Mutual Funds?

[sinnersaint]

AOA Brothers...

Anyone here aware of mutual funds industry? I checked the MUFAP website and it seems that AKD is the best performing in stock funds in the 365 days. So, any comments/inputs/advise please?

 

[moizadil]

Same question.

I have been going head over heels on this topic for the last 2 months, the mufap shows exceptional gains, akdof has a cumulative gain of 700+% over the last 5 years. Things are at a point where they seem too good to be true but they are probably ture considering the impact cpec has had on the stock markets. Im also looking for someone who has had real experience of investing in Stock Exchange.

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[moizadil]

Same question.

I have been going head over heels on this topic for the last 2 months, the mufap shows exceptional gains, akdof has a cumulative gain of 700+% over the last 5 years. Things are at a point where they seem too good to be true but they are probably ture considering the impact cpec has had on the stock markets. Im also looking for someone who has had real experience of investing in Stock Exchange.

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*real experience of investing in mutual finds

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[sinnersaint]

seems like this is the wrong forum to ask for this...

 

[haroonshaikh]

[MENTION=14789]sinnersaint[/MENTION] [MENTION=131462]moizadil[/MENTION]

There is no better forum than PG for everything dear


Umm, this topic is quite huge. i am only providing minor details. rest you keep on posting queries and ill try to answer them. (I am an active investor in mutual funds)


Mutual funds are basically simple funds. you invest your money in funds and the fund manager invests that money.
Now the question in what fund they invest ? depends upon the fund you select. for example. Meezan have several funds. One of them is stock fund (In this fund they will invest 100% of the amount in stock market) this has high returns, but ultimately high risk as well.
They have also sovereign fund (it gives a stable 8-10% per year). Very low returns but the risk is low as well.
Similarly, there are gold funds (where they invest in gold only and your investment goes up and down with the gold prices in the market)

Now considering what are the advantages of investment in funds
1. You get return on your investment (based on which fund you have invested in )
2. If you are salaried employee (you can get a tax rebate of certain % on certain amount you invest)

This is just a summary. For queries. keep posting here and ill provide the details

 

[Aitazaz]

@sinnersaint @moizadil

There is no better forum than PG for everything dear


Umm, this topic is quite huge. i am only providing minor details. rest you keep on posting queries and ill try to answer them. (I am an active investor in mutual funds)


Mutual funds are basically simple funds. you invest your money in funds and the fund manager invests that money.
Now the question in what fund they invest ? depends upon the fund you select. for example. Meezan have several funds. One of them is stock fund (In this fund they will invest 100% of the amount in stock market) this has high returns, but ultimately high risk as well.
They have also sovereign fund (it gives a stable 8-10% per year). Very low returns but the risk is low as well.
Similarly, there are gold funds (where they invest in gold only and your investment goes up and down with the gold prices in the market)

Now considering what are the advantages of investment in funds
1. You get return on your investment (based on which fund you have invested in )
2. If you are salaried employee (you can get a tax rebate of certain % on certain amount you invest)

This is just a summary. For queries. keep posting here and ill provide the details

risk means ke aap ka lagaya hua paisa doob sakta hai?

 

[haroonshaikh]

risk means ke aap ka lagaya hua paisa doob sakta hai?

Yes, higher the risk, higher the unpredictability and higher the returns

 

[Aitazaz]

Yes, higher the risk, higher the unpredictability and higher the returns

thnx.are returns mothly or yearly?

 

[haroonshaikh]

thnx.are returns mothly or yearly?

Returns are cumulative and are daily updated


Let me give you an example


You invest amount PKR 100,000 in XYZ fund that is high risk and is stock market fund
On day 1 you invested PKR 100,000/-
The fund will charge an upfront fee for processing (0.5% to 2% max) This can be negotiated
You will be given a portfolio number and can create a username and password for online portal
On online portal you will be able to see daily what is the current value of your investment
If stock market rises then you might see your portfolio value as 105,000 in 15 days and if it falls you might see it fall
You can redeem the amount anytime you like.

