JS Momentum Factor ETF (-) | JSETF: - INAV

ETFs vs. Mutual Funds

Which option should you choose?


When it comes to investing, beginners often have two popular choices: Exchange-Traded Funds (ETFs) and Mutual Funds. While both offer a gateway into the investing world, understanding them in-depth can make a huge difference. In this article, we’ll explore the differences between ETFs and Mutual Funds, with a particular focus on JS Investments’ JS Momentum Factor Exchange Traded ETF (JSMFETF) that caters to investors in Pakistan.


Understanding ETFs and Mutual Funds: A Comprehensive Guide

ETFs are like a diverse salad bar in a bustling financial market. They’re investment funds that you can trade on stock exchanges, and they mirror the performance of a specific index, commodity, bond or basket of assets. When you invest in an ETF, it’s like crafting your investment portfolio by selecting from a range of assets, just like picking your preferred ingredients at a salad bar.

Now imagine dining at a high-end restaurant with a skilled chef who creates a menu that caters to your various tastes and preferences. That’s exactly what mutual funds are like! They’re professionally managed investment funds that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds or other securities. As an investor, you get a seat at the table, enjoying the curated selection without worrying about the day-to-day cooking.

 Comparative Table: ETFs vs. Mutual Funds

Criteria ETFs Mutual Funds
Management Style Typically passively managed, tracking an index Actively or passively managed by a fund manager; most are actively managed
Trading Traded on the stock exchange throughout the day at variable rates, i.e. iNAV Priced once per day at day-end
Min. Investment Can buy as low as one share, usually quoted at Rs 10/share Investors can enter the market with as little as one unit
Fees Generally lower expense ratios May have higher expense ratios and load fees
Flexibility Offers intraday trading flexibility Investor may sell or buy units during the day but all sales/redemptions are usually priced at day end at same price/NAV for all
Diversification Can provide broad market exposure Managed for diversification across asset classes


Why JSMFETF Stands Out: Unveiling a 72% Return this year!

Let’s turn our attention to a prime example of ETFs and Mutual Funds – JS Momentum Factor Exchange Traded ETF (JSMFETF). Over the past year, this ETF has outperformed all major indices, delivering an impressive return of around 72% (Performance trends from Jan – Nov 2023) to its investors. Its remarkable performance distinguishes it as a significant contender in the available investment options.


JSMFETF in Focus: Key Advantages

  • Capturing Consistent Outperformers: JSMFETF tracks high-momentum stocks, ensuring your investment aligns with market leaders.
  • Strategic Diversification: The ETF intelligently combines momentum with other strategies, offering a well-balanced investment portfolio.
  • Economic Expansion Outperformance: Demonstrating resilience, JSMFETF is designed to consistently outperform during economic expansions.
  • Rules-Based Decision Making: By relying on rules-based strategies, the ETF minimizes human biases and emotions.
  • Professional Fund Management: Backed by JS Investments (AM2+ Rated by PACRA), investors benefit from the expertise of seasoned fund managers.
  • Competitive Returns: JSMFETF’s remarkable 72% return this year, solidifies its position as a leader in the market.
  • Risk Profile: High Fund Category: Exchange Traded Fund


Conclusion: Elevate Your Investments with JSMFETF

Embarking on your investment journey can be challenging, but fear not. JSMFETF is not just a financial instrument, it’s a strategic guide to success. With its proven track record of outperforming major indices, JSMFETF paves the way for unlocking your economic potential. Choose wisely, invest strategically, and let JSMFETF be the key that unlocks the door to your financial growth.



Mutual funds are a popular way for people to invest their money. There are different types of mutual funds to choose from. Picking the best or determining the best mutual fund can be tricky. To find the right mutual fund, consider how much risk you are comfortable with and how long you plan to invest.

But what is risk? Risk arises because we are uncertain about the future. It is the chance of something going wrong or not turning out as expected. In many contexts, risk is associated with the potential for loss or harm. So, when deciding about the level of risk, think of it as a loss potential that you can bear. Simply put, if things go wrong, how worse could these be to make it unbearable?

If your risk tolerance is high, you may opt for funds with the potential for greater rewards. Conversely, those with a low-risk tolerance may find such investments unsuitable due to their preference for reduced uncertainty.

Another crucial consideration is the time frame for your investment. If you’re saving for a distant future need, opting for riskier funds could be acceptable. However, for short-term goals, it’s advisable to choose safer options.



There are different kinds of mutual funds. We can group them based on what they invest in, like Equity Mutual Funds that invest in stocks of companies. Then there are Fixed Income Mutual funds that invest in government securities or corporate bonds or Balanced Mutual Funds that are a mix of both stocks & bonds. These funds differ in how much risk they have and what they aim to achieve.

So, there’s no one-size-fits-all best mutual fund. The best depends on what you want to achieve, how much risk you can handle, and how long you want to invest.

