Meezan Balanced Fund
Meezan Balanced Fund is a Shariah Compliant open-end balanced scheme. It is a tool that provides exposure to both Equity and Debt markets through a single fund. The earnings are generated by potential capital appreciation and regular income. Meezan Balanced Fund ( previously a closed end balanced scheme ) was converted into an open-end balanced fund with effect from July 1, 2013.
Investment Objective & Philosophy
The Fund seeks to generate long term capital appreciation as well as current income by creating a balanced portfolio that is invested both in high quality Shariah compliant equity and Income Instruments.
MBF is positioned as a relatively lesser risky alternative to a pure equity fund, while retaining the potential upside from equities portion together with stable income from Shariah compliant fixed income instruments. Hence making it less risky and less volatile than pure equity funds – moreover this helps MBF deliver steady returns across various market cycles.
Key Benefits
- Meezan Balanced Fund is Pakistan’s first Shariah Compliant open-end balanced scheme
- Cumulative return since inception (December 20, 2004 till September 30, 2021) is 561.99% in PKR terms.
- Average Annualized return since inception (December 20, 2004 till September 30, 2021) is 11.92% in PKR terms.
- Strong long-term performance track record both in absolute terms and relative to its benchmark
- Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 26 years, and under the supervision of the Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani
This product is suitable for investors who are seeking*:
- Balanced investment strategy, both in equities and debt markets while avoiding the volatility of pure equity investments.
- Portfolio diversification through just one fund without having to invest in multiple funds.
- A balanced strategy to meet their financial goals within short- medium term with moderate risk.
*Investors are encouraged to consult their Investment advisors prior to investing in the product.
Note: Medium Risk means Risk of Principal Erosion is Medium
Investment Growth
If you invested Rs. 100,000 in MBF at the time of launch in December 2004, the value of your investment has increased by 569.76% to reach Rs. 669,760 as on June 30, 2021.
Key Features
| Scheme Name | Meezan Balanced Fund |
|---|---|
| Scheme Type | Open-end Islamic Balanced Fund |
| Date of Inception | December 20, 2004 |
| Fund Size – September 30, 2021 | Rs. 4.62 Billion |
| Objective of the scheme | The Fund seeks to generate long term capital appreciation as well as current income by creating a balanced portfolio that is invested both in high quality equity securities and Islamic Income Instruments. |
| Benchmark | Weighted average return of KMI 30 Index and Fixed Income/Money Market Scheme as per actual allocation |
| Minimum Investment Amount | Rs.5,000 (and Rs. 1,000 thereafter) |
| Lock-in Period | None |
| Management Fee | Up to 2% |
| Entry Load | 2% |
| Exit Load | Nil |
| Selling and Marketing Expense | 0.4% |
| Tax Benefits | Tax credit (as per prevailing Tax Rules)* on maximum 20% of your taxable income or Rs. 20 Lac, whichever is lower. *Under Section 62 of the Income Tax Ordinance 2001 |
| Systematic Investment Plan Facility | Yes |
| Fund performance Highlights | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 | FY10 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MBF Returns | 18.1% | 8% | -13% | -9% | 15% | 12% | 16% | 20% | 32% | 17% | 25% | 23% |
| Benchmark Returns | 19.5% | 6% | -12% | -4% | 12% | 10% | 13% | 18% | 30% | 10% | 25% | 21% |
| MBF Dividend (Rupees per unit) | – | 0.8446 | – | – | 1.25* | 0.60* | 0.80* | 2.25 | 1.50 | 1.90 | 1.75 | 1.55 |
*Interim Dividend for the period (July 1, 2016 – June 22, 2017)
Note: For details on Tax Credit, please Click Here