The Concept of Mutual Funds

The concept is very simple, small investors invest their money into a common pool or fund and
hand over the investment decision to fund manager/portfolio manager. This is expected to have
several advantages for the small investors: no more searching for good buys or relying on the
neighborhood sub-broker for advice or even anxiously waiting for the allotment. All this is taken
care of by the cumulative bargaining power of the fund, which has trained professionals
managing it.
Everyday, the fund manager/portfolio manager counts up the value of all fund's holding, figures
out how many shares have been purchased by shareholders, and then calculates the Net Asset
Value (NAV) of the mutual fund, the price of a single share of the fund on that day. If you want
to buy shares, you just send the manager your money, and they will issue new shares for you.
If the fund manager is doing a good job, the NAV of the fund will usually get bigger, and your
shares will be worth more.
Types of Mutual Funds

There are two types of mutual funds, which are:

Open-end mutual funds.
Closed-end mutual funds.

Open-end Mutual Fund:

Open-end mutual funds are those where subscription and redemption of shares are allowed on a
continuous basis. The price at which the shares of open-end funds offered for subscription and
redemption is determined by the NAV after adjusting for any sales load or redemption fee.
Closed-end Mutual Fund:
Closed-end mutual funds are those where the shares are initially offered to the public and are
then traded in the secondary market. The trading usually occurs at a slight discount to the NAV.
Over a period of time, the mutual fund managers have developed a variety of investment
products to cater the requirement of investors, having different needs.
These include:
Growth
Balanced

 Income (Money Market)

Equity
Growth Funds:
The "growth funds" offer potential for appreciation in share value, while the current income may
be low. The fluctuation in share price may also be high. Such funds invest in stocks and have
tendency to outperform other funds and other modes of savings over a period of time.
Balanced Funds:
The growth and income funds or balanced funds, offer prospects of both moderate
appreciation in share value as well as current income. The fluctuation in share price may be low.
Such funds invest in stocks, corporate debts and Government paper.
Income Funds The bond fund or income funds offer good current income but very little
potential for growth. Such funds invest in government paper, bonds issued by municipal or local
bodies, corporate debts and in stocks of utility companies, offering regular return.
Equity fund:
The "Equity Fund" consists mainly of stock investments is the most common type of mutual
fund. Often equity funds focus investments on particular strategies and certain types of issuers.
The main objective for this fund is to participate fully in the growth of the economy.

Sources of Profit Generation:

A mutual fund can generate profits from three different sources, which are:
Dividend
Capital Gains
Appreciation of share price

Dividend:
Mutual funds generate income from dividends received from other joint stock companies whose
shares the fund holds. A mutual fund uses this dividend income to distribute dividend to its stock
holders.
Capital Gains:

As discussed earlier, the portfolio manager changes the portfolio of the fund with the passage of
time and also with the changes in the economic and business conditions. So due to the sale and
purchase of shares, the mutual fund generates capital from the sales/purchase of stocks. The
capital gain generated by the mutual fund is also used to pay dividends to the investors of the
fund.

Appreciation of Share Price:

Mutual funds also increases the wealth/investment of their shareholder through appreciation of
share price of the mutual fund. For example, if the subscription price of a mutual fund is
Rs.11.00, and after a period of seven months the price goes up to Rs. 18.00, thus the investor gets
a profit of Rs. 7.00 if he sells the mutual fund shares in the market.

Advantages of Mutual Funds

Mutual Funds substantially lower the investment risk of small investors through diversification
in which funds are spread out into various sectors, companies, securities as well as entirely
different markets. It is always the objective of a fund manager to maximize a fund's return for a
given level of risk, however the dangers of "over-diversification" are always prevalent which
would inevitably lead to reduced return on the portfolio.
Mutual Funds mobilize the saving of small investors and channel them into lucrative
investment opportunities. As a result, mutual funds add liquidity to the market. Moreover, given
that the funds are long term investment vehicles, they reduce market volatility by offering
support to scrip prices.
Mutual Funds provide smaller investors access to the whole market which individually would
be difficult to achieve.
The investors save a great deal in transaction cost given that he has access to a large number of
securities by purchasing a single share of the mutual fund.
The investors can pick and choose a mutual fund to match his or her particular needs.
Income is tax exempted.

