FAQs

chat
Ask Fund Manager
Sending

Mutual Fund Basics

A Mutual Fund is a large pool of money managed by a team of experienced individuals as part of a licensed Asset Management Company. The money collected from investors is invested in securities such as stocks, bonds, money market instruments and other assets to generate returns for investors.

Mutual Funds, operated by Asset Management Companies (AMCs), are licensed by the regulator after meeting a range of requirements. A Mutual Fund is set up under a trust structure with a 3rd party entity designated as the trustee. All investments, made by the fund, bank accounts, transactions, are managed by the trustee, according to the advice of the AMC. The trustee is obligated to follow the instructions of the AMC, as long as these instructions do not violate the “Trust Deed” which is a legal agreement signed by the AMC and the trustee that governs the operating framework of the trust. (i.e. the mutual fund).

In Pakistan, non-banking finance companies (like AMCs, Insurance Companies, Investment Banks etc) are regulated by the Securities and Exchange Commission of Pakistan, which is empowered by an act of parliament to perform this regulatory function. The SECP is responsible to protect customer interest by setting rules, under which AMCs and Mutual Funds operate. Moreover, it reviews AMCs and Mutual Funds consistently to ensure that all the rules assigned are being followed.

Open-end Funds
Open-end mutual funds allow investors to invest and redeem (withdraw) their money whenever they want. They continually create new units or redeem issued units on demand and are also known as Unit Trusts. The unit holders buy the units of the fund or may redeem them on a continuous basis at the prevailing Net Asset Value (NAV). These units can be purchased and redeemed through a Management Company, which announces offer and redemption prices on a regular basis.

Close-ended
These funds have a fixed number of shares like a public company and are floated through an IPO. Once issued, they can be bought and sold at the market rates at the Stock Exchange, where they are listed at the prevailing rates at any point of time.

A fund’s Net Asset Value (NAV) represents the value per unit. The NAV is equal to the market worth of assets held in the portfolio of a Fund, minus liabilities, divided by the number of units currently issued to investors.

NAV Per Unit = (Current Market Value of all the Assets – Liabilities) / Total Number of Units Outstanding

The sales and redemption price of units might be different from the NAV if there is an element of “Sales Load / Front End Load” or “Back End Load”. The sale and redemption price is declared on a daily basis by the funds and can be viewed on their websites.

Sales Load/Front-End Load is a small service fee charged to an investor when buying or redeeming shares in a mutual fund. The fee compensates sales team for their efforts and is mandatory to be disclosed before any payment is made.

Back-End Load is charged when customers withdraw money from funds. This is rarely used and is applied only in case of funds that have a “lock in” period. Again, it is mandatory to disclose the fee before a customer signs up for the product.

A benchmark is a standard against which the performance of a security, mutual fund or investment manager can be measured. A Mutual Fund’s performance is compared with the benchmark in order to find out whether the fund performed better than the market.

Advantages of Mutual Fund

Mutual funds make saving and investing simple, accessible, and affordable. The advantages of Mutual Funds with MCB Arif Habib include the following: –

– Accessibility
Team MCB Arif Habib is available for you around the clock. With offices across Pakistan and an online platform that makes your transactions very simple, you do not have to worry about who to invest with.

– Liquidity
You can convert your holdings into cash whenever you want. We will transfer the money to your bank account within the next couple of working days. We are also planning to launch an ATM card soon, with which you would be able to easily take the money out whenever you want.

– Diversification
Your investments are spread across multiple investments, reducing your risk and helping you take advantage of a broad range of available avenues in one go.

– Professional Management
We evaluate all opportunities that arise in the market, carefully examine them and make informed decisions. It is not an easy task for the average individual who also has their daily routine to deal with. However, we are able to do it with the support of a dedicated investment management team that is highly qualified, trained and certified on global standards to perform this task.

Opening / Operating your account

Download our iSave app and click the “New Customer” button. Please keep the following information handy when opening the account:

– Your CNIC
– Your Bank Account Number
– Access to your mobile phone and email address

Organizations planning to invest with us can reach out to us at “info@mcbah.com” and our team will get in touch with you.

iSave is an online platform introduced by MCB Arif Habib Savings, that helps you plan, start and manage your savings within a few minutes. If you are an existing customer at MCB-AH, you can switch to the iSave app and manage your investment on the go. New customers can also create an account within a few minutes using the “New Customer” section.

For more information, please visit iSave.

iSave offers a number of benefits mentioned as follows:

  • Track your investments anytime, anywhere.
    Manage your investment portfolio with just a few clicks on the go.
  • Ability to perform transactions conveniently.
    Enjoy the ease of sending and receiving money from the comfort of your home.
  • Download transactions reports
    Generate your online statements anytime, anywhere.
  • Start investing from as low as Rs 500
    Spend a minimum amount of Rs 500 to start investing on iSave.
  • Safe and secure saving in a solid institution
    We use strong security measures and ensure that only you can access your information.
  • ZERO hidden charges
    With us, you do not have to worry about any additional hidden charges.
  • Wide range of banks to choose for investment
    Choose from a vast range of banks and log into your bank’s online portal to make payments.
  • Go paperless
    Save yourself from the hassle of paperwork and sign up on iSave within a few minutes.

Yes, they can. We encourage prospective international clients to contact us via email (info@mcbah.com) or WhatsApp (+92 300 4362224).

Yes, you can invest in as many funds as you want.

You can invest for as long as you wish. However, please ensure that the fund you choose is based on the how long you wish to invest and what your financial requirements and risk appetite are.

Simply log in to your iSave account, place a request and then transfer funds via your internet banking portal. Alternatively, we can pick up cheques.

