Profile

The Monthly Income Plan enables investors to withdraw the profit earned by their investment in PIF on a monthly basis.

How it works

By opting for the MCB Funds Monthly Income Plan, the investment is automatically routed to the Pakistan Income Fund (PIF). Since PIF is a Fixed Income Fund, it would generate a regular stream of earnings with low probability of impairment in the value of capital. PIF has the potential to distribute a regular income (through encashment of the equivalent number of units), as against investment in MCB-PSM where the chances of regular earning is restricted due to the possible volatility in the stock market. Therefore, the Monthly Income Plan invests only in PIF by purchasing its units. The rate of return is not fixed and the investor receives a total of 90% of the total profit on a monthly basis, while 10% of the profit is retained in the investor’s account. This Plan can be started with a minimum investment of Rs 100,000.

In the Monthly Income Plan the size of the investment gradually increases as the unit price of the PIF rises. If, at the end of the month, the NAV price of PIF has increased the total value of investment from say Rs 100,000 to Rs.100,600, then units worth Rs. 540 would be encashed and credited to the investor’s bank account. Rs. 60 or 10% of the profit is retained in the capital to provide for withholding tax at the end of the financial year, in case the fund announces cash dividend.

Objective

This plan works well for those investors who need a regular stream of earnings while keeping their principal reasonably safe. Instead of waiting for a final annual dividend or redeeming the units to meet their requirement, the investors are allowed to cash out their share of the profits of the Fund on a monthly basis