Disadvantages of Mutual Funds

As such as there is no major disadvantage attached to the mutual funds. However, the possible
disadvantages could be:
Economic and Business Conditions:
As the business and economic conditions do not remain constant, the mutual fund may face some
sdifficulties in the future. Especially if the manager does not shuffle the investment portfolio

with the passage of time, or some other unforeseen disaster/event changes the investment
scenario.
Portfolio Managed by Managers:
Portfolio of a mutual fund is managed by portfolio managers due to which the investor has no
say in the affairs of a mutual fund.

Mutual Funds Companies working in Pakistan

ABL Cash Fund (ABLCSHA)

ABLCSHA:PA

Open-End Fund

ABL Government Securities Fund (ABLGOSF)

ABLGOSF:PA

Open-End Fund

ABL Government Securities Fund (ABLGOSA)

ABLGOSA:PA

Open-End Fund

ABL Income Fund (ABLINCM)

ABLINCM:PA

Open-End Fund

ABL Islamic Income Fund (ABLCASH)

ABLCASH:PA

Open-End Fund

ABL Islamic Stock Fund (ABLISST)

ABLISST:PA

Open-End Fund

ABL Stock Fund (ABLSTFD)

ABLSTFD:PA

Open-End Fund

AKD Aggressive Income Fund (AKDINCO)

AKDINCO:PA

Open-End Fund

AKD Cash Fund (AKDCASH)

AKDCASH:PA

Open-End Fund

AKD Index Tracker Fund (AKDITFA)

AKDITFA:PA

Open-End Fund

AKD Opportunity Fund (AKDOPRF)

AKDOPRF:PA

Open-End Fund

Al-Meezan Mutual Fund Ltd (AMMF)

AMMF:PA

Open-End Fund

Alfalah GHP Alpha Fund (ALFGHPA)

ALFGHPA:PA

Open-End Fund

Alfalah GHP Cash Fund (ALFGHPC)

ALFGHPC:PA

Open-End Fund

Alfalah GHP Income Multiplier Fund (ALFINMA)

ALFINMA:PA

Open-End Fund

Alfalah GHP Islamic Fund (ALFISLM)

ALFISLM:PA

Open-End Fund

Alfalah GHP Value Fund (ALFVALU)

ALFVALU:PA

Open-End Fund

Arif Habib Investment Management - Pakistan Income Fund (ARIFPIF)

ARIFPIF:PA

Open-End Fund

Arif Habib Investment Management - Pakistan Stock Market Fund (ARIFPSM)

ARIFPSM:PA

Open-End Fund

Arif Habib Investment Management - Pakistan Strategic Allocation Fund (PSAF)

PSAF:PA

Open-End Fund

Arif Habib Investment Management - Pakistan Cash Management Fund (PKCASHF)

PKCASHF:PA

Open-End Fund

Arif Habib Investment Management - Pakistan Premier Fund (PPFL)

PPFL:PA

Open-End Fund

Perpetual (ARIFMSP)

ARIFMSP:PA

Open-End Fund

Arif Habib Investment Management - Pakistan Capital Market Fund (ARIFPCM)

ARIFPCM:PA

Open-End Fund

Askari Asset Allocation Fund (ASKAAFB)

ASKAAFB:PA

Open-End Fund

Askari Asset Allocation Fund (ASKAAFC)

ASKAAFC:PA

Open-End Fund

Askari Equity Fund (ASKEQTY)

ASKEQTY:PA

Open-End Fund

Askari High Yield Scheme (ASKINCO)

ASKINCO:PA

Open-End Fund

Askari Islamic Asset Allocation Fund (ASKISAB)

ASKISAB:PA

Open-End Fund

Askari Islamic Asset Allocation Fund (ASKISAC)

ASKISAC:PA

Open-End Fund

Askari Islamic Income Fund (ASKISIB)

ASKISIB:PA

Open-End Fund

Askari Islamic Income Fund (ASKISIC)

ASKISIC:PA

Open-End Fund

Askari Sovereign Cash Fund (ASKSOVC)

ASKSOVC:PA

Open-End Fund

Askari Sovereign Yield Enhancer Fund (ASKSOYE)

ASKSOYE:PA

Open-End Fund

Atlas Gold Fund (ATLGOLD)

ATLGOLD:PA

Open-End Fund

Atlas Income Fund (ATLINCF)

ATLINCF:PA

Open-End Fund

Atlas Islamic Income Fund (ATISINC)

ATISINC:PA

Open-End Fund

Atlas Islamic Stock Fund (ATLISLM)

ATLISLM:PA

Open-End Fund

Atlas Money Market Fund/Pakistan (ATLMMKT)

