A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, and money market instruments etc. Mutual Funds are managed by professional Fund Managers. The objective of mutual funds is to generate returns for investors.
Mutual Funds are operated by Asset Management Companies (AMCs) licensed by the regulator. A Mutual Fund is set-up as Trust, with a 3rd Party entity designated as the Trustee. A legal agreement called the “Trust Deed” is signed between the AMC and the Trustee, and governs the operating framework of the mutual fund. All transactions for the mutual fund are executed by the Trustee, on instructions of the AMC - as long as these instructions do not violate the “Trust Deed”.
In Pakistan, Non-Banking Finance Companies (like AMCs, Insurance Companies, Investment Banks etc) are regulated by the Securities and Exchange Commission of Pakistan (SECP), which has been empowered by an Act of Parliament to perform this regulatory function. The SECP is responsible for protecting the customers’ interest by setting rules under which AMCs and Mutual Funds operate, as well as stringently reviewing AMCs and Mutual Funds consistently to ensure that all the rules are being complied with.
These are mutual funds which allow investors to invest and redeem (withdraw) their money from the mutual fund directly through the Asset Management Company (AMC). Investors’ units are issued / redeemed at offer/ redemption prices based upon applicable Net Asset Value (NAV). Offer and redemption prices are announced daily by the AMC.
These are mutual funds with fixed number of units, and are floated through an IPO. Once issued, the units can be bought / sold in the secondary market (via Stock Exchanges) at prevailing market prices.
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 = (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 a “Sales /Front-End Load” or “Contingent/ 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 that is deducted from the investment amount by Asset Management Companies at the time of investment in certain Mutual Funds. This fee is used to compensate the sales team and to maintain a customer facing infrastructure. It is mandatory for AMCs to disclose this charge to the investor at the time of investment.
Back-End Load: is a small fee that is charged whenever an investor withdraws money from the mutual fund. Mutual Funds with Back-end Load are very rare nowadays. Again, it is mandatory to disclose this fee before an investor signs up for the product.
Contingent Load: is a charge that becomes applicable at the time of redemption, only in case of certain pre-defined condition(s). Typically, Contingent Load is applicable on pre-mature redemptions i.e. when an investor withdraws money before maturity of a limited-term investment product. Contingent Load, where charged, becomes part of the mutual fund’s property.
A benchmark is a standard against which performance of a security can be measured. In case of mutual funds, Benchmarks comprise of a combination of market indices / representative yields reflecting the average portfolio allocations for the respective Mutual Fund.
Mutual funds make saving and investing simple, accessible, and affordable. The advantages of Mutual Funds with JS Investments Limited include the following:-
JS Investments is available for you around the clock. With offices across Pakistan and an online platform that makes your transactions very simple, you don’t really have to think too much about who to invest with.
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 launching an ATM card soon, so you should be able to just walk upto your nearest ATM and take money out too.
Your investments are spread across multiple asset-classes and instruments; 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 analyze them and then make informed decisions. An experienced, qualified and dedicated investment management team performs these functions to ensure our investor’s money is in the best hands.
For New Investors (who do not already have an account with JS Investments Limited)
Step 1: Fill the “Account Opening” Form and “Purchase of Units” Form.
Step 2: Attach mandatory documents such as copy of CNIC to your application (complete list of required documents is mentioned on the form).
Step 3: Attach payment instrument
Step 4: Send your application form along with the mandatory documents and payment proceeds to our Head Office. Once we receive your duly filled application, we will send you a welcome letter and your account statement confirming your investments with us.
For Existing Investors (who already have an account with JS Investments Limited)
Step 1: Simply fill our “Purchase of Units” Form
Step 2: Attach Payment instrument
Step 3: Send your application form along with the mandatory documents and payment proceeds to our Head Office.
Payment shall me made in favor of: “CDC Trustee JSIL Funds” or “MCBFSL Trustee JSIL Funds” depending on which fund you are investing in.
Payment can be made in the form of Cheque, Pay Order, Demand Draft or Online Transfer
Timings for application submission:
You can withdraw money from your account at any time. You have the option to withdraw the complete amount or a partial amount based on your requirements.
You can convert from one fund to another fund any time. You have the option to make Fund to Fund Transfer request via the following modes:
You simply need to send us Account Update Form with the changes you wish to make to your profile (e.g. Joint holder information, Phone number, Email address etc). You can send the scanned copy of form (for contact details only) to firstname.lastname@example.org or courier us to our head office.
JS Investments offers online portal to empower investors to access and manage their investments anytime and anywhere! Further, you can simply get in touch with our Investor Relations Team through different mediums.
You simply need to follow 4 easy steps to register yourself to JSIL Online Portal.
Step 1: Go to “online.jsil.com”
Step 2: click on “Signup” to register
Step 3: Provide accurate details (Account number, CNIC, Email, Mobile) and click submit
Step 4: Enter security code received on registered email address.
After following above steps successfully, you will receive an email on your registered email address, with the username and password for the Online Portal.
You will be issued a system generated Account Statement which will serve as a proof of your investment with JS Investments.
You can pledge your mutual fund units as collateral to avail financing from a financial institution. This facility is offered with selected investment schemes and by select Banks.
Such a “financing against pledge” facility is available on majority of JS Investments’ mutual funds.
According to Section 62 of the Income Tax Ordinance, 2001, a “resident” tax payer in Pakistan is eligible to claim a reduction in their taxes by investing in mutual funds.
To claim your tax rebate as a salaried person, simply share your investment statement with your HR dept to make the required adjustments!
Non-salaried individuals may claim their tax rebates by adjusting their tax liability at the time of filing their income tax returns.
Yes, Zakat will be deducted at the time of redemption or dividend payment. If you want Zakat to not be deducted, please submit “Zakat Exemption Declaration” Form (CZ-50) / Zakat Affidavit to JS Investments by sending us a scanned copy at email@example.com or courier us to our Head Office.
You can contact our Investor Relations team for quick resolution of your concerns.
Toll Free: 0800-00887
SMS: Help to 8027
A Voluntary Pension Scheme (VPS) is a specialized investment scheme designed to help persons regularly save and invest pre-retirement, and enjoy regular monthly income post-retirement.
Any person below retirement age can invest in JS Voluntary Pension Schemes.
Some of the benefits of Voluntary Pension Schemes are as follows:
Investment in JS Voluntary Pension Schemes (VPS) can be started with just Rs. 1000/-. There is no mandatory subsequent investment. However, it is strongly recommended that investors regularly (monthly or quarterly) invest in VPS to build a healthy savings pool for post-retirement period.
Income Tax Savings on up to 30% of Income are available by investing in JS Voluntary Pension Schemes (VPS).
If you are a salaried person, you can claim your Income Tax credit on VPS investments by sharing your “VPS account statement” with your employer’s payroll department. Your monthly income tax deduction will be reduced accordingly. For non-salaried persons, Income tax credit can be claimed at the time of filing income tax returns.
Yes, you may invest in both Mutual Funds and Voluntary Pension Schemes at the same time. In fact, JSIL encourages its customers to invest in multiple products at the same time to benefit from diversification.