Presentation mutual funds

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Mutual Funds
Portfolio/Fund Manager
Net Asset Value
Types of Mutual Funds
By Structure
By Investment Objective
Sources of Profit generation
Mutual Funds industry in Pakistan
Rules Govern Mutual Funds in Pakistan
Mutual Funds Companies in Pakistan
NBP Fullerton Asset Management Limited
Sponsors
Funds name
NAFA Money Market Fund

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Presentation mutual funds

  1. 1. Topic: Mutual FundsRIZWAN AHMADCMA-Stage 4e-mail : rizwan_207@yahoo.comInstitute of Cost and Management Accountants of Pakistan 1
  2. 2. Outline of Presentation Mutual Funds Portfolio/Fund Manager Net Asset Value Types of Mutual Funds By Structure By Investment Objective Sources of Profit generation Mutual Funds industry in Pakistan Rules Govern Mutual Funds in Pakistan Mutual Funds Companies in Pakistan NBP Fullerton Asset Management Limited Sponsors Funds name NAFA Money Market Fund 2
  3. 3. Mutual Funds……….? 3
  4. 4. What is a Mutual Fund ? It is a trust that pools the savings of a numberof investors who share a common financial goal Professional fund managers then investthese funds in a way that helps investorsachieve their goal 4
  5. 5. A mutual fund is managed by a management company (Asset ManagementCompany)The management company is a bank of human resources, considered to beprofessionally qualified personnelThe portfolio of mutual fund is managed by a "Portfolio Manager", whoseresponsibility is to be invested in, and satisfies the desire of the investorsEvery day, the fund manager/ portfolio manager counts up the value of all fundsholding, figures out how many shares have been purchased by shareholders, andthen calculates the Net Asset Value (NAV) of the mutual fund, the price of a singleshare of the fund on that day. 5
  6. 6. Mutual Funds INVESTORS Pool theirPassed back to money withRETURNS FUND MANAGERS Invest in Generate SECURITIES 6
  7. 7. NAV (Net Asset Value) A funds 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 7
  8. 8. Example Lets assume at the close of trading yesterday that a particular mutual fund held $10,500,000 worth of securities, $2,000,000 of cash, and $500,000 of liabilities. If the fund had 1,000,000 shares outstanding, then yesterdays NAV would be:NAV = ($10,500,000 + $2,000,000 - $500,000) / 1,000,000 = $12.00 A funds NAV will change daily as the value of a funds securities, cash held, liabilities, and the number of shares outstanding fluctuates 8
  9. 9. Types of Mutual FundsBy structure, there are two types of mutualfunds, which are: Open-end mutual funds Closed-end mutual funds 9
  10. 10. Open-Ended FundsUnlimited CapitalizationNo predetermined date of redemptionSales and purchase of units at current net asset value (NAV)No restrictions on entry & exitPurchase of units directly from fundsSale of units directly to the funds 10
  11. 11. Closed-Ended Funds Constant Capitalization Pre-determined date of redemption Purchase & sale of units at the stock exchanges 11
  12. 12. Types of Mutual Funds (By Investment Objective)By Investment objective there are two types of mutual funds, which are: GROWTH FUNDS INCOME FUNDS BALANCED FUNDS 12
  13. 13. SOURCES OF PROFIT GENERATIONA mutual fund can generate profits from two different sources, which are: Dividend Capital Gains 13
  14. 14. Mutual Fund Industry in Pakistan The National Investment (Unit) Trust is Pakistan’s largest and oldest Mutual Fund. As on June 30, 2009, NIUT had funds under management of around Rs. 28 billion invested in over 430 listed companies and had approximately 56,000 unit holders Mutual Funds 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 Currently there exists one open end (NIT) mutual fund in public sector. Twelve open-ended and fourteen closed-ended mutual funds under private sector management, and there are many more Funds in the pipeline 14
  15. 15. Rules Govern Mutual Funds in PakistanThere are two rules govern mutual funds inPakistan, 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) 15
  16. 16. Mutual Fund (Asset Management) Companies in PakistanNATIONAL INVESTMENT TRUSTNBP FULLERTON ASSET MANAGEMENT LIMITEDABAMCO LIMITEDAKD INVESTMENT MANAGEMENT LTD.AL FALAH GHP INVESTMENT MANAGEMENTAL-MEEZAN INVESTMENT MANAGEMENT LIMITEDAMZ ASSET MANAGEMENT LTD.ARIF HABIB INVESTMENT MANAGEMENT LTD.ASIAN CAPITAL MANAGEMENT (PVT.) LTDASKARI ASSET MANAGEMENT LTD.ATLAS ASSET MANAGEMENT LTD.BMA ASSET MANAGEMENT LTD.. 16
  17. 17. HABIB ASSETS MANAGEMENT LTD.HBL ASSET MANAGEMENT LTDKASB FUND LIMITEDNATIONAL ASSET MANAGEMENT COMPANY LIMITEDNATIONAL FULLERTON ASSET MANAGEMENT LIMITED - NAFANATIONAL IINVESTMENT TRUST LTD.NBP CAPITAL LIMITEDNOMAN ABID INVESTMENT MANAGEMENT LIMITEDPICIC ASSET MANAGEMENT COMPANY LTD.PRUDENTIAL FUND MANAGEMENT LTDSAFEWAY MANAGEMENT LTD.UBL FUND MANAGERS LTD. 17WE INVESTMENT MANAGEMENT LIMITED
  18. 18. CROSBY ASSET MANAGEMENT LTD.DAWOOD CAPITAL MANAGEMENT LTD.FAYSAL ASSET MANAGEMENT LIMITEDFIRST CAPITAL INVESTMENTS LTD 18
  19. 19. NBP Fullerton Asset Management Limited A subsidiary of National Bank of Pakistan 19
  20. 20. NBP Fullerton Asset Management LimitedSponsors : National Bank of Pakistan Fullerton Fund Management 20
  21. 21. NBP Fullerton Asset Management Limited 21
  22. 22. NBP Fullerton Asset Management Limited 22
  23. 23. Summary Mutual Funds Portfolio/Fund Manager Net Asset Value Types of Mutual Funds By Structure By Investment Objective Sources of Profit generation Mutual Funds industry in Pakistan Rules Govern Mutual Funds in Pakistan Mutual Funds Companies in Pakistan NBP Fullerton Asset Management Limited Sponsors Funds name NAFA Money Market Fund 23
  24. 24. Quote for future leaders" If you do not like any Rule , just Follow it , Reach the top and Change the rule ........ 24
  25. 25. rizwan_207@yahoo.com 25
  26. 26. 26

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