Mutual Fund Disadvantages

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Pakistan Association of Investment Funds Mutual funds Pakistan Association is the trade body duly licensed by the Government of Pakistan to the mutual fund industry in Pakistan. Asset management companies and Investment Advisory are licensed by the SECP for the launch and implementation of investment advisory services for investment and required under the laws of non-banking financial companies in 2008 MUFAP funds to become members. What is a Mutual Fund? The mutual fund is a collective investment system, which specializes in the investment pool of money collected from investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. One of the main advantages of mutual funds is that they…show more content…
Fund program Fund: Fund of funds are those funds that invest in other mutual funds. These funds operate on a variety of equity and balanced, fixed income and money market funds (open and closed-ended). Shariah-compliant (Islamic) program: Islamic funds are those funds that invest in Shariah compliant securities of any shares, instruments, leasing and so on may be approved by the legal advisor for these funds. These could provide the funds under the same categories as those of conventional funds Capital protection scheme: In this type of system, the payment of the original investment with any capital gains ensures greater may result in the end of the term of the contract from the Fund. This money is for a fixed period Tracker Index program: Index funds invest in securities to reflect market index, such as 100. The Kuwait Stock Exchange index fund buys and sells securities to reflect the selected index configuration. Fund performance tracks the performance of the underlying…show more content…
Redemption amounts payable to investors during the period of a maximum of six working days, either via check or by bank transfer by providing a form of redemption in the specific sales of AMC points Dividend payment of dividends: Dividends are paid in the form of cash on the basis of a quarterly / monthly / yearly depending on the category of the Fund and AMC AMC's. Any investor who wishes to re-invest the amount of dividend has the option to inform in advance the amount of AMC until profits be reinvested and will issue new

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