(Mr. Syed Hassan Shahzad Gardezi ) ( AVP )

Special thanks to

Mubashar Maqbool 13-32 Waqas Akram 13-37 M.Shakeel 13-43 Raza Tahir 12-24

Group Members

Your Investment & NAFA grow Together

• Introduction • Company’s Profile• What is NAFA ?• Fund Categories• Funds Under the categories &

features• Pension Funds • How to Invest in NAFA ??• Why To invest in NAFA ??• SWOT Analysis

Points To Be Discussed

•A Non-Banking Finance Company .•Licensed to perform Asset Management Services & Advisory services (the NBFC Rules, 2003)

Main Sponsors •NBP & Alexandra Fund Management Ltd. (a member of Fund Management Group, Singapore)

•Rated as the 4th top most Asset Management Services Company in Pakistan .

• Regulated under SECP .• License for Investment Advisory Services .

• License for Asset Management Services .

• Managing 11 open ended mutual funds• 2 pension funds . • Ranked as (Very High Mgt. Standard ) “AM2” by PACRA .

Mutual Funds A mutual fund is a trust. It pools money from like-minded investors Invests the money in a diversified portfolio

of securities.

Mutual Funds Categories of NAFA o Money Market Fundo Shariah Compliant Fundso Income Fundso Asset Allocation Fundo Balance Fundso Equity Fund

oNAFA Saving PlansoNAFA Funds :

1. NAFA Gov. Securities Fund 2. Money Market Fund3. Saving Plus Fund4. Riba free Saving Fund5. Financial Sector Income Fund6. Islamic Aggressive Income Fund7. NAFA Income Opportunity Fund 8. NAFA Asset Allocation Fund9. NAFA Multi Asset Fund10. NAFA Islamic Asset Allocation Fund11. NAFA Stock Fund

o2 Pension Funds

Income Opportunity

NAFA Saving Plans Open – Ended

Underlying Funds - NAFA Money Market Fund , NAFA Saving Plus Fund  and NAFA Asset Allocation Fund .

Purpose - To achieve goals based target wealth with added comfort of optional life and accidental insurance.

EligibilityAge18 – 65 years having CNIC . NIC for Overseas Pakistani (NICOP)

Minimum Contribution - Rs. 5,000/- Payment via - Cheque , bank draft, pay order.

“An optional Life and Accidental Death Insurance coverage for the investors”

Accidental death - Within 3 months of investment gives 3,000,000/- as at Event Date payable in lump sum to Nominees .

Insurance Provider - Jubilee Life Insurance company Limited (JLIC)

MONEY MARKET FUND (MMF) Open-end fund .

Invests in short-term T-Bills, bank deposits . and money market instruments.

Has a very low credit risk .

Minimum Investment Rs.10,000/-(Growth Units).

NAFA Govt. Securities Liquid Fund Open-end Money market fund .

No direct or indirect exposure to shares, TFCs

Provides safe and high returns

Investment in short-term Government securities (T-bills) and AA above rated banks.

Generates high return with minimum risk.

NAFA Govt. Securities Liquid Fund Provide easy liquidity and reasonable income by investing in short-term Government Securities.

Minimum Investment Rs.10,000/-(Growth Units)

Rated AAA (f) by PACRA .

Three category of Shariah Complaint Funds1.NAFA Islamic Asset Allocation Fund2.NAFA Islamic Aggressive Income Fund3.NAFA Riba Free Savings Fund

NAFA Riba Free Saving Fund Open-end Shariah compliant income fund

Halal returns via investment in : Government securities ( Ijarah ) Shariah compliant money market

instruments (rated AA- & above) Islamic Banks/ Islamic windows of

conventional Banks rated A- or above.

NAFA Riba Free Saving Fund Provide preservation of capital

Earning of a reasonable rate of return

High degree of liquidity by investing in short term Shariah Compliant banks and money market / debt securities.

Minimum Investment Rs.10,000/-(Growth Units) .

NAFA Islamic Aggressive Income Fund

Open-end Shariah compliant Aggressive Income fund

No direct exposure to shares.

Investments include :Shariah compliant money market

instrumentsShariah compliant Government

Securities

NAFA Islamic Aggressive Income Fund Preservation of capital

Earn a reasonable rate of return in a Shariah Compliant manner.

Investing in Shariah Compliant income investments only .

Minimum Investment Rs.10,000/-(Growth Units) .

NAFA Islamic Asset Allocation Fund A Shariah Compliant Open-end Asset

Allocation fund.

Provide long-term capital appreciation .

Moderate risk profile

Medium to long-term investment horizon.

NAFA Islamic Asset Allocation Fund Provide stable returns via dynamic allocation to :

Shariah Compliant equities Fixed income instruments

depending upon market conditions.

Provides a combination of capital growth and income .

