National Fullerton Asset Management Chief Executive Officer Dr Amjad Waheed urged brokers to cater to investors' needs of low and medium risk investment rather than only concentrate on the high risk investment in shares market.
While giving a presentation at the Lahore Stock Exchange here on Tuesday, Dr Waheed said the mutual funds industry was growing rapidly yet it was behind the other markets like India and the United States. Investors and brokers also attended the meeting.
Pakistan's mutual funds industry size is just $2.61 billion out of the world market of $22 trillion. The mutual funds have a lot of potential to yield a good and risk free margin to investors and to brokers. Investing in funds is more lucrative than that of depositing in the banks whose return even could not cover the inflation, he added. About the funds scope in Pakistan, Dr Wajeed said, "Our mutual funds are just 2 percent of the GDP against 6 percent in India and 70 percent to GDP in USA.
Similarly, our banks' deposit is 6 percent to GDP, as compared to 13 percent of India and 150 percent in USA. The brokers all over the world guide their investors to invest in funds but not in Pakistan.
Many people do not want to invest in share market thus they must be guided to avail opportunity of investment in different kinds of products like mutual funds, private equity fund and also in real estate funds which may be introduced later."
Comparing dividend provided by various banks and the National Saving Organisation, he said the return on investment in funds is substantially greater. He stressed the need for creating awareness about the scope and potential of investment in funds among the investors.
He also briefed the participants about the financial growth of NAFA Multi Asset Fund, NAFA Cash Fund, NAFA Islamic Income Fund, NAFA Islamic Multi Asset Fund and NAFA Stock Fund. He also revealed that merger of PICIC and NIB Bank would soon take place.
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