 Mutual Fund;

“A mutual fund is a collective investment scheme, which specializes in investing a

pool of money collected from investors for the purpose of investing in securities such as
stocks, bonds, money market instruments and similar assets”
Mutual funds offer a way for a group of investors to effectively pool their money,
so they can invest in a wider variety of investment vehicles and take advantage of
professional money management through the purchase of one mutual fund share. Mutual
fund companies essentially collect the money from their investors, or shareholders, and
invest that pooled money into individual investment vehicles according to some risk
profile, money management philosophy, or financial goal. The mutual fund then passes
along the profits (and losses) of those investments to its shareholders. Today, more than $4
trillion are invested in mutual fund
A mutual fund is at its core a managed portfolio of stocks and/or bonds. mutual fund is a
company that brings together a large group of people and invests their money on their
behalf in this portfolio. Each investor owns shares of the mutual fund, which represent a
portion of its holdings.
Investors typically earn a return from a mutual fund in three ways:
1. Income is earned from dividends on stocks and interest on bonds held in
the fund’s portfolio. A fund pays out nearly all of the income it receives
over the year to fund owners in the form of a distribution. Funds often give
investors a choice either to receive a check for distributions or to reinvest
the earnings and get more shares
2. If the fund sells securities that have increased in price, the fund has a
capital gain. Most funds also pass on these gains to investors in a
distribution.
3. If fund holdings increase in price but are not sold by the fund manager, the
fund's shares increase in price. You can then sell your mutual fund shares
for a profit in the market.

The mutual fund industry is regulated by, the Securities and Exchange Commission
of Pakistan (SECP) which licenses each Asset Management Company in strict compliance
with the NBFC Rules, 2003
 History:
Mutual funds in Pakistan are registered and legally established in the form of a Trust,
under the Trust Act of 1882. The mutual fund industry is regulated by, the Securities and
Exchange Commission of Pakistan (SECP) which licenses each Asset Management Company in
strict compliance with the NBFC Rules, 2003