The investment objective of the fund is to seek steady returns with a moderate risk for investors by investing in a portfolio of equity, short medium term debt and money market instruments.
The Alhamra Islamic Pension Fund (ALHIPF), under the Voluntary Pension System (VPS) was launched on 2 November 2007.
Pipf is a flexible savings cum investment plan which facilitates all individuals who are Pakistani nationals, to save for their retirement in a systematic way, topping up their savings with investment returns at their desired investment exposure and granting them special tax benefits, with numerous valuable options before, at and after retirement while maintaining compliance with Shariah. The scheme can be used as a replacement for any existing provident, pension or gratuity funds, or can be entered into alongside these funds. Systematic transition of the existing Provident/Gratuity/Pension schemes to the VPS is also possible in a manner that allows maximum tax credit to the concerned.
VPS carries clear advantages over existing saving funds. Most obvious ones are double tax savings, individualized asset allocation, minimal administration, avoiding complications associated with defined benefit schemes.
Pipf is a long only scheme and is not allowed to undertake leveraged investments.