Ask Fund Manager


A Mutual Fund is a collective investment scheme, which specializes in investing a pool of money collected from investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

Mutual Funds are operated by Asset Management Companies (AMCs) which exists in the form of a public limited company registered under Companies Act 2017. The AMC launches new funds through the establishment of a Trust Deed, entered between the Asset Management Company and the Trustee, with due approval from the SECP under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the “Rules”). The Trustee performs the functions of the custodian of the assets of the Fund. The trustee ensures that the Fund Manager takes the investment decisions within the defined investment policy of the mutual fund. Under Pakistan law, banks and central depository companies, approved by the SECP, can act as trustee. At present Central Depository Company of Pakistan (CDC) acts as a Trustee of most of the funds of the industry.

The Securities & Exchange Commission of Pakistan (SECP) is the regulator of mutual funds industry and is very stringent in issuing licenses to fund management companies, especially in the case of Collective Investment Scheme (CIS). The SECP also carries out continuous monitoring of mutual funds through reports that the mutual funds have to file with the SECP on a regular basis. In addition, SECP conducts on-site inspections of the AMCs.

Mutual funds make saving and investing simple, accessible, and affordable. The advantages of Mutual Funds include the following:-
– Accessibility
Mutual Funds units are easy to buy.
– Liquidity
Mutual Fund unit holders can convert their units into cash on any working day. They will promptly receive the current value of their investment. Investors do not have to find a buyer; the fund buys back (redeems) the units.
– Diversification
By investing the pool of unit holders’ money across number of securities, a mutual fund diversifies its holdings. A diversified portfolio reduces the investors’ risk. It would be difficult for an average investor to buy varied securities to achieve the same level of diversification as is available with investment in mutual fund.
– Professional Management
The Asset Management Company evaluates all opportunities that arise in the market, carefully examines them and then takes an informed decision for investment. Whereas it is not an easy task for an individual and even for corporate company if investing is not their core business.

These are mutual funds which continually create new units or redeem issued units on demand. They are also called Unit Trusts. The Unit holders buy the Units of the fund or may redeem them on a continuous basis at the prevailing Net Asset Value (NAV). These units can be purchased and redeemed through Management Company which announces offer and redemption prices daily.
These funds have a fixed number of shares like a public company and are floated through an IPO. Once issued, they can be bought and sold at the market rates in secondary market (Stock Exchange). The market rate is announced daily by the stock exchange

How do Mutual Funds determine their Unit Price?
A fund’s Net Asset Value (NAV) represents the price per unit. The NAV is equal to the market worth of assets held in the portfolio of a Fund, minus liabilities, divided by the number of units outstanding.
NAV = Current Market Value of all the Assets / Liabilities Total Number of Units Outstanding
In order to determine the sale price of the unit sales load is added to the NAV. In case there is no sales load the NAV will be the sale price as well as the redemption price. The sale and redemption price is declared on a daily basis by the Funds and can be viewed on their websites.

Yes they can, by simply contacting MCBAH via email or our toll-free number.

Individuals: The individual investor is required to provide the following at the designated sales points of the Asset Management Company
– Copy of CNIC
– Application / Account opening Form
– Purchase of Units Form
– Zakat Affidavit (Optional)
– KYC Form
– FATCA Form
– Cheque in favour of Trustee of the Fund
Corporate: The corporate/ Provident/ Pension Fund investors are required to provide the following;
– Memorandum and Article of Association/ Trust deed
– Board / Trustee Resolution approving the investment
– Application/Account Opening Form
– Purchase of Units Form
– Power of Attorney and/or relevant resolution of board of directors/ trustee delegating authority to any of its officer to invest
– NTN of the institution with tax status
– CNIC of the officer to whom the authority has been delegated
– Cheque in favour of Trustee of the Fund

A benchmark’s performance is determined based on past performance of the fund and is considered as an average rate of return for that year in particular. A Mutual Fund’s performance is compared with the benchmark in order to find out whether the Fund performed better than the market.

Yes, Anyone can invest in multiple funds.

All our schemes are open-ended which makes it easy for investors to redeem their investment amount instantly. However, our Fund Managers suggest that you should keep your investment for a longer time period in order to get better returns.

