Allocation Scheme

Equity Sub Fund

Debt  Sub Fund

Money Market Sub Fund

Aggressive

Min 65%

Min 20%

Nil

Balanced

Min 35%

Min 40%

Min 10%

Conservative

Min 10%

Min 60%

Min 15%

Very Conservative

Nil

Min 40%

Min 40%

Equity Sub Fund

Debt Sub Fund

Money Market Sub Fund

Returns

Highest

Moderate

Lowest

Inflation Risk

Lowest

High

Highest

Volatility

Highest

Moderate

Lowest

Dual Tax Benefits:

The investments in MTPF offer dual tax benefits as contributions are available for tax credit and return on the same are also tax free. The following is an example of the tax credits which the participant shall receive.

For Salaried Individuals

Taxable Income (Rs. p.a.)

Contribution (Rs. p.a.)

Tax Credit (Rs. p.a.)

300,000

60,000

450

500,000

100,000

3,500

800,000

160,000

12,000

1,200,000

240,000

26,400

2,500,000

500,000

80,000

8,400,001

500,000

100,000

For Non Salaried Individuals

Taxable Income (Rs. p.a.)

Contribution (Rs. p.a.)

Tax Credit (Rs. p.a.)

300,000

60,000

3,000

500,000

100,000

10,000

800,000

160,000

24,000

1,200,000

240,000

50,400

1,500,000

300,000

75,000

2,500,000

500,000

125,000

For detailed understanding participants are advised to read clause 12.1 of the offering document. An investor of MTPF gets dual tax benefit. - Tax rebate on contribution amount and Tax exemption on returns earned on those contributions. Thus, an individual will have more money to re-invest for getting much greater capital appreciation over a long period of time.

 Professional Fund Management

The name of Al Meezan Investments is associated with high quality Fund Management which is also in accordance with the guidelines of Shariah. MTPF not only aims at long-term capital preservation but also to earn greater returns on your contributions through prudent fund management     

 Contribution amount and mode

The initial Contribution of Rs.1, 000 is required for opening of account and subsequent contributions can be as low as Rs.1, 000. The first step in determining the amount of contributions is that you decide how much money you will require after retirement. In addition, you will have to work out how much can you set aside on a monthly basis to come with a lump sum amount large enough to create an annuity, which provides a desirable monthly income after retirement. Contributions can be made at the convenience of the participant i.e., monthly, quarterly, half yearly, annually or by lump sum payment.    

Retirement Age:

The participant can select any age between 60 and 70 years as his retirement age. However, he should intimate the Pension Fund Manager at least 30 days before retirement. The retirement age once selected, can be changed at a later date by the participant.

  Benefits on Retirement:

All accumulated funds at the date of retirement of the Participant will be available to him/her in the following manner:

a.       The Participant can withdraw Tax-Free up to twenty five percent of the amount in his Individual Pension Account, in cash;

b.       The participant can withdraw 100% of the amount in his Individual Pension Account subject to (deduction of withholding tax under the)  provisions of Income Tax Ordinance, 2001

c.        He can enter into an agreement with the Pension Fund Manager to withdraw from the remaining amount, monthly installments till the age of seventy-five years or earlier, according to an income payment plan, approved by the SECP. At the expiry of the income payment plan according to clause (b) above, the Participant shall use the outstanding balance in his individual pension account to purchase an annuity from a Life Insurance Company of his choice. OR

d.       He can use the remaining amount to purchase an annuity (single life, joint or survivor life, level, with or without guarantee period, increasing, investment-linked and retail price index linked or with any additional features from a Life Insurance Company of his/her choice;

Withdrawal of funds before retirement:

A participant at any time before retirement shall have complete freedom to redeem the total or part of his/her accumulated amount (contributions and profits earned thereon)  subject to payment of tax @ his/her average income tax rate of the preceding three years.

  In case of death before retirement:

In case of death of a participant before the retirement age, all his investment will be redeemed and same will be available to the nominated survivors with the following options:

a.        Withdraw his share of the amount subject to the  conditions laid down in the Income Tax Ordinance 2001 (i.e. on payment of Tax @ three years average tax rate) ;

b.       Transfer his/her share of the amount into his existing or new individual pension account to be opened with the Pension Fund manager,

c.       Use his/her share of the amount to purchase an annuity on his life from a Life Insurance Company, only-if his/her age is fifty- five years or more; or

d.       Use his/her share of the amount to purchase a deferred annuity on his life from a Life Insurance Company to commence at age fifty five years or later  

Portability

The participant has the option to change his/her Pension Fund Manager at the anniversary of his/her account opening. In order to change the Pension Fund Manager, he/she needs to inform the Pension Fund Manager 30 days in advance.