AL-MEEZAN INVESTMENT

1. MUTUAL FUND REPORT
MADE BY
MUTUAL FUNDS:
Mutual fund are described as pooled investments .When an investor buys the unit in
a mutual fund the money is pooled with that of other investors whose goals are similar.
A professional fund manager invests the fund’s capital in profitable avenues and
attempt to earn a return for the fund’s investors. The income earned through these
investments is shared by its unit holders in proportion to the number of units owned
by them
TYPES OF MUTUAL FUND:
There are 7 common types of mutual funds and they are described below:
Money market funds:
Objective

2. The objective of money market funds is to invest in low risk avenues.These funds aims
to preserve your original investments and achieve target returns.
Risk
Money market funds are considered fairly safe and appropriate for investors who want
to limit risk or who are investing for a short period of time and want ready access to
their money. Money market funds have very low risk of losses in principal invested
along with higher certainty of target return achievement.
Types of investments
Money Market funds primarily invests in highly rated Govt. Securities, Banks, Sukuks,
TFC, TDR, CFS, Certificate of Musharka,etc
Fixed income funds:
Objective
The objective of income funds is to have a regular stream of income by investing in
debt securities that have the potential to provide a higher level of regular income than
money market funds and may also generate reasonable capital growth.
Risk
Fixed income funds are usually safer investment avenues than stock funds, but maybe
slightly more riskier than money market funds. As is the case with other Fixed Income
securities, their prices and performance is heavily dependent on the level and change
in interest rates (and other market conditions). These are usually suitable for investors
who want to avoid the high volatility experienced in the stock market.
Tyes Of Investments
Fixed income funds primarily invests in Govt. Securities, Banks, Sukuks, TFC, TDR,
CFS, Certificate of Musharka, Spread Transactions etc.
Equity Funds
Objective

3. The objective of equity funds is long-term growth of capital by investing in stocks.
There aim to grow faster than money market and fixed income funds
Risk
Because stocks are generally more volatile than other type of investments, equity
funds (which are usually composed entirely of stocks) may exhibit short-term
fluctuation and therefore carry a higher level of risk. Investors need to be prepared to
tolerate this higher risk. Equity funds could be a good investment if you have a long-
term perspective and can stay invested for at least three years or perhaps even longer.
Types of investments
Equity funds primarily invest in stocks of companies as per the investment objective
and philosophy
BALANCED FUNDS
Objective
The objective of balanced fund is to generate long term capital appreciation as well
as current income from a portfolio comprising of both equity as well as fixed income
securities. . Most of these funds follow a formula to split money among the different
types of investments.
Risk
Balanced funds which have a combination of both equity and fixed income
instruments, tend to provide investors with a moderate level of risk exposure.
Balanced funds are ideal for those looking for income and growth over medium to
long-term investment horizon. They tend to have more risk than fixed income funds,
but less risk than pure equity funds
Types of investments
Balanced funds primarily invest in equities as well as in fixed income instruments.
Capital protected fund

4. Objective
The investment objective is to protect Initial Investment Value along with the prospect
of growth upon the initial investment over the stipulated time period.
Risk
Capital protected funds are suitable for investors who do not wish to take any
significant risk and are seeking the potential for improved returns above those
available on money market/debt funds or bank deposits. They seek participation to
equity markets with the assurance that their initial principal is protected or
safeguarded.. Feature of capital protection is normally offered if the investment is held
till maturity.
Types Of Investments
Capital protected funds give you 100% capital protection, with the potential to earn a
return that is better than that being offered by bank deposits or money market funds/
instruments. In order to achieve their objective they may seek to cash-in on any stock
market upside that may be witnessed during the tenure.
Index funds:
These funds aim to track the performance of a specific index.Index funds typically
have lower costs than actively managed mutual funds because the portfolio manager
doesn’t have to do as much research or make as many investment decisions.
Specialty funds:
These funds focus on specialized mandates such as real estate, commodities or
socially responsible investing. For example, a socially responsible fund may invest in
companies that support environmental stewardship, human rights and diversity, and
may avoid companies involved in alcohol, tobacco, gambling, weapons and the
military.
Fund-of-funds:

5. These funds invest in other funds. Similar to balanced funds, they try to make asset
allocation and diversification easier for the investor
OPEN ENDED MUTUAL FUND:
Open-ended funds can be understood as the schemes that offer new units to the
investors on a continuous basis. These funds are available throughout the year for
subscription. There is no fixed maturity. In open-ended scheme, the transactions are
executed on daily basis,
CLOSE ENDED:
Closed-ended funds are the mutual funds, which offer new units to investors for a
limited period only. These funds are available only during specified days for
subscription. Fixed maturity period, i.e. 3 to 5 years. in the closed-ended scheme the
transactions are executed on real time basis.
BENEFITS OF MUTUAL FUNDS:
Accessibility:
Mutual funds are easy to buy. Even beginning investors can easily open an account
at a no-load mutual fund company, such as Vanguard Investments, and open an
account within minutes.
2. Diversification:
Mutual funds have broad market exposure. One mutual fund can invest in dozens,
hundreds, or even thousands of different investment securities, making it possible to
achieve diversification by investing in just one fund.
3. Variety:
Mutual funds come in many different categories and types.
4. Affordability:

6. Most mutual funds have minimum initial investment requirements of $3,000 or less.
5. Frugality:
Mutual funds cost less to manage than other portfolio types.
6. Professional Management:
Mutual funds have a team of professionals researching and analyzing investments so
you don't have to!
7. Flexibility:
Mutual funds have several uses and applications. All of the above benefits of mutual
funds overlap into simplicity and flexibility. You can invest in just one fund or invest in
a wide variety.
8. Simplicity
Mutual funds are easy to understand. Mutual funds require no experience or
knowledge of economics, financial statements, or financial markets to be a successful
investor.
AL-MEEZAN INVESTMENT MANAGEMENT LIMITED:
“Al-Meezan investment management limited” is a different thing from “Meezan bank
limited”. Meezan bank is a general bank which provides services to public. Meezan
bank is a financial institution that accepts deposits from the public and creates credit.
Lending activities are also performed either directly or indirectly through capital
markets. Meezan bank is government by the ‘State bank of Pakistan’.
On the other hand, Al-Meezan is asset management company, which has the
professionals who research and then invest their investor’s money in profitable areas
like bonds, stock, money market and etc. Al-Meezan is being governed by ‘Security
Exchange Commission of Pakistan’ (SECP).
SHARIAH COMPLIANCE:

7. Al-Meezan works according to the Islamic principal and it is a shariah compliant
company, Managed by the only Shariah compliant Asset Management Company in
Pakistan with a solid track record of over 23 years, and under the supervision of the
Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti
Muhammad Taqi Usmani. We asked them how Al-Meezan is different from other asset
management companies? To which they answered that the other companies earns
return through interest while Al-Meezan buys tangible assets like car and building with
the investor’s money and earn return through the rent of those asset. Their investment
philosophy is based on a long-term strategic view, seeking to deliver sound investment
returns with acceptable levels of risk and consistent value creation for our investors in
a Shariah compliant manner.
That is main why reason why investors prefer Al-Meezan over other mutual funds
management companies.
AL-MEEZAN VISION:
Al-Meezan’s vision is, “To make Shariah Compliant Investing a first choice for
investors. Having a diverse clientele base of over 80,000 investors, ranging from
institutions and businesses to individuals and High Net Worth clients, we offer
investment solutions,
mutual funds and investment advisory services which are catering to specific needs
of each of our customers”.
AL-MEEZAN PRODUCTS:
AL-Meezan has a wide range of fund products which varies from low to high risk,
growth and returns. They offer 16 products which are:
Meezan Islamic Fund (MIF)
AL-Meezan Mutual Fund (AMMF)
KSE Meezan Index Fund (KMIF)

8. Meezan Islamic Income Fund (MIIF)
Meezan Sovereign Fund (MSF)
Meezan Cash Fund (MCF)
Meezan Balance Fund (MBF)
Meezan Tahaffuz Pension Fund (MTPF)
Meezan Gold Fund
Meezan Energy Fund
Meezan Asset Allocation Fund (MAAF)
Meezan Strategic Allocation Plan (MSAP)
Meezan Financial Planning Funds of Funds (MFPF) Aggressive Allocation Plan
Meezan Financial Planning Funds of Funds (MFPF) Moderate Allocation Plan
Meezan Financial Planning Funds of Funds (MFPF) Conservative Allocation
Plan
Meezan Capital Preservation Plan (MCPP)
MEEZAN CAPITAL PRESERVATION PLAN:
Capital preservation funds are schemes which aim to preserve your principal while
offering potentially high returns, through dynamic allocation. The dynamic asset
allocation is aimed at providing higher returns through participation in Equities, while
aiming to protect downside risk of capital through participation in Income/Money
Market instruments.
The plan will use dynamic asset allocation strategy of Capital Proportion Portfolio
Insurance (CPPI) for providing competitive returns while aiming to preserve the initial
capita The objective of the Plan is to enable investors to benefit from potentially high