ATLMMKT:PA

Open-End Fund

Atlas Pension Islamic Fund - Debt Sub-Fund (APIFDBT)

APIFDBT:PA

Open-End Fund

Atlas Pension Islamic Fund - Equity Sub-Fund (APIFEQY)

APIFEQY:PA

Open-End Fund

Arif Habib Investment Management-MetroBank-Pakistan Sovereign Fund-

Atlas Pension Islamic Fund - Money Market Sub-Fund (APIFMMK)

APIFMMK:PA

Open-End Fund

Atlas Stock Market Fund (ATLSTMF)

ATLSTMF:PA

Open-End Fund

BMA Chundrigar Road Savings Fund (BMAROAD)

BMAROAD:PA

Open-End Fund

BMA Empress Cash Fund (BMAEMPC)

BMAEMPC:PA

Open-End Fund

Crosby Dragon Fund (CRODRAG)

CRODRAG:PA

Open-End Fund

Faysal Asset Allocation Fund (FAYSALA)

FAYSALA:PA

Open-End Fund

Faysal Balanced Growth Fund (FAYBALG)

FAYBALG:PA

Open-End Fund

Faysal Financial Sector Opportunity Fund (FAYFSOF)

FAYFSOF:PA

Open-End Fund

Faysal Income & Growth Fund (FAYINGR)

FAYINGR:PA

Open-End Fund

Faysal Islamic Savings Growth Fund (FAYISSG)

FAYISSG:PA

Open-End Fund

Faysal Money Market Fund (FAYMMKT)

FAYMMKT:PA

Open-End Fund

Faysal Savings Growth Fund - A (FAYSAVA)

FAYSAVA:PA

Open-End Fund

First Capital Mutual Fund Ltd/FUND (CPMFI)

CPMFI:PA

Open-End Fund

First Habib Cash Fund (FIRHABC)

FIRHABC:PA

Open-End Fund

First Habib Islamic Balanced Fund (FHISBAL)

FHISBAL:PA

Open-End Fund

Golden Arrow Selected Stock Fund (GASF)

GASF:PA

Closed-End Fund

Habib Asset Management - First Habib Income Fund (HABFINC)

HABFINC:PA

Open-End Fund

Habib Asset Management - First Habib Stock Fund (HABFSTK)

HABFSTK:PA

Open-End Fund

HBL Income Fund (HBLINCM)

HBLINCM:PA

Open-End Fund

HBL Islamic Money Market Fund (HBLIMMK)

HBLIMMK:PA

Open-End Fund

HBL Islamic Stock Fund (HBLISST)

HBLISST:PA

Open-End Fund

HBL Money Market Fund (HBMMMKT)

HBMMMKT:PA

Open-End Fund

HBL Multi-Asset Fund (HBLMTIA)

HBLMTIA:PA

Open-End Fund

HBL Stock Fund - B (HBLSTOK)

HBLSTOK:PA

Open-End Fund

IGI Aggressive Income Fund (POBOPAP)

POBOPAP:PA

Open-End Fund

IGI Income Fund - A (IGINCMA)

IGINCMA:PA

Open-End Fund

IGI Islamic Income Fund (IGISLIN)

IGISLIN:PA

Open-End Fund

IGI Money Market Fund (IGIMMKT)

IGIMMKT:PA

Open-End Fund

IGI Stock Fund - B (IGISTKB)

IGISTKB:PA

Open-End Fund

JS Aggressive Asset Allocation Fund (ABAAGRE)

ABAAGRE:PA

Open-End Fund

JS Cash Fund (JSCASHF)

JSCASHF:PA

Open-End Fund

JS Fund of Funds (ABAMFOF)

ABAMFOF:PA

Fund of Funds

JS Growth Fund - B (JSGF)

JSGF:PA

Open-End Fund

JS Income Fund (ABAUTIF)

ABAUTIF:PA

Open-End Fund

JS Islamic Fund (ABAISLM)

ABAISLM:PA

Open-End Fund

JS Islamic Government Securities Fund (JSISLGS)

JSISLGS:PA

Open-End Fund

JS Islamic Pension Savings Fund - Money Market (JSIMMKT)

JSIMMKT:PA

Open-End Fund

JS Islamic Pension Savings Fund - Debt (JSIPDBT)

JSIPDBT:PA

Open-End Fund

JS Islamic Pension Savings Fund - Equity (JSIPEQY)

JSIPEQY:PA

Open-End Fund

JS KSE 30 Index Fund (ABAUA30)

