15. Comparison of Islamic vs World Wide Mutual Fund Industry
16. Comparison of Pakistan’s vs. World Wide Islamic Mutual Funds
17. Total Mutual Fund Industry in Pakistan - Rs. 171.00 bn Size of Islamic Mutual Funds in Pakistan-Rs. 9.12 bn (5.33%)
18. Size of Islamic Mutual Fund in Pakistan - Rs. 9.114 bn Market Share of Al Meezan Investments - Rs. 6.925 bn
19. Total Mutual Fund Industry in Pakistan - Rs. 171 bn Market Share of Al Meezan Investments - Rs. 6.925 bn as of September 30, 2006
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35. The winning formula is the troika of performance , service and trust for meeting long-term goals and becoming a true success story in the world’s financial markets.
Locally, we have witnessed the sprouts of mutual funds only in the mid 90s Earlier, and for a long time, we had two funds, both in the public sector -NIT, Open-End fund launched in 1962 -ICP, a series (25 nos.) of Close-End funds launched in 1966 More funds launched in private sector – 1994-95 The growth spurned due to: economic revival, segregated divesture of ICP to private sector, and global trends - The divesture of ICP funds in lots was a landmark strategy in the Mutual Funds industry of Pakistan
Locally, we have witnessed the sprouts of mutual funds only in the mid 90s Earlier, and for a long time, we had two funds, both in the public sector -NIT, Open-End fund launched in 1962 -ICP, a series (25 nos.) of Close-End funds launched in 1966 More funds launched in private sector – 1994-95 The growth spurned due to: economic revival, segregated divesture of ICP to private sector, and global trends - The divesture of ICP funds in lots was a landmark strategy in the Mutual Funds industry of Pakistan
Locally, we have witnessed the sprouts of mutual funds only in the mid 90s Earlier, and for a long time, we had two funds, both in the public sector -NIT, Open-End fund launched in 1962 -ICP, a series (25 nos.) of Close-End funds launched in 1966 More funds launched in private sector – 1994-95 The growth spurned due to: economic revival, segregated divesture of ICP to private sector, and global trends - The divesture of ICP funds in lots was a landmark strategy in the Mutual Funds industry of Pakistan
The Islamic mutual funds market is one of the fastest growing sectors within the Islamic Financial System. Yet when compared to the mutual fund industry at large, Islamic mutual funds are still in their infancy stage of growth and development. The wider acceptance of equity funds by Shariah Scholars in early 1990s paved the way to launch Islamic mutual funds. Currently there are over 250 Islamic Institutions in some 75 countries that are managing funds worth over USD $200 billion
A Mutual Fund is a single portfolio of investments managed by an investment management company on behalf of its many investors. This allows each investor access to a professional managed pool of funds, actively managed by an Asset Management Company. By investing in the stock market through mutual funds, investors overcome the shortcomings faced regarding inability to adequately diversify, manage and efficiently trade their portfolios. A Mutual Fund is a pool of money in unit holders put their savings/ investments, which is managed by Professional Fund Managers (Asset Management Company) who invested it in different securities like shares, debt securities, money market securities etc. The pool is divided into units
Benefits of investing in a Mutual Fund. Professional Fund Management- by making the strategy that best suits the investor’s objective Diversification- portfolio of various stocks Economies of Scale- in terms of research and execution costs Liquidity – by selling & redeeming shares on an on-going basis in case of open end funds Experienced and Professional Fund Management Diversified portfolio Economies of Scale Liquidity Convenient processing Affordability Transparency Stringent regulator
Team Work at Industry Level from MUFAP For education at mass level to use Print and Electronic Media. Banking and other related industries to utilize their network formutual fund platform Performing in-depth market research to collect data on investors’ needs, preferences etc. Analysis of the customer to provide customized and targeted solutions to customer needs Fgh
Team Work at Industry Level from MUFAP For education at mass level to use Print and Electronic Media. Banking and other related industries to utilize their network formutual fund platform Performing in-depth market research to collect data on investors’ needs, preferences etc. Analysis of the customer to provide customized and targeted solutions to customer needs Fgh
Team Work at Industry Level from MUFAP For education at mass level to use Print and Electronic Media. Banking and other related industries to utilize their network formutual fund platform Performing in-depth market research to collect data on investors’ needs, preferences etc. Analysis of the customer to provide customized and targeted solutions to customer needs Fgh
The mutual fund can be segmented into following main categories on the basis of their investment and return needs: Retail Segment Institutional Segment Trusts Overseas investors Corporate Segment Semi-urban and rural Segment
Individuals Indirect selling through distributor network and creating awareness through appropriate media Institutions Personalized and direct marketing to sustain and increase sales volumes Trusts / Funds / Welfare Organizations Indirect selling through distributor network and creating awareness through appropriate media
Overseas investors Personalized and direct marketing with quick dissemination of information, coupled with prompt and timely service to sustain and increase sales volumes Educational Institutes Personalized and direct marketing to sustain and increase sales volumes Semi-urban and rural Segment This is the largest untapped market in Pakistan. Strategies to be emphasized are electronic media, simplified literature in rural languages, visits by mobile vans with audio-visual aids, hoardings, wall paintings and educational films etc.
For Islamic mutual funds to progress, a variety of challenges need to be overcome. The significant challenges are mentioned as following: Protecting and maintaining the integrity and quality of the key attractions of Islamic financial products, Ensuring performance compares favorably with non-Islamic financial products. For Islamic finance to maintain its momentum it will need to ensure its viability and that any inappropriate associations do not undermine the integrity or quality of the products and services on offer. The returns have to compare well on a risk-adjusted basis with non-Islamic ones.
For Islamic mutual funds to progress, a variety of challenges need to be overcome. The significant challenges are mentioned as following: Protecting and maintaining the integrity and quality of the key attractions of Islamic financial products, Ensuring performance compares favorably with non-Islamic financial products. For Islamic finance to maintain its momentum it will need to ensure its viability and that any inappropriate associations do not undermine the integrity or quality of the products and services on offer. The returns have to compare well on a risk-adjusted basis with non-Islamic ones.
Looking forward, for our mutual fund industry we would like to make several recommendations: We have to understand the power of team work for the growth of mutual fund industry Mass awareness and education about mutual funds Strengthening distribution network to ultimately make it the main source of revenue generation Understanding the fact that related financial industries are not a threat Promoting healthy business practices and ethical code of conduct Disseminating timely information Establishing affiliations with mutual funds associations in other countries and promote one-to-one contacts Media should play a more supportive and constructive role for awareness and disseminating information
