fund, whichever is earlier.
  • Tax-Free early disability retirement: Avail full benefits in case of early retirement due to severe disability/illness that prevents you from working.
  • Tax-free Lump sum withdrawal: At retirement, option to withdraw up to 50% of the accumulated balance, free of tax.
  • Monthly/Annuity Plan Option: At retirement, maintain your lifestyle by receiving a regular income stream from your accumulated balance by buying an Approved Annuity Plan or Approved Income Payment Plan
  • Pension Fund Continuity: Your VPS investment is not affected by changing jobs
  • Pension Fund Portability: Transfer part or entire Pension Account from one Pension Fund Manager to another, once in a fiscal year.
  • Built-in Takaful: Ensure financial security for your loved ones with Free Life and Accidental Takaful coverage of up to Rs. 50 Lacs (Terms & Conditions Apply). Participants shall not be required to undergo a medical examination for Takaful coverage and must be under the age of 65.
  • Under the supervision of Shariah Advisory board including Dr. Imran Ashraf Usmani, Mufti Muhammad Naveed Alam & Mufti Ehsan Waquar.

Why Save For Your Retirement?

After working hard your whole life, a carefree and peaceful retirement with your loved ones is well deserved. However, an unplanned retirement can lead to financial difficulties and dependence on others. To maintain your lifestyle, spend time with your loved ones and catching up on all the things you missed while working, you need to start planning for your retirement now. The earlier you start saving, the more you will have when you retire.

Fund Facts
Fund Type Open End Shariah Compliant Voluntary Pension Scheme (VPS)
Fund Inception July 2, 2013
Fund Size Rs. 1,974 Million as at 31st July 2019
Minimum Investment Rs. 1,000/- (Rs. 10,000/- at the time of account opening)
Dealing Time (Mon – Thr) 9:00 A.M. to 5:00 P.M
(Friday) 9:00 A.M to 5:30 P.M
Underlying Funds Equity Sub- Fund, Debt Sub- Fund and Money Market Sub- Fund
Allocation Schemes Specified allocation (high, medium, low and lower volatility)
Customized allocation (based on risk/return preference & time to retirement)
Lifecycle allocation (allocation changes based on age)
Lock-in Period No Lock-in period (Subject to applicable tax on pre-retirement withdrawal as per law)
Load Front End Load: Upto 3%
Back End Load: NIL
Management Fee On average Annual Net Assets of each Sub-Fund:
Equity, Debt, Money Market = 1.50% p.a.
Eligibility
  • Pakistani having valid Computerized National Identity Card (CNIC) or National Tax Number (NTN)
  • Non-Resident Pakistani having valid National Identity Card for Overseas Pakistani (NICOP)
  • Employer on behalf of their employees
Auditors KPMG Taseer Hadi & Co., Chartered Accountants
Trustee Central Depository Company (CDC)
Asset Manager Rating AM1 by PARCA (Very High Quality)
Allocation Scheme Suitability Equity Sub Fund Debt Sub Fund Money Market Sub Fund
High Volatility Long term horizon and high-risk ability/return objective Min 65% Min 20% Nil
Medium Volatility Medium term horizon and moderate risk ability / return objective Min 35% Min 40% Min 10%
Low Volatility Short to medium term horizon and low-risk ability/return objective Min 10% Min 60% Min 15%
Lower Volatility Investors nearing retirement age and very low-risk ability/return objective Nil Min 40% Min 40%
Customized Allocation Scheme Depending on risk preference / return objective and time to retirement 0%-100% 0%-100% 0%-100%
Lifecycle Allocation Starting with a higher equity investment allocation for an individual aged 18 years, the equity allocation is gradually reduced and transferred to Debt and Money Market Funds as an individual reaches the age of 60 years.
Disclaimer

*Ending 31st July 2019; Since inception return from 02-Jul-13 till 31-Jul-19 was 14.1% p.a. Last one year return till 31-Jul-19 was -25.1% p.a. Returns for fiscal year 2019, 2018, 2017, 2016 and 2015 were -18.2% , -10.5% , 35.8% , 16.9% , 51.5% respectively; **Subject to conditions as per section 63 of Income Tax Ordinance, 2001; Disclaimer: All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results.Please read the Offering Document to understand investment policies and the risks involved.

FUND PRICES-NAV (Sep 13, 2019)

NAFA Islamic Pension Fund - Equity Sub-Fund

Offer Price: 221.5496 / Redemption: 221.5496