ABAUA30:PA

Open-End Fund

JS Value Fund Ltd (JSVFL)

JSVFL:PA

Open-End Fund

JS Value Fund Ltd - B (JSVALFB)

JSVALFB:PA

Open-End Fund

KASB Asset Allocation Fund (KASBBAL)

KASBBAL:PA

Open-End Fund

KASB Cash Fund (KASCASH)

KASCASH:PA

Open-End Fund

KASB Income Opportunity Fund (KASLIQL)

KASLIQL:PA

Open-End Fund

KASB Income Opportunity Fund (KASLIQU)

KASLIQU:PA

Open-End Fund

KASB Islamic Income Opportunity Fund (KASISIN)

KASISIN:PA

Open-End Fund

KSE Meezan Index Fund (KSEMIND)

KSEMIND:PA

Open-End Fund

Lakson Asset Allocation Developed Markets Fund (LKAADMF)

LKAADMF:PA

Open-End Fund

Lakson Asset Allocation Emerging Markets Fund (LKAAEMF)

LKAAEMF:PA

Open-End Fund

Lakson Asset Allocation Global Commodities Fund (LKAAGCF)

LKAAGCF:PA

Open-End Fund

Lakson Equity Fund (LAKSEQT)

LAKSEQT:PA

Open-End Fund

Lakson Income Fund (LAKSINC)

LAKSINC:PA

Open-End Fund

Lakson Money Market Fund (LAKSMMF)

LAKSMMF:PA

Open-End Fund

MCB Cash Management Optimizer Fund (MCBCSMO)

MCBCSMO:PA

Open-End Fund

MCB Dynamic Allocation Fund (MCBDALL)

MCBDALL:PA

Open-End Fund

MCB Dynamic Cash Fund (MCBCASH)

MCBCASH:PA

Open-End Fund

MCB Dynamic Stock Fund (MCBSTOK)

MCBSTOK:PA

Open-End Fund

MCB Islamic Income Fund - A (MCBISIA)

MCBISIA:PA

Open-End Fund

MCB Islamic Income Fund - B (MCBISIB)

MCBISIB:PA

Open-End Fund

Meezan Capital Protected Fund II (MEEZCAP)

MEEZCAP:PA

Open-End Fund

Meezan Cash Fund (MEEZCSH)

MEEZCSH:PA

Open-End Fund

Meezan Financial Planning Fund of Funds - Aggressive (MFPFOFA)

MFPFOFA:PA

Fund of Funds

Meezan Financial Planning Fund of Funds - Conservative (MFPFOFC)

MFPFOFC:PA

Fund of Funds

Meezan Financial Planning Fund of Funds - Moderate (MFPFOFM)

MFPFOFM:PA

Fund of Funds

Meezan Islamic Fund (MEZISLM)

MEZISLM:PA

Open-End Fund

Meezan Islamic Income Fund - B (MZMIIFB)

MZMIIFB:PA

Open-End Fund

Meezan Islamic Income Fund - C (MZMIIFC)

MZMIIFC:PA

Open-End Fund

Meezan Sovereign Fund (MEEZSOV)

MEEZSOV:PA

Open-End Fund

Meezan Tahaffuz Pension Fund - Debt (MEETPDT)

MEETPDT:PA

Open-End Fund

Meezan Tahaffuz Pension Fund - Equity (MEETPEQ)

MEETPEQ:PA

Open-End Fund

Meezan Tahaffuz Pension Fund - Money Market (MEETPMM)

MEETPMM:PA

Open-End Fund

NAFA Asset Allocation Fund (NAFAASA)

NAFAASA:PA

Open-End Fund

NAFA Financial Sector Income Fund (NAFAFSI)

NAFAFSI:PA

Open-End Fund

NAFA Government Securities Liquid Fund (NAFAGSL)

NAFAGSL:PA

Open-End Fund

NAFA Income Fund (NAFANIF)

NAFANIF:PA

Open-End Fund

NAFA Income Opportunity (NAFCASH)

NAFCASH:PA

Open-End Fund

NAFA Islamic Aggressive Income Fund (NAFISLI)

NAFISLI:PA

Open-End Fund

NAFA Islamic Multi Asset Fund (NAFISMA)

NAFISMA:PA

Open-End Fund

NAFA Money Market Fund (NAFAMMF)

NAFAMMF:PA

Open-End Fund

NAFA Multi Asset Fund (NAFMULT)

NAFMULT:PA

Open-End Fund

NAFA Riba Free Savings Fund (NAFARFS)

