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Mutual Funds

 

A Mutual Fund is a professionally managed pool of money from like-minded investors. It invests the money in a diversified portfolio of securities, through various schemes that address the needs of investors.

The securities a mutual fund invests in is based on the investment objective of a particular fund. Such objective is clearly laid down in the Offering Document for each fund.

The Fund adds value to the investment in two ways income earned and any capital appreciation realized through sale. This is shared by unit holders in proportion to the number of units they own.

Yes, we offer Shariah Compliant investment options across all our mutual fund categories.

There are many benefits of investing in Mutual Funds including:

  • Professional Management of your savings
  • Better return than standard investment avenues
  • Diversification
  • Tax Benefit
  • Liquidity
  • One window operation
  • Regular income stream
  • Highly regulated
  • Transparency
  • Varied choice of funds

Investment can be done in 5 easy steps:

  • Step 1: Open an account with us (in case of new investors)
  • Step 2: Download or collect the Investment Form
  • Step 3: Fill the Investment Form and attach the required documents
  • Step 4: Complete your risk profile
  • Step 5: Make your payment
  • Step 6: Submit the Form and required documents to us.

For full details, please see our dedicated page.

Yes, all Funds managed by NBP Funds Money Market and Income Funds are assigned a credit stability rating by PARCA.

Please refer to each Fund’s specific product page to view their individual rating.

Open-ended Fund: Available for subscription throughout the year. Investors can conveniently buy and sell units of the Funds from the Asset Management Company (AMC) at the related prices commonly known as Net Asset Value (NAV).

Close-ended Fund: Open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the Stock Exchanges where they are listed.

NBP Funds manages open-ended schemes categorized into following Investment Objectives:

  • Money Market Funds
  • Income Funds
  • Capital Protected Funds
  • Asset Allocation Funds
  • Balanced Funds
  • Equity Funds
  • Pension Funds

All the above-mentioned Mutual Fund schemes can either be managed in conventional manner or in a Shariah compliant portfolio depending on Investor's preference.

  • Income funds provide a better and consistent return stream to all investors regardless of the length of investment time period whereas bank returns may not even cover for inflation
  • Income funds offer tax credit subject to Income Tax Ordinance 2001, whereas bank deposits offer no tax benefit.
  • Investment in Income Funds can be withdrawn at any time without any penalty. The money is transferred in your designated bank account generally in 2-3 days. Your money in a term deposit however, can only be withdrawn after paying a penalty.

The basic difference is in the manner in which investment in the units of a Fund is redeemed.

  • Growth unit: the investment remains in the Fund until the investor redeems part or whole of the investment.
  • Income unit: The Investor opts to withdraw a certain amount at regular intervals. Income unit has two types:
    • Fixed Income Unit: The Investor specifies a fixed amount to be redeemed and transferred in the investor’s bank account at regular intervals. (In case the amount of redemption exceeds the increase in investment value during each interval, the principal investment invested by the Investor may deplete.)
    • Flexible Income Unit: The Investor authorizes the Management Company to redeem and transfer in the investor’s bank account, an amount equal to the increase in the investment value during each interval.

Listed funds are treated as listed securities on the Stock Exchange and therefore are eligible for the credit under section 62 of Income Tax Ordinance 2001.

Yes. The following procedure will be followed: • The investor has to fill out the Pledge Form (NBP Funds Form 05) available with us and submit it to the respective bank. • The Bank will send that form to Transfer Agent to mark lien on the units.

  • The Transfer Agent will mark lien on the units and inform the Bank.
  • The Bank then, subject to its own conditions, releases the loan.
  • The loan amount will vary based on the type of Fund you are investing in.

NBP Funds uses a wide variety of market representative benchmarks to judge the performance of its Funds. For information on the specific benchmarks used for each fund, please see the individual fund’s product page.

Yes, section 62 of the Income Tax Ordinance 2001 provides a tax rebate on investment in new units at applicable rate of tax to the extent of 20% of taxable income for the year or Rs. 2,000,000 or the amount of investment, whichever is lower. You can avail the tax credit if you retain the investment for twenty-four months.

Front end sales Load is variable across our product line. Please view individual product pages for fund specific Front-End Load information.

No, NBP Funds does not charge any Back-End Load on its products.