MCB-Arif Habib savings and investment limited is a leading financial institution which offers a number of services and various investment products. These services include: asset management, investment advisory and management of mutual funds. Speaking of mutual funds, they are offering three categories of mutual funds. Firstly, conventional mutual funds, which covers equity fund, income fund, money market fund, capital protected fund, balanced fund, aggressive income fund and asset allocation fund. Secondly, they offer shariah compliant mutual funds which includes: shariah compliant equity fund, shariah complaint income fund, shariah compliant asset allocation fund, shariah compliant savings plan and alhamra Islamic active allocation fund. Thirdly and lastly, they offer different pension funds, which are Pakistan pension fund and alhamra Islamic pension fund.
The focus of this article is only on conventional mutual funds. Let’s give an insight to MCB-Arif Habib Conventional Mutual Funds and their underlying proposed mutual funds.
Fund Type | Fund Name | Investment Span |
1-Open-End Equity Fund | 1.1 – MCB Pakistan Stock Market Fund | Long-Term Period |
2-Open-End Income Funds | 2.1 – Pakistan Income Fund | Long-Term Period |
2.2 – MCB-DCF Income Fund | Medium to Long-Term Period | |
2.3 – MCB Pakistan Sovereign Fund | Long-Term Period | |
3-Open-End Money Market Funds | 3.1 – MCB Cash Management Optimizer | Short-Term Period |
3.2 – Pakistan Cash Management Fund | Short-Term Period | |
4-Open-End Balanced Fund | 4.1 – Pakistan Capital Market Fund | Long-Term Fund |
5-Open-End Aggressive Income Fund | 5.1 – Pakistan Income Enhancement Fund | Long-Term Fund |
6-Open-End Asset Allocation Fund | 6.1 – MCB Pakistan Asset Allocation Fund | Long-Term Fund |
6.2 – MCB Pakistan Frequent Payout Fund | Long-Term Fund |
Let’s discuss these funds and their types in detail.
1- Open-End Equity Funds
Equity funds are the type of mutual funds which invests in securities. They are both actively and passively managed. They are also known as stock funds.
1.1- MCB Pakistan Stock Market Fund
MCB Pakistan Stock Market Fund is an open ended equity fund which invests the investor’s money in high quality liquid stocks. Being an open-end fund will provide leverage to the investor that he/she can invest or disinvest finance at any point of time. It does not financially bind the investor. Investment in stock market is risky that’s why the returns are volatile in nature as well.
Benefits
The benefits are as follows:
- You can enjoy larger tax refund by using existing tax laws
- Diversification of investment helps you to minimize the risk
- Gives you an opportunity to invest as small as PKR 500/-
Suggested Time period for the Investment
The suggested time span for the investment in this fund is long term. As stock market is a volatile market and fluctuation in market at times cost you your money. However, investment for a long-term period will diversify the risk with the positive outcome of the market.
2- Open-End Income Funds
Income funds are the type of mutual funds which generate income for its investors by investing in securities which reap benefits in the form of dividends or interest payments. Open-End income funds are further classified into three categories. Let’s discuss those types.
2.1- Pakistan Income Fund
Pakistan Income Fund is the open end market fund which yields income for its investors by placing their funds in corporate securities and government securities. The investment is of long term fund and it cannot hold funds because of its open-end nature.
2.2- MCB-DCF Income Fund
MCB-DCF Income Fund is an ideal opportunity for those investors who have low appetite for risk. Investment in this fund will add value to your income by investing your funds in money market and short-term instruments. Besides this, to diversify the risk a small portion of funds are invested in medium to long term assets.
2.3- MCB Pakistan Sovereign Fund
MCB Pakistan Sovereign Fund is an open end fund scheme. Under the umbrella of this fund, investments are placed in bonds and debt securities issued by the Pakistan government. The foremost objective to invest in this fund is to reap benefits by investing in government securities.
Benefits
The benefits are as follows:
- Optimize your investment by diversifying the risk through portfolio management
- Offers you secure investment by placing your funds in government securities
Suggested Time Period for the Investment
Suggested time span for the investment is medium to long term period, as it not only helps in lessen your risk by diversifying your portfolio but also gives a robust increase to your investments.
3- Open-End Money Market Funds
Money market fund is an open ended fund scheme which invests particularly in short term debt securities such as Treasury Bills. Open end money market fund is further divided into two types, which are as follows:
3.1- MCB Cash Management Optimizer
MCB Cash Management Optimizer is the type of money market fund that will invest funds in the money market securities with maturity period of 180 days. Depending upon the market liquidity the major portion of the funds will be invested in short term deposits to earn higher profits.
3.2- Pakistan Cash Management Fund
Pakistan Cash Management Fund is an open funded scheme, aimed to invest in the government securities. To maintain the balance of the risky securities they invest the remaining idle funds with commercial banks with minimum rating AA.
Benefits
The benefits are as follows:
- Provides tax benefit as per current laws
- An opportunity for the short term investors to earn profits on their idle surplus.
Suggested Time period for the Investment
Suggested time period for the investment is short term time. For the considerable benefits it is recommended that they should invest their funds for long term as well to maintain balance and gain profits.
4- Open-End Balanced Fund
Balanced funds are the type of mutual funds in which the investor looks for the diversification of the investment portfolio for modest and safe returns.
4.1- Pakistan Capital Market Fund
Pakistan Capital Market Fund is the type of mutual fund which invests in range of assets to minimize the risk and for higher gain. These classes includes equity and debt instruments in Pakistan.
Benefits
The benefits are as follows:
- Offers safe and modest returns
- An opportunity to invest in range of instruments
Suggested Time Period for the Investment
Suggested time period for the investment is of long term period for a valuable gain on your investment.
Additional Reading: Key Tips for Investment in Mutual Funds in Pakistan
5- Open-End Aggressive Income Fund
Aggressive income fund is the type of mutual fund in which you invests in fixed income securities and instruments
5.1- Pakistan Income Enhancement Fund
Pakistan income enhancement fund is the open end scheme which primarily invests in debt and fixed income instruments.
Benefits
The benefits are as follows:
- Offers continual source of income
Suggested Time Period for the Investment
Suggested time period for the investment is approximately 3 years for valuable gains on your principal amount.
6- Open-End Asset Allocation Fund
Asset Allocation fund is a type of a mutual fund which provides investor an opportunity to invest in diversified portfolio, which includes wide range of asset classes.
6.1- MCB Pakistan Asset Allocation Fund
MCB Pakistan Asset Allocation fund is the type of fund which is aimed at providing absolute returns by investing in debt and equity markets.
6.2- MCB Pakistan Frequent Payout Fund
MCB Pakistan frequent payout fund will provide its investor a regular monthly income by investing in debt and equity instruments.
Benefits
Benefits are as follows:
- An opportunity to manage your funds by the highly experience professionals.
- Allows tax benefits for the investor
Suggested Time Period for the Investment
The suggested time period for the investment will be of long-term nature which helps in capitalization of the investment.
Conclusion
Bottom line is MCB-Arif Habib mutual funds provide insurmountable opportunities for its investors to invest money and diversify its portfolio to gain higher yield and exposed to less risk. At Mawazna.com we provide you with all the information necessary to made intelligent decision so that your money can safely grow with you. Besides this you can also earn profit on your invested amount.
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