NAFARFS:PA

Open-End Fund

NAFA Savings Plus Fund (NAFASAV)

NAFASAV:PA

Open-End Fund

NAFA Stock Fund (NAFSTOK)

NAFSTOK:PA

Open-End Fund

Namco Balanced Fund (NBF)

NBF:PA

Closed-End Fund

NAMCO Income Fund (NAMCOIB)

NAMCOIB:PA

Open-End Fund

National Investment Trust-UNIT Fund (NITRUST)

NITRUST:PA

Open-End Fund

National Investment Trust - Income Fund - RS (NITIFRS)

NITIFRS:PA

Open-End Fund

NIT Government Bond Fund (NITGLOB)

NITGLOB:PA

Open-End Fund

Pak Oman Advantage Asset Allocation Fund (PAKOAAA)

PAKOAAA:PA

Open-End Fund

Pak Oman Advantage Fund (POAF)

POAF:PA

Closed-End Fund

Pak Oman Advantage Islamic Income Fund (PAKOAII)

PAKOAII:PA

Open-End Fund

Pak Oman Government Securities Fund (POGOVMS)

POGOVMS:PA

Open-End Fund

Pak Oman Islamic Asset Allocation Fund (PAKOAIS)

PAKOAIS:PA

Open-End Fund

Pakistan Income Enhancement Fund (PAKIENH)

PAKIENH:PA

Open-End Fund

Pakistan International Element Islamic Asset Allocation Fund (ARIFISL)

ARIFISL:PA

Open-End Fund

Pakistan Islamic Pension Fund - Debt (PAKIPDB)

PAKIPDB:PA

Open-End Fund

Pakistan Islamic Pension Fund - Equity (PAKIPEQ)

PAKIPEQ:PA

Open-End Fund

Pakistan Islamic Pension Fund - Money Market (PAKIPMM)

PAKIPMM:PA

Open-End Fund

PICIC Cash Fund - C (PICCSFC)

PICCSFC:PA

Open-End Fund

PICIC Cash Fund - D (PICCSFD)

PICCSFD:PA

Open-End Fund

PICIC Energy Fund (PEF)

PEF:PA

Open-End Fund

PICIC Growth Fund (PGF)

PGF:PA

Closed-End Fund

PICIC Income Fund (PICIINC)

PICIINC:PA

Open-End Fund

PICIC Investment Fund (PIF)

PIF:PA

Closed-End Fund

PICIC Stock Fund (PICICST)

PICICST:PA

Open-End Fund

Primus Cash Fund (PRIMCSH)

PRIMCSH:PA

Open-End Fund

Primus Daily Reserve Fund (PRIMDRF)

PRIMDRF:PA

Open-End Fund

Safeway Mutual Fund Ltd (SFWF)

SFWF:PA

Open-End Fund

Tri-Star Mutiual Fund Ltd (TSMF)

TSMF:PA

Closed-End Fund

UBL Financial Sector Bond Fund (UBLFISB)

UBLFISB:PA

Open-End Fund

UBL Gold Fund (UBLGOLD)

UBLGOLD:PA

Open-End Fund

UBL Government Securities Fund (UBLGVTS)

UBLGVTS:PA

Open-End Fund

UBL Islamic Cash Fund (UBLISCS)

UBLISCS:PA

Open-End Fund

UBL Islamic Principal Preservation Fund (UBLIPPI)

UBLIPPI:PA

Open-End Fund

UBL Islamic Retirement Savings Fund - Money Market (UBLRMMK)

UBLRMMK:PA

Open-End Fund

UBL Islamic Retirement Savings Fund - Debt (UBLRDBT)

UBLRDBT:PA

Open-End Fund

UBL Islamic Retirement Savings Fund - Equity (UBLREQY)

UBLREQY:PA

Open-End Fund

UBL Islamic Sovereign Fund (UBLISSF)

UBLISSF:PA

Open-End Fund

UBL Liquidity Plus Fund - C RETAIL (UBLLIQC)

UBLLIQC:PA

Open-End Fund

UBL Principal Protected Fund I (UBLPPFI)

UBLPPFI:PA

Fund of Funds

UBL Principal Protected Fund II (UBLPPF2)

UBLPPF2:PA

Open-End Fund

UBL Savings Income Fund (UBLSAIN)

UBLSAIN:PA

Open-End Fund

UBL Shariah Stock Fund (UBLISLM)

UBLISLM:PA

Open-End Fund

Unit Trust of Pakistan (ABAUTPA)

