Degree
Master of Science in Islamic Banking & Finance
Department
Department of Finance
Faculty/ School
Faculty of Business Administration (FBA)
Date of Submission
Spring 2021
Supervisor
Haroon Tabreze, Faculty Member, Adjunct Faculty & Chairperson - Accounting Law, Department of Accounting & Law, Institute of Business Administration, Karachi
Keywords
AMC - Asset Management Company, AUM - Asset Under Management, SECP - Securities and Exchange Commission of Pakistan, MUFAP - Mutual Funds Association of Pakistan, KSE - Karachi Stock Exchange, KMI - KSE Meezan Index, KIBOR - Karachi interbank offered rate
Abstract
In Pakistan, Mutual Funds are becoming one of the preferred investments for those investors who don’t have expertise to efficiently manage their wealth and reduce tax liabilities associated with their profit. Businesses invest in mutual funds to reduce their corporate tax liability and individual investors invest in mutual funds to maintain value of money against inflation with tax rebate benefit.
Mutual Funds play vital role in the economic development of a country. Its active involvement can be witnessed through the dominant presence in the fixed income as well as overall capital markets. Mutual funds are very active in the stock markets by way of ensuring stability as a supplier of large funds through steady absorption of floating stocks.
Mutual Fund industry was started with the setting up of National Investment Unit Trust in 1962 by the Government of Pakistan. It monopolized the market till 1983 after which, considerable growth was seen by entry of many private sector institutions in this industry. Currently, there are 20 Asset management companies in Pakistan with more than 346 schemes; including dedicated and pension funds, which are working in mobilizing the funds of investors for investment purposes.
By increasing awareness and gaining investor’s confidence, Mutual Funds have long played an important role in the performance of capital markets. This helped gradually counter the critics of market depth, as new entrants aided diversity to investment outlook. The aim of this study is to examine the factors affecting investment in shariah compliant mutual funds in Pakistan. These factors examine the relationship between risk and the return, impact of change in interest rate and inflation rate and change in cash flows on asset allocation, overall performance and growth of the fund.
Document Type
Restricted Access
Recommended Citation
Shujauddin, N. A. (2021). Factors affecting investment in Shariah compliant mutual funds (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/etd-ms-ibf/15
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