Yes, Zakat will be deducted unless Zakat Exemption Declaration Form (CZ-50) / Zakat Affidavit is submitted to the company. If you have your Zakat Affidavit with you and your profile says that you are not exempt from Zakat, you need to simply take a picture of the Zakat Affidavit from your phone and email it to us at info@mcbah.com with your CNIC number from your registered email address and we will take care of the rest.

Simply login to your iSave account, hit the redeem button and choose the fund from which you wish to withdraw funds. If your account is IBFT Verified, we will transfer the funds to your bank account, otherwise a cheque to your registered address will be sent.

If you do not receive your iSave Activation Code, you can hit the “request a call” button and our team will call you up on your specified phone number. Please ensure that you have entered the correct phone number.

Please refer to the online payment instructions specified here: https://www.mcbah.com/payment-instructions/

There are 3 types of accounts:

  1. iSave Swift Account
  2. Swift Plus Account
  3. Ultra Account
Account type Transaction limit Total investment amount during a year Document required Fund details
Swift Account 25000 per transaction 100,000 CNIC required Direct investment in Cash Management Optimizer using 1Link
Level 2 Account 800,000 per annum 800,000 face to face verification/ biometric verification
Full Account Unlimited Unlimited To fulfill all account opening requirement Any fund of choice

Once you sign up, all you need to do is follow the steps below:

  • Log in to your iSave account and enter your username (you can also use your CNIC as the username) and Password.
  • Click on Invest and fill out the investment form.
  • Select the fund and fill the amount (iSave Swift Account holders will not be able to modify the fund) Click Proceed.
  • Once you receive “Your investment request has been placed” message, you will receive an email with instructions.
  • Transfer the payment amount due. If you have online banking access with Standard Chartered Bank, Faysal Bank, Summit Bank, Habib Metro, NRSP Bank or Bank Al-Habib, you can transfer funds to us online. Alternatively, you may request a cheque pick-up via TCS Hazir (currently only available for customers from Karachi, Lahore, Islamabad and Rawalpindi).
  • You will be sent a transaction completion update as soon as it is processed successfully.

If you only open Swift Account, you will be eligible to invest in MCB Cash Management Optimizer Fund, which includes Alhamra Daily Dividend Fund and Alhamra Islamic Income Fund. These are low risk funds that aim to give you returns without exposing you to any risk.
Once you complete risk profiler after logging in, you will be allowed to invest in other products as well.
However, please note if you have opened an account on a paper based form with us, all funds will be available to you immediately.

IBFT stands for “Inter Bank Funds Transfer” and is a process that allows us to send your funds directly to your bank account whenever you choose to withdraw them.
The verification process takes a few working days and until the verification is complete, we will be sending you cheque for your funds.
Accounts may be not be IBFT Verified for a number of reasons. Please contact customer support at 0800 – 62224 for further assistance.

Upgrading from swift account to an advanced level has several benefits:

  • More funds to choose from
  • Increased investment limit (learn more)

Connect with us using our chat option on the website and our team will assist you.

There are no online transaction fees. If you choose work via one of our distributors or on ground teams, a small fee may be charged on every investment you make.

There are no additional charges if you wish to close your account. You may simply withdraw all the funds you have (relevant taxes may apply).

Growth unit: The investment remains in the fund until the investor submits a redemption form to encash partly or the entire investment.

Income unit: The investor opts to withdraw a certain amount from the investment at regular intervals.

Bachat unit: While the investor may redeem the investment at any point in time, it is advised that the investment is kept intact for a longer time period in order to gain maximum returns and minimize risk. The investor is not charged any FEL, and 0% BEL will be charged if the amount is not redeemed before 2 years.

You can utilize our various value added services to access your account balance. To monitor fund performance:

  • Log in to your iSave Account to view latest value of your savings
  • Your monthly electronic statement will be e-mailed to you every month
  • Request for your electronic statement by calling us on our 24/7 toll free number
  • SMS “BALYOUR REG NO” on 8622 from your registered mobile number
  • Subscribe to our Daily NAV alerts through SMS & EMAIL

You can get in touch with us using the following ways:

  • Call on our Toll Free No.0800 62224 where our investor services staff is available to assist you round the clock
  • Drop us an email at info@mcbah.com
  • Log in to our website and give us your feedback by filing our HelpDesk – QA Form
  • Hit “Request a Call button” and we will call you
  • Use our web chat option
  • Contact us via WhatsApp (0300-4362224).
  • You can also drop by in any of our regional offices. For details, click here (branch address page)

We encourage our customers to opt for electronic statement of account due to instant and secured delivery. You can play your part to save the environment by not using paper. However, if you still opt to receive your statement through POST, we will be posting at your place once a year. Moreover, you can request for additional statements by calling our investor services department on 0800 62224.

Please note that there are no charges for physical statement of account.

We keep you informed regarding your transaction status through SMS & EMAIL alerts when you make a transaction till the time you receive your statement of account. Moreover, you can also track transactions by visiting pending transactions menu on your iSave account.

Islamic Investments

Shariah Compliant Investments are managed by a dedicated team using shariah compliant investment tools and processes, extensively monitored by the esteemed shariah advisors.

Funds must follow a variety of rules, including investing only in Shariah Compliant companies. These companies appoint a Shariah board, carry out an annual Shariah audit and purify certain prohibited types of income, such as interest, by donating them to charity.

Tax Credit

According to Section 62 of the Income Tax Ordinance, 2001, a “resident” tax payer in Pakistan is eligible to claim a reduction on their taxes by investing in mutual funds. For details, visit our tax savings calculator. To claim your tax rebate, simply share your investment statement with your HR department to make the required adjustments.

Revised on : October 2nd, 2019