In the name of Allah the most beneficent and the most merciful… The lord of the world and the master of the day of judgment…

InvestmentPresentation Presented to

Sir Muhammad Ahmad Bajwa

Mutual funds are a type of investment that takes money from many investors and uses it to make investments based on a stated investment objective.

Each shareholder in the mutual fund participates proportionally (based upon the number of shares owned) in the gain or loss of the fund.

Mutual funds offer investors an affordable way to diversify their investment portfolios.

Mutual funds allow investors the opportunity to have a financial stake in many different types of investments.

These investments include: stocks, bonds, money markets, real estate, commodities, etc…

Individually, an investor may be able to own stock in a few companies, a few bonds, and have money in a money market account. Participation in a mutual fund, however, allows the investor to have much greater exposure to each of these asset classes.

Most mutual funds are professionally managed by an investment expert known as a portfolio manager.

This individual makes all of the buying and selling decisions for the fund.

There are thousands of different mutual funds in the United States.

This provides investors with many options to help them achieve their investment objectives.

• Mutual Funds can be divided into four basic categories based upon the funds investment objective.

• These categories are:1. Bonds Mutual Funds2. Stock Mutual Funds3. Index Funds4. Money Market Mutual Funds5. Balanced Mutual Funds

Type of mutual fund that invests in bonds.

There are different types of bond mutual funds.

Typically, bond mutual funds have the objective of providing stable income with minimal risk.

Type of fund that invests in stocks. These funds are also known as equity

funds. There are many different types of stock

mutual funds. Some of the most common include:Large-cap funds, mid-cap funds, small-cap

funds, income funds, growth funds, value funds, blend funds, international funds, and sector funds.

These are mutual funds whose holdings aim to track the performance of a specific stock market index.

The most common index fund tracks the S&P 500. These index funds invest in the exact stocks (and in the same percentages) as those found in the S&P 500.

Index funds also track bonds, real estate, and other types of assets.

These funds are lower cost than other types of funds.

This is the most conservative type of mutual fund.

The goal is to maintain the $1 value of its shares while providing income.

Invests in high-quality, short-term securities such as certificates of deposit, U.S. Treasury Bills, and U.S. Treasury Notes.

MMMF’s are an appropriate place for savings. These funds have typically offered higher interest

rates than bank savings accounts. Money market mutual funds are not insured by

the FDIC.

Short, Intermediate, and Long-Term U.S. Bond Funds

Short, Intermediate, and Long-Term Corporate Bond Funds

Municipal Bond Funds High-Yield (junk) Bond Funds We will talk more about bonds and bond

funds later in this unit of study.

These are also known as hybrid funds. These mutual funds invest in stocks, bonds,

and money markets. These are very diversified mutual funds.

The stock portion of the fund provides the potential for capital appreciation, while the bond and money market portion provide income.

This is a legal document which describes the investment objective of the fund, the manner in which the fund is administered and operated, the fees and other pertinent information.

The prospectus should be read thoroughly before making an investment decision.

A mutual fund that charges a commission to cover its administrative costs is called a load fund.

A front-end load charges the load when the shares are purchased, while a back-end load charges the load when the shares are sold.

A no-load mutual fund doesn’t charge a purchase or sales commission.

Top Ten Holdings

Investment objectives:

The objective of Al Meezan Mutual Fund is to optimize the total investment returns, both capital gains and dividend income, through prudent investment Management

Annual Returns: 2014 2013 2012 2011 2010 AMF 30% 51% 19% 38% 31%

Benchmark 30% 54% 14% 44% 37%

category of shareholding as at December 31, 2013S.NO. Categories of Shareholders Number of Shares Percentage

    shareholders Held  

1

Directors, Chief Executive Officer, and their Spouses and Minor Children

15 5,951,333 1.16

2Associated Companies, undertaking and related parties

4 228,797,841 44.75

3 NIT and ICP 2 3,343,374 0.65

4

Banks Development Financial Institutions, Non Banking Finance Institutions

30 18,630,165 3.65

5 Insurance Companies 14 12,446,828 2.44

6 Modarabas and Mutual Funds 33 6,566,518 1.28

7 Share holders holding 10% 1 170,012,555 33.25

8 General Public: (Individuals)      

  a. Local 13,661 101,938,274 19.939 OTHERS 346 133,595,103 26.13

Shareholders PercentageDirectors 25.51

Nishat Mills Limited 13.61

DG Khan Cement Comapny Limited 3.03

Modarba & Mutual Funds 6.99

Banks, DFIs, NDFIs, Insurance Co. & Pension Funds 12.81

Joint Stock Companies 3.57Others 0.87General Public 33.61Total 100

AVERAGE PAST PERFORMANCE

AVERAGE NAV $19.74

AFTER-TAX RETURN  18.94%

Mutual fund shares can be purchased in such small amounts, so it's easy to get started.

Mutual funds reduce risk through diversification.

Price movements of mutual funds are more predictable than those of individual stocks.

The past performance of mutual funds is a matter of public record.

Mutual funds provide full-time professional management.

Mutual funds allow you to efficiently reinvest your dividends.

Mutual funds offer you automatic withdrawal plans.

Mutual funds provide you with individual attention.

Mutual funds allow you to sell part or all of your shares at any time and get your money quickly.

Mutual funds enable you to instantly reduce the risk in your portfolio with just a phone call.

Mutual funds pay minimum commissions when buying and selling for the pool.

Mutual funds provide a safe place for your investment money.

Mutual funds can be borrowed against in case of an emergency.

Mutual funds involve no personal liability beyond the investment risk in the portfolio.

Mutual fund advisory services are available that can greatly ease the research burden.

Mutual funds are heavily regulated by the federal government.