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.

Open-end Funds
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.
Close-ended
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:-

– Accessibility
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.

– 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 launching an ATM card soon, so you should be able to just walk upto your nearest ATM and take money out too.

– Diversification
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.

• Make Transaction Online Through JSIL Online Portal
• Fill a redemption form and submit to your branch or Head Office

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:

• Make Transaction Online Through JSIL Online Portal
• Fill a “Fund To Fund Transfer” form and submit to your branch or Head Office

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 ir@jsil.com 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.

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 ir@jsil.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
Email: ir@jsil.com
SMS: Help to 8027

Any person below retirement age can invest in JS Voluntary Pension Schemes.

Some of the benefits of Voluntary Pension Schemes are as follows:

• Flexible contributions pre-retirement
• Regular monthly income post-retirement
• Choice of allocations ranging from “Conservative” to “Aggressive”
• Attractive Income Tax Savings (As per ITO)
• Free Takaful coverage

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.

Up to 20% tax rebate is available for investors who have invested 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.

The JSMFETF operates on a proprietary smart beta strategy that aims to capture Momentum in the stock market. The momentum factors refers to the tendency for stocks that have performed to continue to outperform the market. The JSMFETF seeks to capture this by holding a unique basket of securities.

JSMFETF can potentially have two types of returns: Capital Gains: Investors can trade JSMFETF like a stock by buying it at a low price and selling it at a high price to realize the profit/gain. Dividends: The fund manager usually receives dividends from the securities that comprise the JS MFETF basket. The dividends may be distributed to JSMFETF unit holders after the deduction of management fee etc. Dividend distribution policy of the JSMFETF is described in Offering Document.

The JSMFETF offers a low cost and convenient method of investing in a unique basket of securities that aim to outperform the general equity indices. The JSMFETF is appropriate for investors that wish to do so and have the appropriate risk appetite. The JSMFETF is also appropriate for investors wishing to diversify their existing equity portfolio and/or wish to add Momentum to their portfolio of holdings in order to enhance returns. The JSMFETF offers a flexible and user friendly method of investment for those unskilled or unwilling to invest in individual stocks.

New investors: If you are a new investor you need to open a trading (brokerage) account with any of the PSX TREC Holders or brokerage firms. Existing brokerage account holders: If you are an existing investor, you can buy and sell the JSMFETF units through your existing trading (brokerage) account opened with any of the PSX TREC Holders.

Resident person other than a company shall be entitled to a tax credit under the Income Tax Ordinance 2001, on purchase of new Units. Refer to your Tax Advisor for further information.

Individual stocks and JSMFETF trade alongside each other on the Stock Exchange. But there are two major differences:

• JSMFETF offers diversified exposure across a basket of stocks and therefore can offer higher risk adjusted return compared to a individual stock.
• JSMFETF offers investors a convenient way to potentially outperform the general equity indices and in this manner can be better than investing in an individual stock.

Investment in mutual funds may be subject to front-end or back-end load / sales charges, whereas investors in JSMFETF are subject to brokerage charges only. The management fee is also negligible in comparison to equity mutual fund management fees. This adds to the investors cumulative return. Also note that unlike a mutual fund, the JSMFETF offers much greater ease of purchase and sale through the stock exchange. Transactions are instant unlike mutual fund sales and redemptions that take time to process. Unlike a traditional actively managed equity mutual fund, the JSMFETF also offers a smart strategy that is rules based and automatic and has been back tested to establish outperformance.

The momentum strategy seeks to outperform the general market and is therefore high beta. The JSMFETF can be more volatile than the broader equity indices.

JSMFETF is bought and sold in the stock market through a stock broker of the Stock Exchange. It can be bought with a very small amount. In the odd lot market, even one JSMFETF unit can be bought or sold, whereas in the regular market, the JSMFETF can be traded in a lot size of 500 units.

JSMFETF is subject to market forces and accordingly may rise or fall in value. Investment in the Fund is suitable for investors who have the ability to take the risks associated with financial market investments. Capital invested in the financial markets, in extreme circumstances, could substantially lose its value.

Resident person other than a company shall be entitled to a tax credit under the Income Tax Ordinance 2001, on purchase of new Units. Refer to your Tax Advisor for further information.

It’s up to 1.5% p.a

No, JSMFETF is not Shariah Compliant.

The JSMFETF seeks to track the JS Momentum Index and has therefore no dependence on the KSE 100.

There is no age restriction, any one above 18 years can invest in JSMFETF.

Like making any other investment decision, investors are advised to know the following before investing:

• Your own risk and return investment objectives.
• Investment objective and strategy of JSMFETF.
• Information on the index that the JSMFETF is tracking.
• Applicable fees and charges.

The JSMFETF trades on the Stock Exchange and the same tax restrictions apply as on other stocks.