ABAUTPA:PA

Open-End Fund

United Growth and Income Fund - GROWTH (UBLGROW)

UBLGROW:PA

Open-End Fund

United Growth and Income Fund - INCOME (UBLINCO)

UBLINCO:PA

Open-End Fund

United Islamic Income Fund - GROWTH UNITS (UBLISIG)

UBLISIG:PA

Open-End Fund

United Islamic Income Fund - INCOME UNITS (UBLISII)

UBLISII:PA

Open-End Fund

United Stock Advantage Fund (UBLADVN)

UBLADVN:PA

Open-End Fund

National Investment Trust

Introduction
HISTORY:
NITL was incorporated as an unquoted public limited company in 1962. The principal activity of
the company is to manage NI(U)T, an open end mutual fund. The fund is the largest open-end
mutual fund in Pakistan, with investments in approximately 600 of the 706 listed Pakistani
Companies. NIT's portfolio has over 90 percent correlation with the Karachi Stock Exchange all
Share Index and is as such the nearest proxy to an Index fund in Pakistan. NIT is valued at
approximately Rs. 26 billion. The fund has a 93% weighting in equities and 7% weighting in
fixed income securities. NIT's objective is to provide its Unit-holders with a balance between
their regular income needs and long-term capital appreciation. NITL has approximately 62,000
unit holders and over 19 branches and 2 booths across Pakistan.
NI(U)T's unique attraction is that it provides investors with a one window entry to Pakistan's

equity markets which at times can be illiquid and volatile. Pakistan, like most developing
markets, has only a handful of stocks with the market capitalization and liquidity which makes
them feasible additions to an international investment portfolio. However, these stocks are not
representative of the economy as a whole and ignore the usual engine of growth for developing
economies- the middle to small sized companies which can grow at multiples of, rather than
percentage points over, last year's performance. Identifying these companies is hard enough, but
even if one could identify them, trading in their shares is likely to be so illiquid as to make
adding them to your portfolio a considerable challenge.
In this environment, NI(U)T offers an unparalleled avenue for investing in corporate Pakistan:

Investments in 600 out of a total of 706 listed companies .

Track record of regular dividend payments.

The portfolio accounts for nearly 4 % of the stock market and nearly 80 % of all
domestic mutual funds.

Offers investors ready and easy access to Pakistan's capital market.

Compounding this lack of ready access is the fact that there are only a handful of offshore funds
dedicated to investing in Pakistan. Additionally, given their size they also do not provide the
investor with a wide enough exposure to the currently un-fancied, but potentially most lucrative,
medium sized and smaller companies. The fund has also significant strategic holdings in some of
Pakistan's best-managed companies and in major privatization transactions e.g. Pakistan State
Oil, Sui Northern, Sui Southern, Karachi Electric Supply Corporation, Pakistan Tele
Communication Limited etc. These companies comprise the backbone of Pakistan's economy.
In 1998, NITL embarked on a major restructuring program, which included induction of senior
professional management and modern asset management techniques. The other major step taken
by the company includes its proactive role in corporate governance. Each investment decision is
made within guidelines provided by NITL's investment committee. The objective of the team management approach is to safeguard the fund from over reliance on any individual and to
ensure transparency and rigorous evaluation of investment decisions.
'NIT mainly invests in listed equities. It suffered from low unit price in the past due to persistent
bearish sentiments prevailing in equities market. However, during these years efforts were made
for internal restructuring. NIT nominees played an active and effective role on the boards of
directors of those companies wherever the Fund had made substantial investment," said
Mehdi.
The return from investment in stock market comprise of two components 1) capital gain/loss
resulting from appreciation/drop in stock price and 2) dividend paid by companies to their

shareholders. NIT projects a 19 per cent return to investors investing in the stock market either
directly or by investing in NIT Units for the long-term (more than 5 years).
Mission Statement: Our Core Values
We are active and resourceful in developing proactive investment strategies for our shareholders.
We are generous with our skills, tapping our collective initiative and creativity to provide
financial solutions.
We are committed to understanding our shareholders' needs to generate the potential for the most
profitable returns. We believe honest communications and respect go far in creating long-term,
trusting relationships.
We are confident in our abilities, proud of what we do. It's the kind of certainty born of
experience, training and knowledge; the kind that allows us to take calculated risks and reap the
many results.
NIT Objective
The core objective of NIT is to maximize returns for Unit holders, provide a regular stream of
current income through dividends, while long term growth is achieved by diversified portfolio
management and investments into growth and high yielding securities.
National Investment Trust Limited
The National Investment Trust Limited (NITL) is the first Asset Management Company of
Pakistan, formed in 1962, had Funds under management of Rs. 81 billion, with
approximately 55,109 unit holders as on June 30, 2013. NIT's distribution network comprises
of 23 branches, various Authorized bank branches all over Pakistan.

