Digital Mutual Funds are a general term for funds that allow you to pool your money with that of other investors and are managed by a team of investment professionals. The term may vary across countries, but digital mutual funds may also be referred to as collective investment schemes, unit trusts or simply as funds. The pooling of your money generally creates greater buying power so you are able to invest in a wider range of investments than possible for most individual investors.
Each investor in a fund owns units (or shares) which represent a part of a fund’s portfolio holdings. Digital Mutual Funds can be categorized by the type of assets they invest in (such as shares, bonds, cash or other securities). You can refer to the digital mutual fund’s prospectus and fact sheets to get a better understanding of their respective investment objectives and policy (for example, type and mix of investments) and past performance.
Can issue and redeem units at times specified to meet subscription or redemption requests made by investors. Generally, buying and selling of units take place directly between investors and the fund or its agents. The price per unit of an open-end fund will vary in proportion to the fund’s net asset value, and therefore reflect the fund’s performance.
These funds issue only a fixed number of units or shares, and do not issue new units or shares even as investor demand grows. Unit or share purchases take place in the secondary market, and prices are determined by investor demand. Units or shares of these funds are often traded at a premium or discount to the fund’s net asset value.
Digital Mutual funds charge various fees and it is best to refer to the fund’s prospectus or fact sheets to understand what you are being charged.
Management fee
Front End Load
Back End Load
Annual Fee
There are many types of digital mutual funds, but broadly speaking they can be divided into four main categories:
1. Equity (Stock) Funds
As the name suggests, Equity Funds consist mainly of stock investments and are the most common type of digital mutual funds. Often Equity Funds focus on a particular type of investment strategy, such as Growth, Value, Large Caps and Small Caps or themes such as Property, Energy and Healthcare. The funds can be invested globally, regionally or in single countries.
2. Bond (Fixed) Funds
Invest mainly in debt instruments including government bonds, corporate bonds or mortgage-backed securities. The return that a Bond Fund may have can vary depending on the type of bond. Typically, Bond Funds that invest in short-term bonds tend to be less volatile. Bond Funds that invest in corporate bonds generally do so to obtain higher yields, thus carrying greater risk.
3. Money Market Funds
Seek to maintain a stable net asset value by investing in the short-term, high-grade securities sold in the money market. These are generally the safest, most stable securities available, including Treasury bills, certificates of deposit and commercial paper.
4.Hybrid Funds
Invest in a mix of stocks and bonds and may also hold money market instruments which can vary proportionally over time or remain fixed. They may be further sub-divided into Balanced Funds, Asset Allocation Funds and Lifecycle Funds.
Investments in Investment Products are subject to market risks. Past performance should not be taken as a guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Please read the Terms & Conditions carefully to understand the investment policy and the risks involved. Bank Alfalah Limited is only the ‘Distributor’ of these investment in Pakistan. Bank Alfalah Limited for any opinion expressed herein or any liability for any consequences, financial or otherwise, arising from the subscription or acquisition of these products. Investors should make their own appraisal and consult their own financial, legal, taxation and other professional advisors prior to any subscriptions.
Key Fact Statement - English
Key Fact Statement - Urdu
Yes, you can open a digital account via Alfa App. The platform allows you to open your account, perform risk profiling and allows you to invest and redeem among other functions.
You can open Sahulat Sarmayakari Account or Sarmayakari Account digitally via Alfa App to invest in mutual fund.
Customer whose age is 18 years or above and have an existing BAFL account can open mutual fund account via Alfa App.
By simply filling the required details on Alfa App — no additional documents are required for opening a Sahulat Sarmayakari Account.
The Sahulat Sarmayakari Account is a basic investment account that provides digital access to low and moderate funds. It has a single transaction limit of Rs. 400,000/-, an annual investment limit of Rs. 800,000/.
The Sarmayakari Account is a full-fledge digital investment account with no maximum investment limits. The customer can invest in low, medium and high-risk funds. Customers will need to upload mandatory documents during the account opening process.
Mandatory documents include:
Valid CNIC/NICOP/Passport
Business/employment proof
Source of income
Source of fund
Digital Signature
In case of any grievances/complaints related to the fund, you can either lodge a complaint with Bank Alfalah Limited at 021 111 225 111 or visit any of Bank Alfalah’s branches or email us at contactus@bankalfalah.com and you will be informed of the resolution accordingly.
You can also either lodge a complaint with Alfalah Asset Management Limited at 021 111 090 090, or visit any of the Investment Centers or email at aaml.is@alfalahamc.com and you will be informed of the resolution accordingly.
If you are not satisfied with our response, you may contact:
Banking Mohtasib Pakistan: Karachi Secretariat, Banking Mohtasib Pakistan Secretariat, 5th Floor, Shaheen Complex, M R Kiyani Road, Karachi.
Telephone: +9221-99217334
Facsimile: +9221-99217375
Email: info@bankingmohtasib.gov.pk
*Terms & Conditions apply.
“Customers may register their complaint through SBP’s customer complaint management service ‘Sunwai’ (https://sunwai.sbp.org.pk/)”