Capital Preservation Solutions

Capital preservation funds are schemes which aim to preserve your principal while offering potentially high returns, through dynamic allocation. The dynamic asset allocation is aimed at providing higher returns through participation in Equities, while aiming to protect downside risk of capital through participation in Income/Money Market instruments.

Capital Preservation Solutions

Meezan Capital Preservation Fund - III

Meezan Capital Preservation Fund-III is a Shariah Compliant open-end fund of fund scheme. It is a tool to maximize return through equity market upside potential while simultaneously protecting the principal investment through income/money market participation.

Investment Objective & Philosophy

The objective of MCPF-III is to earn potentially high rate of return utilizing internationally renowned capital protection methodology; Constant Proportion Portfolio insurance (CPPI) while preserving the initial investment amount.

CPPI Strategy is an internationally practiced dynamic asset allocation trading strategy which allocates assets between equity based and income/money market based asset classes. The strategy provides investors to enhance exposure to equities in an upward trending market (up to 100%) while preserve the initial investment amount from downside risk in a downturn market.

Key Benefits

  • Meezan Capital Preservation Fund is Shariah Compliant open-end Fund of Fund scheme
  • Principal preservation of initial investment amount
  • Upto 100% in Exposure in Shariah Compliant Equities
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 29 years, and under the supervision of a reputable shariah advisor, Dr. Muhammad Imran Ashraf Usmani.
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This product is suitable for investors who are seeking*:

  • Attractive returns through equity participation along with principal preservation
  • An effective strategy to reduce risk through CPPI with upto 100% equity exposure
  • Low to Moderate risk and return potential
Low to moderate risk

*Investors are encouraged to consult their financial advisers prior to investing in the product.

Note: Risk is represented as: Low

Key Features

Scheme Name Meezan Capital Preservation Fund III
Scheme Type Open-end Islamic Fund of Funds Scheme
Date of Inception January 31, 2014
Fund Size – Sep 30, 2015 Rs. 3,270 million
Objective of the scheme The Fund seeks to earn a potentially high return through dynamic asset allocation between Shariah Compliant Equities and Shariah Compliant Income/Money Market based Collective Investment Schemes, while providing capital Preservation of the principal investment at completion of the duration of Fund.
Benchmark Combination of KMI-30 Index and Average return on 6-month Islamic bank deposit
Minimum Investment Amount Rs.5000 (and Rs. 1,000 thereafter)
Lock-in Period None
Management Fee 1% (No Management Fees from investment in Al Meezan Funds as per law)
Entry Load 3%
Exit Load 5% upon redemption prior to maturity
Duration 2 years

Fund Performance Highlights

FY15 FY14
MCPF-III Returns 12.10% 5.6%*
Benchmark Returns 12.0% 5.0%
MCPF-III Dividend (Rupees per unit) Rs. 0.53*

*Performance start date of Jan 31, 2014

Note: For details on Tax Credit, please Click Here

Manage Investment At Your Fingertips!

  • Get Account Balance: SMS BAL (Portfolio ID) to ‘6655’
  • Daily NAV Prices : SMS NAV to ‘6655’
  • Investment Advisor Help : SMS ‘Invest’ to ‘6655’
*The return on investment is not fixed and is subject to market risks. If you want to evaluate fund performance, you may refer to the Latest Fund Manager Report. Click here