 

[Aitazaz]

Returns are cumulative and are daily updated


Let me give you an example


You invest amount PKR 100,000 in XYZ fund that is high risk and is stock market fund
On day 1 you invested PKR 100,000/-
The fund will charge an upfront fee for processing (0.5% to 2% max) This can be negotiated
You will be given a portfolio number and can create a username and password for online portal
On online portal you will be able to see daily what is the current value of your investment
If stock market rises then you might see your portfolio value as 105,000 in 15 days and if it falls you might see it fall
You can redeem the amount anytime you like.

thnx man.can u pm me to recommend which bank/company is best to invest as well as some low to moderate risk schemes

 

[sinnersaint]

@sinnersaint @moizadil

There is no better forum than PG for everything dear


Umm, this topic is quite huge. i am only providing minor details. rest you keep on posting queries and ill try to answer them. (I am an active investor in mutual funds)


Mutual funds are basically simple funds. you invest your money in funds and the fund manager invests that money.
Now the question in what fund they invest ? depends upon the fund you select. for example. Meezan have several funds. One of them is stock fund (In this fund they will invest 100% of the amount in stock market) this has high returns, but ultimately high risk as well.
They have also sovereign fund (it gives a stable 8-10% per year). Very low returns but the risk is low as well.
Similarly, there are gold funds (where they invest in gold only and your investment goes up and down with the gold prices in the market)

Now considering what are the advantages of investment in funds
1. You get return on your investment (based on which fund you have invested in )
2. If you are salaried employee (you can get a tax rebate of certain % on certain amount you invest)

This is just a summary. For queries. keep posting here and ill provide the details

Thanks bro. So, is mutual funds better than directly investing in stock market as an individual

 

[sinnersaint]

BTW, which mutual funds are better? I checked on MUFAP (Mutual Funds Association Of Pakistan) and it seems AKD is better in Stock funds. However, there are other companies like NAFA which is in collaboration with National Bank. So, which one is more reliable or better?

 

[paradigm]

Yes its better since the funds are managed by experienced fund manager.

Thanks bro. So, is mutual funds better than directly investing in stock market as an individual

 

[paradigm]

I have heard that NAFA & Meezan both are good.

BTW, which mutual funds are better? I checked on MUFAP (Mutual Funds Association Of Pakistan) and it seems AKD is better in Stock funds. However, there are other companies like NAFA which is in collaboration with National Bank. So, which one is more reliable or better?

 

[haroonshaikh]

thnx man.can u pm me to recommend which bank/company is best to invest as well as some low to moderate risk schemes

Thanks, Replied to your PM

 

[DogePlayer]

Mutual funds give u an exposure to many sorts of stocks with a small investment amount. However if you have the time, the knowledge and the experience you would want to step in the stock market to make money. I purchased mughal steel for 30k at a price of 24 rs each, stock went above 100 and then it fell. But when it fell they decided to raise capital and give rights issues which will increase stock price to a good amount since capital is invested in the business. Im looking for a profit of 250,000-300,000 in the next month or so. Its also luck too..

 

[sinnersaint]

Mutual funds give u an exposure to many sorts of stocks with a small investment amount. However if you have the time, the knowledge and the experience you would want to step in the stock market to make money. I purchased mughal steel for 30k at a price of 24 rs each, stock went above 100 and then it fell. But when it fell they decided to raise capital and give rights issues which will increase stock price to a good amount since capital is invested in the business. Im looking for a profit of 250,000-300,000 in the next month or so. Its also luck too..

Good for you bro. I also wanted to invest directly in stock market but not everyone is good in finance or has the time to learn about the intricacies of stock market. So, I think for these kind of people we have mutual funds...?

 

[sinnersaint]

BTW, if anyone wants to invest in mutual funds, MUFAP is a very good source to get the historical performance about all funds. It even has the performance history of 3, 5 and 10 years !

Mutual Funds Association Of Pakistan

 

[sinnersaint]

BTW, since we are on this topic. Can someone please explain what does it mean when its said that stock market is negative today or it lost 100 points. Assuming your share value or NAV (in mutual fund) is 10 rupees, if the stock market goes down by 100 points, how much loss does one incur?

 

[shahzadfootball]

Thanks, Replied to your PM

I have a lot of time to kill during my summer vacations . approx 2.5 months and looking forward to gain some experience in this . I do have some background of how to work with stocks but I am not familiar with the system in Pak . Just read a lot of posts on Reddit . I was wondering if you could brief me on how I could get started . I read your post above about mutual funds and username/password and investing . But I want to know from where I can get this started . Thank you You may PM me or write here .