Attractive returns at moderate levels of risk

Investing in a variety of Shariah Compliant securities, Equities, Musharakah, Murabahah, Ijarah etc.

NAFA Asset Allocation Fund Open-ended .

Provides investors an opportunity for long-term capital appreciation .

Investment includes EquityFixed income Money market instruments.

NAFA Asset Allocation Fund

Generate income by investing in : Debt market Money market securities

Generate capital appreciation by investing in : Equity Market Equity related securities.

Minimum Investment Rs.10,000/-(Growth Units)

• Open-ended .• Provide safe and consistent returns via

investment in : Short-term Government securities Money market instruments (rated AA) Banks rated A or above..

• Minimize risk• Preserve capital• Generate a reasonable return along with a

high degree of liquidity from a portfolio primarily constituted of bank deposits and money market instruments

• Open-end Income fund• Provide income enhancement• Preservation of capital by investing in :

Prime quality Financial Sector TFCsBank deposits Short-term money market instruments.• Remains invested over 70% in Financial Sector debt

securities.• Also invests in AAA rated Government Securities. • And / Or AA- rating securities .• Minimum Investment Rs.10,000/-(Growth Units)

• Open-end Income fund• No direct exposure to shares.• Investments include :

Money market instruments Government Securities Debt securities (TFCs )

• Preservation of capital • Reasonable rate of return via investing

primarily in money market and debt securities having good credit rating and liquidity.

• Minimum Investment Rs.10,000/-(Growth Units)

• Open-ended Balanced fund.• Provide long-term capital appreciation with a

moderate risk profile • Medium to long-term investment horizon• Investment in :

Portfolio balanced between equities & fixed income instruments.

• Provide investors with a combination of capital growth and income.

• Attractive returns at moderate levels of risk • Investing in a variety of asset such as stocks,

bonds, money market instruments,• Minimum Investment Rs.10,000/-(Growth Units)

• Open-end Equity fund.

• for Investors seeking higher capital growth with high risk exposure and availing tax benefits with the ease of withdrawing money at their convenience.

• Provide investors with long term capital growth from an actively managed portfolio invested primarily in listed shares in Pakistan. 

• Open End Voluntary Pension Scheme (VPS) .• Provide a secure source of savings and regular

income after retirement to the Participants .• Contribution as desired by the participant.• Retirement - 60 to 70 years or 25 years from

the date of first contribution .• Free Accidental death and disability

coverage up to Rs.1 million • Transfer part or entire Pension Account

from one Pension Fund to another with 21 days prior notice .

• Step 1: Open an Account With NAFA:

• first open an account with NAFA before making any investment.

• Complete the Account opening form & Open A/C .

• NAFA Account No. will be allotted which would be used for others transactions in NAFA Funds.

Step 2: Download the Investment Form.

• You can now make investments in NAFA Funds.• Complete the investment form .

Step 4: Complete the Risk Profile

• Complete the Risk Profile form .

Step 5: Make Payment

• Payment can be made in the form of:a. Cross Chequeb. Pay Orderc. Demand Draft

Note: Cash will not be accepted.

Step 6: Submit the Form and Documents

• You can submit your duly filled Form (along with the payment instrument)

Note:• Your Form may not be processed if any

discrepancy may arise

• Low Investment requirement .• Ease of use .• Provides diversified portfolio to invest .• Provides Takaful Services with its plans.• Covers short – Term , Medium & Long – Terms

investment Plans . • Withdrawal at anytime in 2-3 days from all

over Pakistan depending on nature of fund

• Diversified product slate• Offering a wide array of asset classes i.e.

equity, income, balanced, Islamic etc.• Risk reduction • High return potential.• Mutual funds have made stock investing more

feasible for investors by reducing risk • Portfolio diversification .• Offering higher return through superior stock

selection .• Tax incentives to investors.

• Not been able to educate all investors of the benefits of mutual funds.

• Limited retail penetration and concentration of Corporate .

• Low management fee due to competition and distribution .

• Accounting expenses not being allowed to be charged to the funds

• Does not leave enough room to make necessary expenditures on sales force .

• Large unexploited retail segment .• Money market mutual funds presently offer a

return of around 8.0% per annum.• Large informal/rural sector savings .

• Mutual fund assets are just 4.7% of bank deposits in Pakistan vs. 14% in India, and over 100% in the US.

• In Pakistan, the number of mutual fund investors is around 134,000 against about 30 million bank account holders.

• National Savings Schemes (NSS) offering higher interest rates than market-based investment avenues despite sovereign guarantees.

• Institutional / corporate withdrawals, in case tax arbitrage is eliminated or reduced.

• Investors concentration .• Macroeconomic instability

THANK YOU FORTHANK YOU FOR YOUR ATTENTION!!!YOUR ATTENTION!!!