By simply logging on to your iSave account and transferring money via your online banking portal or .

You can start with as low as Rs. 500

Yes, Zakat will be deducted unless Zakat Exemption Declaration form is submitted with the transfer agent.

Amount collected by a mutual fund when it sells units.
Front-end load: The fee is collected when an investor buys the units.
Back-end load: The fee collected when the investor sells back the units. Some funds do not charge any load and are called No Load funds

Withdraw money from your account anytime you want. Redemption payments are made to the investors within a period of a maximum 6 working days, either through a cross-cheque or through a bank transfer by submitting the Redemption form at designated Sales Points of an AMC.

By investing on regular intervals, you average out any market ups and downs and accumulate them for better returns.

According to Section 62 of the Income Tax Ordinance, 2001, a “resident’ tax payer other than a company, is entitled to tax credit on investment in new shares offered to public by a public company listed on a stock exchange in Pakistan. This tax credit is available on the lower of (a) the amount of actual Cost of Investment (b) 20% of Taxable Income for the tax year or (c) Rs. 1 million. The tax credit availed on acquisition of such shares will be need to be paid back, if such shares are disposed off within
24 months of the date of acquisition. Units of Mutual Funds are covered under the definition of shares as per Income Tax Ordinance, 2001.

Funds which meets all the requirements of Shariah law and the principles articulated for “Islamic mode of financing.”
Islamic modes of financing are as follows:
Equity Based

Shariah compliant investment is Riba free, asset backed financial activity governed by the principles of Islamic Shariah. Funds must follow a variety of rules, including investing only in Shariah-compliant companies, appointing a Shariah board, carrying out an annual Shariah audit and purifying certain prohibited types of income, such as interest, by donating them to a charity.

iSave is a completely online portal introduced by MCB – Arif Habib Savings as a convenient, online way to meet all your investing and saving needs within seconds. If you are an existing customer at MCB-AH, you can easily make investments, switch between various funds and withdraw your money with just a few clicks.

New customers can sign up for an account within minutes using the “New Customer” section.

Customers that already had access to their accounts via “Web Bachat” Services have automatically been migrated to iSAVE and they can now just use the same username and password to login to iSAVE as well.

For more information, visit isave.mcbah.com.

iSave allows you to:

  • Open an investment account within 2 minutes without being tied up in tedious forms, paperwork and branch visits.
  • Get started with your first investment within minutes using its state-of-the-art, advanced digital infrastructure,
  • Make seamless and quick withdrawal/conversion requests.
  • Manage your investment portfolio and have your online statement readily available using only a few clicks.
  • Have your investments automatically routed to the safest investment option backed by bank deposits.
  • Get better returns than offered by any bank

Using iSave is as easy as A,B,C. If you are a new member, simply log on to www.isave.mcbah.com to sign up. Once you are on the web page, all you need to do is follow these simple steps:

  1. Enter your Name, CNIC and Mobile Number.
  2. Verfiy your Activation Code
  3. Enter and edit your personal information.
  4. All there’s left to do now is submit and receive confirmation through email.
  5. Your iSave account is ready to use.

If you are an existing customer, you can follow these steps to sign up for an account:

  1. Log on to isave.mcbah.com.
  2. Select the sign up option for existing customer.
  3. Fill out your customer registration details. (Keep your account statement handy. All the registration information you will need is on it).
  4. Enter the Verify your Activation Code sent to you via E-mail.
  5. You will receive your User ID and Password via E-mail.
  6. Your iSave account is ready to use.

If you do not receive your iSave Activation Code, please request for it again. If the problem persists, you can call us @0800-62224 to speak to one of our iSave representatives via our 24 hour helpline.

