Faysal Asset Management Ltd has offered 100 percent discount on upfront sales load for its flagship product, Faysal Balanced Growth Fund (FBGF). This was announced at a press conference. The offer is valid on all units of FBGF purchased during December 2004, provided they are held till March 31, 2005.
Aijaz Rahim, Director at FAML, said that FAM expects to attract more funds as it is not bounded only for stocks, the money market people can also invest in the fund. He said that since there is little opportunity to invest in this kind of funds, more investors would join it.
The investors would take positions in the Balanced Fund as the investment strategy rotates following the movement in equity prices. The blend of the Fund ran from 60 percent equity to 40 percent investment in money market operations while sometimes ratio turns to 70 percent to 30 percent in both avenues, he added.
"We strongly believe in Pakistan's economic recovery and feel this is the best time to promote an investment culture in this society," said Aijaz.
The savings of this country need to be efficiently utilised within the capital markets framework and burgeoning mutual funds industry is a desired way to do it, he said.
FBGG, like many mutual funds, usually applies at 2.1 percent sales load when units are purchased. This charge is being waived throughout December 2004.
He explained that the waiver of 2.1 percent simply means that investors would get the edge of this amount by buying Balanced Fund having an Net Asset Value of 103.20 rupees as per unit as per Tuesday's closing. "We hope that the NAV for Wednesday's closing would be around 104 rupees", he said.
FBGF is a Rs 1.89 billion open-ended fund that is managed by Faysal Asset Management Limited. FAML is owned by Faysal Bank Ltd, AKD Securities Ltd, and Islamic Investment Company of the Gulf.
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