Hussain Kaisrani replied on Tuesday, June 16, 2015 07:24 AM
ٰI fully agree with brother Zohaib that it is not a good time to invest in Mutual Funds and stock exchange.
Moreover it is not recommended to invest huge amounts if you have other options available. These are beneficial for long term basis and you can keep adding more funds as and when possible. These funds are best for salaried persons who have small savings.
@ MJ - In simple words and in general, Mutual Fund behaves like Files of Real Estate. There is no fix return promised (if funds are not fixed for fixed duration). For first year there is a possibility that an investor could not get any significant return as there are charges involved by the Fund provider. One should wait for at least three years to see a good reward. Mutual Fund is an alternative of National Savings where profit ratio has dropped too much now. Another advantage of these funds is that you can draw your amount anytime (within 72 hours).
Personally I keep a portion of my savings in mutual fund so that I can withdraw it immediately for any emergency need. It is certainly FAR MORE better than keeping it in normal bank account.
Ups and downs are always there in Mutul Funds investments. As a new investor, one should go for NIT mutual funds as it is a Govt. of Pakistan fund. NIT Islamic Equity Fund was introduced one month ago and the rate of one unit was offered at Rs.10. If invested on launch time, there were no administration charges applied on investment. The present rate is Rs.10.44 per unit. If you had invested Rs. 1 Million a month ago, your profit today would have been Rs.40,000/= approx. (after some deductions). Hope you understand that it is not fixed profit ratio as rate can go and down.
In my opinion, one should expect that an investment in good mutual fund should become double after 3 to 4 years.
I have avoided technicalities to make the matter simple. Hope you got required information.
@FRH - As per Muftee Sahiban's Fatwas the profit of these funds (if invested in Islamic one) is perfectly Halal. |
