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Introduction:

mutual-invest  is a platform provides basic understanding about business and operational knowledge of mutual fund industry in Pakistan which will ultimately benefit the investors and the candidates interested to start job in back offices of the mutual funds and as well other Registrars of Shares and closed end mutual funds.  Investor can able to understand the risk involved in their investments, operational cycle, investment avenues, other benefit, and overall process of their investment. Below are introduction to some areas which are covered in detail in this forum:

 

Definition of Mutual Funds and Advisory Services

Risk: There are different nature of risk involved in mutual fund investment depend on tenure, nature of the fund and its investment areas.

Operational Cycle: Understanding about back offices execution at different stages.

Investment Avenue: Detailed analysis on investment options for different nature of funds.

Other Benefits: Awareness on extra benefits provided by AMC.

Overall Process: Detailed investment process starting from client investment till redemption proceeds to client

Key Players in the industry: Tops AMCs, Trustee, Regulator etc

And many more

Purpose and Overview:

Purpose of the platform is to make awareness about mutual funds investment, its need, benefits and basis operational activities in Pakistan. Our target  audience is youth, students related to finance, small investors and other investors who usually have idle money for the short term basis.

It is pertinent to mention that US is managing funds of Rs.15.65 trillion US dollar (during 2016) through mutual fund system, our neighbor India is managing funds of around 350 billion US $ under mutual funds . Unfortunately current No’s in Pakistan around 5-6 billion US$. Despite the No’s are not very attracting as compare to our peer countries but mutual fund industry continuously striving for the progress.

There is a lot of potential in mutual funds industry and jobs related to this sector, as per analysis 1-2% of the banking channel customers have approached for the investment in mutual fund. Despite a positive response from the customers the numbers of fresh investors are still below than the expectation of industry.  There might be several reasons of it i.e, law and order situation, rupee devaluation, political uncertainty etc which currently creating resistance in increase of of industry size but we have firm believe that industry numbers will be increase rapidly once we see improvement in above mentioned areas and also introduction of new facilities and products in mutual fund industry.

We have witnessed that Investment products are evolving day by day in response to the desires, technologies and regulatory constraints of the investors. Since mutual Fund is a trust pools the savings, which are then invested in several markets. It works in a different manner as compared to other saving schemes organizations such as banks, national savings, non-banking finance companies etc. An investor scans his options for investments and finds a collection of financial products offered by various mutual funds and market investment schemes. As most if not all capital market instruments, have an element or risk, it is very essential that the investors have a clear understanding of how a mutual fund operates and what are its advantages as well as limitations.

Keeping the investors in mind and their specific investment needs, The central message of this blog is to help a investor to understand mutual funds, its investment mechanism, its operational aspects, risk involved, nature of product  and overall operational process.

Further, we will explain the investment avenue. This section is devoted to the understanding of mutual funds and where they invest. We will also discuss the different costs involved in investment in mutual funds We will also assists in the understanding of; NAV through calculations, of various returns involved in both equity and income funds. We will also explains the offering document and its purpose, the relevance of the Fund Managers’ Report to investment in various funds. It provides a broad overview of the financial markets and its instruments and where they are traded. The Pakistan Stock Exchange along with its trading and settlement system is explained.

Furthermore we will discuss about the risk involved in the different nature of funds. We will also discuss comprehensive description of these products with their investment objective, asset allocations, target investors and costs are explained. The aim is to eliminate any ambiguity in investor mind in making a right choice for his investment.

We will discuss the technology impact on mutual funds over the period, how the AMC industry adopt technologies for the ease to his investors. If we remember a decade ago, investor has to courier his transaction forms to AMC through courier. Once the courier received  AMC process the transactions, after execution transaction confirmation send to customer through courier again. The whole process take around 8-10 working days. But now the game is totally different. Your long processing time becomes very short and in some cases your transaction execute in 2-3 minutes. AMCs have introduced several modes of transactions for investors to communicate their request in a convenient way.

We will also discuss the current requirements related to AML and compliance. Will discuss several notices and circulars issued by SECP time to time and other majors which are taken by industry to ensure transparency and fairness in mutual fund industry.

There are other lot of areas which will be updated time to time to keep update investors and as well as employees related to mutual fund industry in Pakistan.