When one invests in a mutual fund, he purchases
a certain number of units of the fund. The Fund Manager invests
the pool of funds in a carefully selected portfolio of investments.
The manager buys and sells those investments to maximize returns
for the investors within the investment guidelines outlined in the
prospectus.
The fund's value and the value of units can go up or down from day
to day. Some funds will fluctuate more than others and an investor
would like to consider this factor when he chooses a fund. The value
of a fund's units is updated daily and such information is available
in newspapers or websites.
Many factors influence the mutual fund performance, such as the
value of underlying investments, changes in interest rates and other
economic factors.
Mutual Funds, according to their structure, may be open-end or closed
end. To understand their meanings, please refer to
Investor
Glossary.
Mutual Funds, according to their investment strategy, may be of
different types. Common types of Funds offered in Pakistan include
Income Fund, Balanced Fund, Equity Fund, Fund of Funds, Asset Allocation
Fund and Shariah Compliant Fund. To understand their meanings, please
refer to
Investor
Glossary.