You can make online payments via:

  1. MCB Bank
  2. Standard Chartered Bank
  3. Faysal Bank
  4. Allied Bank
  5. Bank Al-Habib
  6. Habib Metro
  7. Summit Bank
  8. NRSP Bank
  9. Finca MicroFinance Bank
  • iSave Swift Account
  • Level 2 Account
  • Full Account
Account type Transaction limit Total investment amount during a year   Document required Fund details
Swift Account 25000 per transaction 100,000 CNIC required Direct investment in Cash Management Optimizer using 1Link
Level 2 Account 800,000 per annum 800,000 face to face verification/ biometric verification
Full Account Unlimited Unlimited To fulfill all account opening requirement Any fund of choice

Once you sign up all you need to do is follow the steps below to make an investment:

  • Log in to your iSave account using your Username (you can also use your CNIC as the username) and Password.
  • Click on Invest and fill out the investment form.
  • Select the fund, and fill the amount (iSave Swift Account holders will not be able to modify the fund)
  • Click Proceed.
  • Once you have seen the “your investment request has been placed” message, you may proceed to make the payment as explained below:
  • Transfer the payment amount due. If you have online banking access with Standard Chartered Bank, Faysal Bank, Summit Bank, Habib Metro, NRSP Bank or Bank Al-Habib you can transfer funds to us online. Alternatively, you may request a cheque pick-up via TCS Haazir (currently only available for customers from Karachi, Lahore, Islamabad and Rawalpindi).
  • You will be sent a transaction completion update as soon as it is processed successfully!
  • For Swift Account and Level 2 Account you can make direct investment in MCB Cash Management Optimizer
  • In Full Account, you can invest in any fund of your choice.

IBFT stands for “Inter Bank Funds Transfer” and is a process that allows us to send you your funds directly to your bank account whenever you chose to withdraw them.


The verification process takes a few working days and until the verification is complete, we will be sending you a cheque for your funds.


Accounts may be not be IBFT Verified for a number of reasons. Please contact customer support at 0800 – 62224 for further assistance and we would be happy to help you through in case there are any problems in this regard.

There are multiple benefits of doing so.

  1. Your transaction limits go up (details here)
  2. You can invest in any product / fund you want.
  3. You can hold multiple accounts against your CNIC with us. You may chose to do so, if you wish to take a tax credit against your savings with us, however this is purely your choice and is not mandatory in any way. It simply helps you park the money aside without touching it to meet the tax credit requirements. (Details on tax credit requirements here).

Currently iSAVE Swift account holders are only permitted to hold investments in CMOP – MCB Cash Management Optimizer Funds. This is because it is the fund that exposes your funds to the least amount of risk. We feel your interests are better protected once we have understood your risk profile and you have had a conversation with some of our teams to understand how the other products work. Once you request an upgrade, our team will get in touch with you guide you through the process. You can also place an upgrade request. There are no charges to request an upgrade or maintain an upgraded account whatsoever.

Visit MCBAH.com and hit the contact us section. Select the “i need financial advice” drop own. Please be sure to enter your CNIC so we can pull your account data up and route you to the relevant support teams.

Under the Income tax law, investments in mutual funds can help you gain tax credit. How simple is it? Very. Just make sure you keep that amount invested in one of your accounts for the legally required period of time. More details on tax savings here.

The minimum investment amount is Rs.500

There are two modes of payment for redemption:

  • Online Transfer
  • Cheque (Via TCS Haazir/TCS Delivery/TCS Drop Off Service)

There are no fees to transact with us online (submit an investment request online . If you chose work via one of our distributors or via our on ground teams, a small fee may be charged upon every investment you make.

MCB-AH offers a variety of Shariah Complaint funds to meet your personal satisfaction needs. These include:

  • Shariah Compliant Equity Fund
  • Shariah Compliant Income Fund
  • Shariah Compliant Asset Allocation Fund
  • Shariah Compliant Saving Plans
  • AlHamra Islamic Active Allocation Fund

However investments landing in the CMOP directly are currently only conventional. To invest in Shariah Compliant funds, you need to open a full account.

There are no additional charges if you wish to close your account. You may simply withdraw all the funds you have (relevant taxes may apply).

Growth unit: The investment remains in the Fund until the investor submits a redemption form to encash part or whole of the investment.
Income unit: The investor opts to withdraw a certain amount from the investment at regular intervals.
Bachat unit: While the investor may redeem the investment at any point in time, it is advised that the investment is kept intact for a longer time period in order to gain maximum returns and minimize risk. The investor is not charged any FEL, and 0% BEL will be charged if the amount is not redeemed before 2 years.