Arif Habib Investments and all other Asset Management Companies are regulated by Securities & Exchange Commission of Pakistan (SECP) under Non Banking Finance Companies (NBFC) Rules. SECP also regulates insurance companies, stock exchanges, listed companies offering shares to the public and also audit firms certifying the accounts.  

Arif Habib Investments is an Asset Management Company and does not have direct access to the assets in the funds (the investor's money or any securities held in the fund). The assets in the funds are in custody of the Trustees, who would only release funds for making an investment, as and when requested by Arif Habib Investments. Even at the time of investment, the cheque is drawn in favour of the funds account controlled by the trustee, with the Asset Management Company having no control over it. 

As an asset management company, Arif Habib Investments is registered with the Securities & Exchange Commission of Pakistan (SECP). The SECP not only regulates the Unit Trust industry but also all stock exchanges of Pakistan, all listed companies, the insurance industry, investment banking sector and the stock brokerage business. The SECP has established and continues to develop a stringent set of rules and requirements; an organization has to abide by in order to operate as an Asset Management Company.

Mutual Funds generally do not quote a fixed rate of return. The emphasis is on disclosing risk appropriately so that the investor understands the risk and expected reward. 

According to Asset Management Company Rules, an Asset Management Company is not allowed to finance projects. Therefore Arif Habib Investments by law cannot extend loans. 

Arif Habib Investments has a team of very capable professionals managing the funds. To learn more about our team you can access the management section in the "about us" drop down on the website. A customized state of the art software developed to the company's proprietary specifications also plays a critical role in enhancing our efficiency.  

Since units in the fund are not a tangible entity, the policy is to issue statements against all investments. These statements are generated every time there is an activity in the account. If however, the unit holder wishes to also have certificates against units he/she will have to turn in a special request using the Service Request Form AHI 06.  

An open-end fund does not have a fixed pool of money. The fund manager continuously allows investors to join or leave the fund. The fund is set up as a Trust, with an independent trustee, who has custody over the assets of the trust. Each share of the trust is called a Unit and the fund itself is called a Unit Trust. The portfolio (pool) of investments of the Unit Trust is (normally) evaluated daily by the fund manager on the basis of prevailing market prices of the securities in the portfolio; this market value of the portfolio is divided by the number of Units issued to determine the Net Asset Value (NAV) per Unit. An investor can join or leave the fund on the basis of the NAV per Unit. However, the fund manager may have a small charge called “load” added to the selling price or deducted from the redemption price of the Units so as to cover distribution costs. Under the Pakistan law, an open-end fund is set up under the Non Banking Finance Companies Rules.

The Asset Management Company charges a management fee, which is usually charged as a percentage of the Net Assets of the fund. The fee is calculated on a daily basis and in most cases paid to the Asset Management Company by the Trustee on a monthly basis. 

The difference is in their investment policies. While, the Balanced Portfolio is 50/50 split between the two funds the PSM and the PIF, the Smart Portfolio allocates 75% to the Pakistan Income Fund (PIF) and 25% to the Pakistan Stock Market Fund (PSM). Unlike the Balanced Portfolio where the Balance is not maintained the Smart Portfolio reallocates regularly between the two funds to maintain the 75/25 balance. Therefore, every time there is a surge in the stock market the funds in excess of 25% will be cashed out from the PSM and allocated to the PIF and vice versa. Therefore in the long run you are buying whenever there is a bearish market and selling in a bullish market, making the Stock Market volatility work for you.  

Asset management companies are not permitted to quote returns on the funds they are managing as per Asset Management Company Rules.  

Pension Builder matures at the age of 60. So the term of the plan is 60 - the age of the investor.  

A copy of the Computerized National Identity Card needs to be attached with the form. Also, if the investor seeks non-deduction of Zakat, the required declaration needs is be attached.  

Statements will be generated automatically on every activity in the account and be sent to the investor unless otherwise requested. 

Yes, Zakat will be deducted at source unless otherwise indicated, in which case a Non-Deduction of Zakat Certificate will be required.  

An investor can invest through any one of the Distributors, Regional officers, Zonal officers or our office addresses on our web  or call 111-468-378 (111-INVEST) in Karachi, Lahore, Multan, Faisalabad, Rawalpindi/Islamabad and Peshawar. Callers calling from other cities will need to dial the area code before dialing the number.  

There is no fixed term on any one of the plans or the funds. The investor is free to disinvest as and when desired, and therefore there is no penalty. However, we do suggest that Unit Trust investment provide the best results when invested with a long-term focus.  

An investor can trade in units of PSM if he/she feels that he is a good judge of the market? This could be done through a special product called Smart Trader designed for such investors. The Smart Trader allows the investor to take a position in the market for a charge of only 0.2%.

Yes there is a distinct tax advantage, especially for investors falling in higher income brackets. The advantage is such that most investors would be better off investing in the Pakistan Income Fund (PIF), even as compared to National Savings Schemes. An Investor in any products of Arif Habib Investments is only liable to a 10% deduction at source as withholding tax on dividends and that would be the full and final tax liability. Besides investors of mutual funds are also entitled to an investment allowance