AGENT NETWORK
MULTAN
Branch Name

Address

"MAIN BRANCH
NATIONAL BANK
KUTCHERY ROAD"
OF PAKISTAN
(MULTAN)
HABIB BANK
LIMITED

"MAIN BRANCH
HUSSAIN AGAHI ROAD"
(MULTAN)

Phone No.

Fax No.

Email

MCB BANK
LIMITED

HUSSAIN AGAHI ROAD

(MULTAN)

UNITED BANK
LIMITED

HUSSAIN AGAHI ROAD

(MULTAN)

UNITED BANK
LIMITED

CANTT. BRANCH
(MULTAN)

Shareholders of National Investment Trust Limited:

The GOP presently owns 8.33% of NITL's shares directly and 50% shares indirectly through
government controlled entities. 8.33% shares is owned by each PICIC and MCB while 25% of
NITL shares are held by three industrialists in equal proportions. The following is a list of
NITL's shareholders.
1. National Bank of Pakistan.
2. Habib Bank Limited
3.United Bank Limited
4. Muslim Commercial Bank
5. Pakistan Industrial Credit & Investment Corporation
6. Industrial Development Bank of Pakistan
7. Investment Corporation of Pakistan
8. Pakistan Insurance Corporation
9. Government of Pakistan
10. Seat held by late Mr.Ahmed Dawood is vacant
11. Mr. Abdul Hamid Adamjee
12. Mian Tajammal Husain

About NIT Unit:

NIT Units are issued in the name of the investor against the Investment. Units are issued in the
form of physical Unit certificates, which are available in various denominations. NIT Units can
be purchased/redeemed from NIT Branch's or authorized banks nationwide and Arab Emirates
Investment Bank (AEIB) in Dubai(UAE), under forward day pricing system , except during
suspension period of Sale and Repurchase or book closure .
To open an account with NIT, simply walk into any of NIT's authorized branch and the
application form. the i.e., NIT-A, deposit cash/cheque*/pay order/demand draft and your account
will be opened immediately. The minimum amount of investment is Rs.5,000 only.

Profile of Investment Manager

National Investment Trust Ltd. (NITL) is the first Asset Management Company of Pakistan,
formed in 1962.NITL manages the largest fund in the country i.e. National Investment (Unit)
Trust with approximately Rs. 84 Billion assets under management (39.43 billion for LOC and
44.35 billion for Non-LOC funds) with 19 NIT branches spread across the country. The Board of
Directors of NITL representing shareholders are mainly from leading financial institutions in
addition to a representative of Govt. of Pakistan. The company has been assigned an asset
manager rating of "AM2-" by Pakistan Credit Rating Agency (PACRA), which denotes strong
capacity to manage the risks inherent in asset management and the asset manager meets high
investment management industry standards and benchmarks.

Fund Performance Review:

The month of May proved to be one of the worst performing months for Pakistan's stock market
where KSE-100 index received a heavy battering of 19.80% by falling from the index level of
15,121 to 12,131 points primarily due the current political situation, weak economic indicators
and apprehensions regarding the budgetary measures which eroded the confidence of the
investors. Downgrading of Pakistan's sovereign ratings by S&P and Moody's further dampened
the sentiments of the market. The market witnessed a major plunge in the second half of the
month when SBP came with the tight monetary measures by increasing the Discount Rate by
150bps to 12%, CRR and SLR by 100bps both to 9% and 19% respectively. The SBP also
directed the commercial banks to offer minimum of 5% return on PLS accounts.
However during this difficult time NIT acted prudently to manage the portfolio. The NAV
of your Fund dropped by 16% in the month and outperformed the benchmark KSE-100 index by
4% which went down by 19.80%. During the year (July 07 to May 08) KSE-100 index declined
by 11.92 % whereas NAV of your Fund went down by 6.25% showing a resilient out
performance of 5.67%.

