Al-Meezan mutual funds provides their customer a trusted opportunity to invest their funds and earn high yield on it. Al-Meezan mutual funds products are specialized in sharia compliance, this gives them a unique advantage over other mutual funds. As Al-Meezan has offered shariah compliant mutual funds in the market targeting the customers normally tend to hesitate investing money in conventional mutual funds.
Different Types of Al-Meezan Mutual Funds
The following are different types of Al-Meezan Mutual Funds currently being offered in Pakistan:
A- Equity Funds
Equity funds provides an opportunity to its customers to invest in high risk listed securities which yields higher returns. Equity funds are actively managed and special attention has been given to them due to its risky nature. Equity funds are classified into two categories, which are as follows:
- Meezan Islamic Fund
- Al-Meezan Mutual Fund
Meezan Islamic Fund is an open-end mutual fund with effect from August 5,2011 before that it was treated as a close mutual fund is an open-ended sharia complaint mutual fund, which only invests in listed companies approved by their shariah advisors. Key features of Meezan Islamic Fund are as follows:
- It is the largest open-ended equity fund in the private sector of Pakistan
- It provides higher cumulative returns since its inception. For example, from August8,2003 to March30,2018 its cumulative returns in percentage are 1282% PKR.
Al-Meezan Mutual Fund was previously a close ended fund but then convert into open end mutual fund with effect from August 5, 2011. It is also shariah complaint equity fund which invest its funds in businesses with strong financial position and foreseeable market growth. Key features of Al-Meezan Mutual Funds are as follows:
- It provides you with impressive long-term growth return.
- It provides the customer a diversified equity fund targeted to produce capital appreciation by minimizing risks.
B- Index Tracker Funds
Index tracker funds which are commonly known as Index Funds, are open ended sharia complaint funds. The investment objective of index tracker funds is to provide their investors with gains that are aligned with the performance of the KSE Meezan Index 30(KMI-30). Index Tracker Funds invests only in the stock of companies specified in the KMI 30 Index.
Key features of Index Tracker Funds are as follows:
- It provides you one window solution to invest your money in every single company which comprises the KMI 30 Index.
- It gives you a cost-efficient way to invest in KMI 30 Index
- It gives you an access to invest in the sought after Islamic Index fund available in Pakistan.
C- Sector Funds
Meezan sector funds is a type of a mutual fund which invest in the specific sector of the economy. The specific sector includes energy and utilities. It invests the money in shariah complaint energy sector stocks which are available at Pakistan Stock Exchange(PSX). Key features of sector funds are as follows:
- Provides an opportunity to invest in open-ended shariah compliant energy funds
- It provides you tax benefit under section 62 of ITO
- It is actively managed by the experienced fund managers which make sure that your investment will earn high gains.
- It also provides benefit to your funds by the rise in the global oil prices
- It also provides you an opportunity to invest in the mature sector which is aimed to take benefit from the China-Pakistan Economic Corridor.
D- Balanced Funds
Balanced funds offer its investor to take medium level risk, these are not high-risk funds. Balance funds are a blend of both growth and income as they invest in equities and in fixed securities as well. These are ideal mutual funds for those people who want to invest in low risk funds and at the same time also wants to earn profits. Key features of balanced mutual funds are as follows:
- It provides safer returns with moderate risk
- It provides its investors a balanced strategy to meet their financial obligations within short span of time with low risk.
E- Asset Allocation Funds
In Asset allocation fund the investor is given an opportunity to invest in various asset classes which includes money market and capital market. Besides this, it also provides the benefit of diversification through single investment. It tends to earn higher returns by investing in fixed income and money market funds. The key features of asset allocation funds are as follows:
- It provides you an opportunity to maintain your asset allocation by continuous rebalancing.
- It also provides tax benefits under the existing tax laws and subject to the company policy.
- It provides an opportunity to earn higher capitalization by investing in broad mix of asset classes.
F- Income/Money Market Funds
Income/Money market funds are the type of funds which promote investments in fixed income securities. These fixed income securities include government securities, bonds and Islamic income instruments. Income/Money market funds are classified into three categories, which are as follows:
- Meezan Islamic Income Fund
- Meezan sovereign Fund
- Meezan Cash Fund
Meezan Islamic Income Fund provides their investor with halal and high stream of income by investing their money in government securities, sukuk bonds, certificates of investment and others. Key benefits of Meezan Islamic income Fund are as follows:
- It provides its investor a long term regular income solution.
- It protects your investment from market volatility
Meezan Sovereign Fund provides an opportunity to invest in shariah compliant government securities with high ranking of “AAA” by the renowned credit rating companies and earned reasonable rate or return while maintaining the principal amount. The key features of Meezan Sovereign fund are as follows:
- It provides high income with low risk due to investment in Islamic money instruments.
- It also provides safety of principal amount along with stable returns on investment.
Meezan Cash Fund provides stable returns by investing the funds of the investors in liquid and short term shariah complaint money market as well as debt securities. The securities should be ranked “AA” by the credit rating companies. The key features of Meezan cash funds are as follows:
- It is of highly liquid nature
- It also provides stable and halal returns
Additional Reading: Key Investment Options Offered by Conventional UBL Mutual Funds
G- Funds of Funds
Funds of funds are the mutual funds which invests in other mutual funds for example, investment in equity mutual funds. It provides its investor a one window solution to invest in multiple mutual funds. The key benefits of the funds of funds are as follows:
- It provides an opportunity to invest in risky funds through systematic investment planning which lessen your risk and optimize your return.
- It is also a tac efficient mutual fund
H – Commodity Funds
Commodity funds provides you opportunities to invest in different commodities which includes gold, silver, natural gas and crude oil. Key features of commodity funds are as follows:
- It provides high purity of gold Provides tax benefits as per the current laws
- It provides an opportunity to diversify your investment.
Al-Meezan mutual funds provides you an opportunity to invest in wide ranging funds. Visit Mawazna.com to know about the secure utilization and investment of money by knowing about different mutual funds offered by the leading financial institutions in Pakistan.
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