9. returns of a rising stock market by investing in Shariah Compliant stocks while
preserving their capital in a declining market by investing in Shariah compliant money
market funds. The plan will mature in two years.
Meezan Capital Preservation Plan- VI, launched in 2018.
The investor can withdraw money whenever they want
Minimum Investment:Initial PKR 5,000/- Subsequent PKR 1,000/-
KEY BENEFITS
Initial amount is secured
Initial duration of 2.5 years from the close of subscription.
Avail Tax Rebate on your investments as per Section 62 of ITO.
Managed by the only Shariah compliant Asset Management Company in Pakistan
with a solid track record of over 23 years, and under the supervision of the Shariah
Supervisory Board of Meezan Bank
This Product Is Suitable For Investors Who Are Seeking:
Attractive returns through equity participation along with principal preservation.
An effective strategy to reduce risk through CPPI.
Shariah complaint investment and Halal profit

10. Our Past Track Record In Capital Preservation Funds/Plans That Have Matured
Are As Follows:
Investment Objective of – Meezan Capital Preservation Plan –VI (MCPP- VI)
The objective of Meezan Capital Preservation Plan –VI (MCPP- VI) is to earn a
potentially high return through dynamic asset allocation between Shariah Compliant
Equities, Shariah Compliant Sovereign Income or Money Market based Collective
Investment Schemes, Shariah Compliant Saving Accounts and Term Deposits, while
aiming to provide capital preservation upon Initial maturity of the allocation plan.
Benchmark:
Weighted average return of KMI-30 Index, 6 months average deposit rates of three
(3) A rated Scheduled Islamic Banks or Islamic windows of Conventional Banks as
selected by MUFAP, Six months PKISRV Rates and three (3) months average deposit
rates of three (3) AA rated Islamic Banks or Islamic windows of conventional banks as
selected by MUFAP based on the actual proportion of investment in Equity, Income /
Money Market schemes made by the allocation Plan.
Duration of the Allocation Plan-(MCPP-VI):

11. The Term/ Duration of the Allocation Plan is Perpetual. However, the Initial Maturity
of - MCPP-VI shall be two and half (2.5) years from the close of the subscription
period. Management Company may re-open the subscription of units after initial
maturity with the prior approval of the Commission.
FRONT END LOAD:
A front-end load is a commission or sales charge applied at the time of the initial
purchase for an investment, usually with mutual funds and insurance policy
purchases. Al-Meezan charges 0-3% front end load.
BACK END LOAD:
A back-end load is a fee (sales charge or load) that investors pay when selling mutual
fund shares. Al-Meezan does not charge any back end load.
MANAGEMENT FEES:
No Management fee in case of investment is made in CIS of Al Meezan. However, the
Management Company shall charge a management fee of 1% of average annual net
assets in case investment is made in CIS of other AMCs and also on investment in
Cash/ Near Cash instruments, savings and term deposits made with Islamic banks or
Islamic banking windows of commercial banks.
CONTIGENT LOAD: Nil
NET ASSET VALUE (NAV):
Net Asset Value is the price of a single unit. NAV of Capital Preservation Plan VI is
50.1148 currently.
CAPITAL PRESERVATION PLAN RETURNS:
YTD RETURN: YTD of Capital Preservation Plan VI is 0.23 currently.
MTD RETURN: MTD of Capital Preservation Plan VI is 0.05 currently.
1 DAY RETRUN: 1 day return of Capital Preservation Plan VI is 0.14 currently.
15 DAY RETURN: 15 day return of Capital Preservation Plan VI is 0.23 currently.

12. Al-Meezan successfully preserve investments in ‘Capital Preservation Plans’. In past,
Al-Meezan has provided investors a return higher than the benchmark.