Meezan Gold Fund
Meezan Gold Fund (MGF) is a Shariah Compliant Commodity Scheme and the concept of “Meezan Gold Fund” is to invest in gold instruments in the most efficient manner, as permitted by the SECP and the Shariah Advisor.
Investment Objective & Philosophy
The objective of MGF is to provide maximum exposure to prices of Gold in a Shariah Compliant (Islamic) manner, by investing significant portion of the Fund’s net assets in deliverable gold based contracts available on Pakistan Mercantile Exchange (PMEX).
Key Benefits
- Meezan Gold Fund is Pakistan’s first Shariah Compliant open-end commodity scheme
- Affordable investment in the form of divisible units with low initial minimum investment amount requirement.
- Security without hassle of buying, storing and transporting physical gold
- An effective hedge against rising gold prices for long term purchases of gold jewelry
- High purity of gold purchased.
- A convenient means of diversification for investment portfolios.
- Tax Benefits as per current tax laws
- Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 25 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*:
- Capital appreciation over the long-term
- A hedge against inflation or currency devaluation
*Investors are encouraged to consult their Investment advisors prior to investing in the product.
Note: High Risk means Risk of Principal Erosion is High
Key Features
| Scheme Name | Meezan Gold Fund |
|---|---|
| Scheme Type | Open-end Islamic Commodity Fund |
| Date of Inception | August 13, 2015 |
| Fund Size- December 31,2020 | Rs. 467.63 million |
| Objective of the scheme | The Fund seeks to provide maximum exposure to prices of Gold in a Shariah Compliant manner, by investing a significant portion of the Fund’s net assets in deliverable gold based contracts available on PMEX. |
| Benchmark | 70% PKR base closing price of physical gold and 30% 3 month average deposit rates of 3 AA rated Islamic Banks |
| Minimum Investment Amount | Rs.5,000 (and Rs. 1,000 thereafter) |
| Lock-in Period | None |
| Management Fee | 1% |
| 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 |
Price Adjustment Charge (PAC) of 1% shall be added to NAV to determine Offer Price, and 1% shall be deducted from NAV to determine Redemption Price (Redemption Price also applied for Conversion Transaction).
Performance Table
| Fund Performance Highlights | FY20 | FY19 | FY18 | FY17 | FY16 |
|---|---|---|---|---|---|
| MGF Returns | 23.8% | 30.4% | 12.0% | -7.2% | 10.5%* |
| Benchmark Returns | 21.3% | 27.6% | 12.7% | -2.9% | 16.0% |
| MGF Dividend (Rupees per unit) | – | 5.90% | – | – | 0.70* |
*Interim Dividend for the period (August 13, 2015 – June 23, 2016), 322 Days of operations