Question 1

Which mutual fund has the highest return in Pakistan?

Accepted Answer

Equity and commodity funds typically deliver the highest returns but carry higher risk. AHL Commodity Fund and Meezan Islamic Fund have historically shown strong 1-year returns. Past performance does not guarantee future results.

Question 2

What is NAV in mutual funds?

Accepted Answer

NAV (Net Asset Value) is the price per unit of a mutual fund, calculated by dividing the total value of the fund's assets minus liabilities by the total number of units outstanding.

Question 3

What is the minimum investment in Pakistani mutual funds?

Accepted Answer

Most mutual funds in Pakistan have a minimum investment of PKR 500–1,000. Money market funds like Meezan Cash Fund allow as little as PKR 100. Many can be invested in through mobile apps.

Question 4

Are Islamic mutual funds better than conventional funds?

Accepted Answer

Islamic mutual funds invest only in Shariah-compliant assets and avoid interest (riba). They are regulated by both SECP and a Shariah Supervisory Board. Performance is comparable to conventional funds.

Question 5

What is SIP in mutual funds?

Accepted Answer

SIP (Systematic Investment Plan) is a way to invest a fixed amount regularly (e.g., PKR 5,000/month) in a mutual fund. It reduces timing risk through rupee-cost averaging and builds wealth over time.

Pakistan Mutual Funds