Financial institutions and market-chapter Mutual funds History of mutual funds industry  Introduction of mutual funds  Benefits of mutual funds  Liquidity Denomination  Diversification  Cost advantages  Managerial enterprise 

1. MUTUAL FUNDS
HUMA SHAHID
FATIMA MEHMOOD
AREEBA SRFRAZ
RIMSHA YAQOOB

2. TABLE OF CONTENT
1. History of mutual funds industry
2. Introduction of mutual funds
3. Benefits of mutual funds
i. Liquidity.
ii. Denomination
iii. Diversification
iv. Cost advantages
v. Managerial enterprise

3. HISTORY OF MUTUAL FUNDS
The mutual funds in Pakistan are registered and legally
established in the form of a trust, under the trust act of 1882.the
mutual funds industry is registered by the Securities and
Exchange Commission of Pakistan SECP which licenses each
Assets Management Company in strict compliances with the
NBFC Rules 2003 and requires all AMCs to obtain an
independent rating. Mutual funds introduce in Pakistan in1962,
with the public offering of National Investment Trust followed by
the establishment of the Investment Corporation of Pakistan
ICP in 1966

4. INTRODUCTION OF MUTUAL FUNDS
A mutual fund is a company that pools money from
many investors and invests the money in securities
such as stocks, bonds, and short-term debt. The
combined holdings of the mutual fund are known
as its portfolio. Investors buy shares in mutual
funds.

5. INSTITUTES OF MUTUAL FUNDS
Some institutes of mutual funds in Pakistan are given below:
• National Investment Trust Limited
• AKD Investment Management Limited
• Alfalah GHP
• First Capital investments Limited
• HBL Asset Management Limited
• Lakson Investments Limited

6. BENEFITS OF MUTUAL FUNDS
• Liquidity intermediation
• Denomination intermediation
• Diversification
• Cost advantages
• Managerial expertise.

7. LIQUIDITY INTERMEDIATION
It means that investors can convert their investments
into cash quickly and at a low cost. This intermediation
helps ensure that funds are available to those who need
them while allowing depositors access to their money

8. DENOMINATION INTERMEDIATION
Denomination intermediation allows small investors access to
securities they would be unable to purchase without the mutual
fund. Most money market securities are only available in large
denominations, often more than $100,000. By pooling money, the
mutual fund can purchase these securities on behalf of investors.

9. DIVERSIFICATION
It is an important advantage to investing in mutual
funds. Small investors buying stocks may find it difficult
to acquire enough securities in enough different
industries to capture these benefits.

10. COST ADVANTAGES
It may accrue to mutual fund investors. Institutional investors
negotiate much lower transaction fees than are available to
individual investors. Additionally, large block trades of 100,000
shares or more trade according to a different fee structure than do
smaller trades. By buying securities through a mutual fund,
investors can share in these lower fees.

11. MANAGERIAL EXPERTISE
It has main features that are driven mutual funds growth has
been access to managerial expertise. It may refer to the skills,
knowledge, and experience that managers possess in making
effective decisions and leading their organizations. Even though it
has consistently demonstrated that mutual funds do not
outperform a random pick from the market, many investors prefer
to rely on professional money managers to select their stocks

12. ANY QUESTIONS

13. THANK YOU