For instance, let’s say you’re saving money for your child’s college in 15 years. Since you’re investing long-term, equity mutual funds could be a good choice. But even in equity funds, there are different types, like large and small companies. You can pick the one that matches how much risk you’re comfortable with. Small companies can be riskier than big ones, which usually do better in tough times.

You might have more than one goal. Investing in equity funds might not be the best idea if you want to buy a car in the next three years. Instead, you could look at fixed-income mutual funds. They aren’t as likely to go up and down a lot and could help you buy that car.

Let’s consider the case of Saba, a 30-year-old professional with a long-term financial goal of buying her dream home in 15 years. She’s diligent about saving and investing, and she understands that her investment choices must align with her goal, risk tolerance, and investment horizon.

Saba was recommended that she consider equity mutual funds for her home-buying goal. These funds have historically shown the potential for higher returns over the long term, making them suitable for her extended investment horizon.

However, she was advised that within the realm of equity mutual funds, there are different categories based on the types of companies they invest in. Saba learned that larger, more established companies tend to be less volatile than smaller ones. Knowing her risk tolerance, she decided to go with large-cap equity mutual funds, which offered a balanced combination of growth potential and stability.

Fast forward 15 years, and Saba’s diligent approach paid off. Her investment in large-cap equity mutual funds significantly contributed to her ability to purchase her dream home, all while providing her with the growth she needed over the years.


  1. JS Cash Fund

The Fund offers competitive returns versus prevailing Bank deposit rates and the flexibility to put in or take out your money at your convenience. JSCF is an ideal solution for short-term savings.

Category Open End -Money Market
Risk Profile Low
Returns 1 Month 1 Year** 3 Year** 5 Year**
Fund 20.52 18.92 12.59 12.07
Benchmark 22.09 20.02 12.58 11.84


  1. JS Money Market Fund

The fund aims to provide competitive returns by investing in a low-risk, highly liquid, consisting of a short-duration portfolio of money market instruments.

Category Risk Profile
Money Market Very Low
Returns 1 Month 1 Year** 3 Year** 5 Year**
Fund 20.76 n/a n/a n/a
Benchmark 22.09 n/a n/a n/a


  1. JS Islamic Daily Dividend Fund

The fund is designed to meet the investors’ liquidity needs by providing daily dividend through investment in Shariah Compliant money market instruments.

Category Risk Profile
Money Market Low
Returns 1 Month 1 Year** 3 Year** 5 Year**
Fund 20.13 18.24 11.62 n/a
Benchmark 8.57 6.91 4.78 n/a


  1. JS Microfinance Sector Fund

The fund aims to enhance by investing in prime quality Microfinance sector products, Microfinance bank deposits and short-term Money Market instruments.

Category Risk Profile
Money Market Medium
Returns 1 Month 1 Year** 3 Year** 5 Year**
Fund 23.02 21.12 n/a n/a
Benchmark 23.07 19.57 n/a n/a
  1. Unit Trust of Pakistan

The fund operates a diverse portfolio of equity and fixed income investments, whereby the equity component provides capital growth. In contrast, dividends on the equity component and the fixed income investments help generate the current income.

Category Risk Profile
Money Market High
Returns 1 Month 1 Year** 3 Year** 5 Year**
Fund -5.05 9.28 5.15 5.83
Benchmark -3.05 14.80 25.26 37.39


  1. JS Growth Fund

The fund enables investors to participate in a diversified portfolio of high-quality equity securities aiming to maximize the investment return by prudent investment management.

Category Risk Profile
Money Market High
Returns 1 Month 1 Year** 3 Year** 5 Year**
Fund -7.69 3.72 -11.58 -12.70
Benchmark -6.23 13.12 18.58 15.35

**July 2023 – Average Annualized Return as per the Morning Star Formula



Selecting the best mutual fund for yourself involves careful consideration of your financial goals, risk tolerance, investment horizon, and other factors. Here’s a step-by-step guide to help you choose the right mutual fund:

  1. Define Your Financial Goals:Determine what you want to achieve with your investments. Are you saving for retirement, a home purchase, education, or wealth accumulation? Your goals will help guide your investment decisions.
  2. Understand Your Risk Tolerance:Consider how comfortable you are with market fluctuations. Some mutual funds carry more risk than others. Assess your risk tolerance to choose funds that align with your comfort level.
  3. Identify Your Investment Horizon:Decide how long you plan to invest before accessing your money. Short-term goals may require more conservative funds, while longer-term goals could tolerate more volatility.
  4. Expense Ratio:The expense ratio represents the annual cost of managing the fund as a percentage of your investment. Lower expense ratios are generally better as they minimize costs and boost overall returns.
  5. Past Performance: While past performance does not guarantee future results, it can provide insight into how a fund has performed over different market conditions. Look for consistent performance over multiple time periods.
  6. Fund Manager Expertise:Research the fund manager’s track record and experience. A skilled and experienced manager can positively impact a fund’s performance.

Remember that selecting mutual funds is a personalized process. What works for someone else might not work for you, so tailor your choices to your unique financial situation and objectives.



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