The investment objective of the fund is to seek steady returns with a moderate risk for investors by investing in a portfolio of equity, short medium term debt and money market instruments.
The Pakistan Pension Fund (PPF), under the Voluntary Pension System (VPS) was launched on 29th July 2007. The PPF made its first investment on 29th July 2007 after the necessary legal documentation and operational approvals were received.
PPF is a flexible savings and investment plan under VPS which facilitates all individuals who are Pakistani nationals, to save for their retirement in a systematic way, topping up their savings with investment returns at their desired investment exposure and granting them special tax benefits, with numerous valuable options before, at and after retirement. The scheme can be used as a replacement for any existing Provident, Pension or Gratuity funds, or can be entered into alongside these funds. Systematic transition of the existing Provident/Gratuity/Pension schemes to the VPS is also possible in a manner that allows maximum tax credit to the concerned.
VPS carries clear advantages over existing saving funds. Most obvious ones are tax savings, individualized asset allocation, minimal administration and avoiding complications associated with Defined Benefit Schemes.
The investor has a choice between various allocation schemes that PPF offers, each of which is invested in different proportions in the three sub-funds: Equity, Debt and Money Market.
PPF is a long only scheme and is not allowed to undertake leveraged investments.