Going forward we are hopeful that market may witness some recovery once the political
uncertainty comes to an end and some improvement is seen on the economic front after the
forthcoming budget. Your Fund Manager will continue to optimize the portfolio through
investing in those stocks where the valuations are reasonably attractive with a long term view.
Why invest through NIT?
a) Professional Management
To modernize and better manage its affairs, the Management Company has hired a group of
professionals including MBAs, Chartered Accountants and a Doctorate in Finance (to head Asset
Management). This will enable NIT to make financial-research driven asset allocation and
selection decision to better manages your money and keeps control over its assets and liabilities.
b) Diversification
Nit offers the diversification advantage being invested in 630 companies so that you avoid
putting all your eggs in one basket. Due to NIT's large size, NIT gets better rates than an ordinary
individual in brokerage.
c) Convenience
NIT makes investing simple, accessible and affordable.
Why Investing through NIT is preferable
The two main options to invest in financial assets are equity (stock market investment) and debt
(bank deposits or government saving schemes). Investing in stock market carries more risk;
however, it is also more rewarding over the long run.
Fact Sheet
Fund Size
Rs.101 Billion (As of 30th June 2007)
Listing
Karachi Stock Exchange
Custodian & Trustee
National Bank of Pakistan
Type
Open-End Mutual Fund
Asset Allocation
Primarily Stock Market
Front-End Load
2.5%
Back-End Load
1%
Management Fee
1%
Minimum Subscription
Rs.5,000
Investment Objective

Income generation, Capital Preservation and Growth

FINANCIAL ANALYSIS
Particulars

Jun-99

Jun-00

Jun-01

Jun-01

Mar-03

Share Capital

31.7

31.7

31.7

31.7

31.7

General Reserve

100.0

145.0

163.0

163.0

163.0

Shareholders Equity

133.6

182.0

196.5

215.0

315.4

Operating Fixed Assets

57.4

51.1

46.0

41.8

38.9

Long Term Investment

38.4

38.4

63.2

61.4

81.2

Gross Income

133.9

170.1

127.0

161.2

207.7

Profit/(Loss)before taxation

36.4

77.0

50.8

65.2

143.2

Value of funds under

management(NI(U)T)

13,555.0

18,648.4

16,062.
3

17,414.1

25,584.4

NAV/Unit (Ex-Div)

7.2

10.7

9.2

10.8

17.2

NI(U) T
The National Investment Unit Trust (NIUT) is the Pakistans largest and oldest Mutual
Fund. As on June 30, 2013, NIUT had funds under management of around Rs. 47.297
billion invested in over 388 listed companies and had approximately 52,007 unit
holders. NITL's distribution network comprises of 23 NIT branches, various
Authorized bank branches all over Pakistan. The Trust constituted under the Trust
Deed dated 12th November 1962, executed between National Investment Trust Ltd
(NITL) as Management Company and National Bank of Pakistan as Trustee.

Investment objective & strategy

The core objective of NIT is to maximize returns for Unit holders, provide a regular stream of
current income through dividends, while long term growth is achieved by the management of
diversified portfolio and investments into growth and high yielding equity securities.
It is an Open End Equity Fund and may invest in stocks listed on any stock exchange in Pakistan.

Objective

The objective of "NIT IF" is to generate competitive stream of return with moderate level of risk
for its unit holders, by investing primarily in portfolio of fixed income securities with weighted
average time to maturity not exceeding four (4) years.

In order to achieve its primary objective of generating competitive return for its unit holders, NIT
IF would substantially invest in a diversified portfolio comprising of high quality debt securities.

The fund shall at all time maintain a minimum of 25% of net assets in the form of cash & near
cash instruments, whereas, the fund can take exposure of up to 75% of net assets in high quality
debt securities.

Performance

Performance Reports will be provided on periodical basis (as applicable) in the following areas:

Risk disclosure

All investments in mutual funds are subject to market risks. The NAV of units may go up or
down based on the market conditions. The investors are advised in their own interest to read the
contents of the offering document in particular the investment policy, risk disclosure, disclaimers
and warnings mentioned in clauses 2.2, 2.7, 2.9, 9.3 and 11 respectively, before making any
investment decision.

NT SEF

Introduction

National Investment Trust Limited has launched

NIT State Enterprise Fund on Jan 13, 2009. NIT
SEF was constituted under the trust deed executed
between National Investment Trust Limited as
Management Company and Central Depository
Company (CDC) of Pakistan as Trustee.


The total size of the Fund is Rs. 20.829 billion,
Invested in the following eight eligible stocks backed
by government guarantee.

1. Oil & Gas Development Company Limited.

2. Pakistan Petroleum Products.

3. Kot Addu Power Company Limited.