Al Meezan Investments

Retirement Plans

Retirement planning is one of the most important life-stage goals! Yet, many of us are unable to plan prudently to ensure we have a comfortable and hassle-free post-retirement life. We can help you plan your retirement in a convenient and efficient way.

Meezan Tahaffuz Pension Fund

Meezan Tahaffuz Pension Fund is Pakistan’s first and the largest Shariah Compliant Voluntary Pension Scheme. MTPF is the best way to save and invest for your post-retirement needs and it has the potential to deliver superior returns with the added advantage of providing immense Tax Benefits* which significantly enhances the yield on your investment.

*As per prevailing tax laws

Investment Objective & Philosophy

The Fund seeks to provide participants a regular Halal income stream after retirement/disability when they can no longer earn regular income to support their living so that they are not dependent on other members of the society.

Contributions in MTPF are invested in various Shariah compliant instruments to earn Halal returns and create wealth over the entire work life of the participant in accordance with the investment policy of MTPF. You can invest money regularly or you can make lump-sum payments as and when you want.

You can choose from a wide range of investment options; the one that is most suitable for you will depend on your retirement goals, age and your appetite for risk. Your payments will be invested in the particular scheme that you choose with the aim of growing your individual pension account.

Key Benefits

  • Meezan Tahaffuz Pension Fund is Pakistan’s first Shariah Compliant voluntary pension scheme
  • It is a Tax Efficient Structure and the Best Way to save for your Retirement wherein you can avail Tax Credit (as per ITO Section 63) on up to 20% of your taxable income.
    Additional catch-up incentives are provided to over 40 year’s age investors, with a maximum tax credit on 30% of taxable income till 55 years or older. This is in addition to Tax credit facility on investment of upto Rs. 1,500,000 or 20% of annual taxable income (whichever is lower) in open end mutual funds.
  • The Pension Fund is Fully Yours and you have the choice of selecting allocation schemes
  • It’s Flexible, It’s Convenient – Choose to invest regularly through monthly, quarterly, half-yearly, yearly installments or contribute as and when you want, without any risk of penalties on missing payments.
  • It’s Portable – Your pension account will stay with you (remember it’s all yours!) even when you change jobs. Contributions can be resumed at any time either through the new employer, your personal contribution or both. Unlike conventional employee benefit funds which get disbanded when an employee changes job, your account in MTPF stays intact and continues with or without the new employer. Moreover, you can transfer your pension account to another Pension Fund manager of your choice as and when you like, again without any charge or penalty.
  • Lump-sum Payment available on Retirement – On retirement, participants can withdraw up to 50% of the accumulated balance from their pension account, free of tax.
  • Premature Retirement – Death or disability, as defined in VPS Rules is deemed as retirement. This entitles the nominees to encash 50% of the accumulated balance, again free of tax.
  • Range of Investment Options – A variety of investment ‘allocation schemes’ to choose from, customized to suit specific needs and requirements of the participant.
  • Free Takaful Cover – Free of cost Takaful protection for Natural Death, Accidental Death, Permanent Total Disability and Accidental Medical Expenses upto Rs. 5 Million on investment of Rs. 100,000 and above.
  • Choose Your Retirement Age – A participant can select a retirement age between 60 and 70; and also change it at a later date, if he or she wants due to change of circumstances.
  • Allows you to systematically save during work years, so that you can benefit on retirement
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 20 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*:

  • To build a voluntary pension for financial security after retirement
  • Flexible and convenient investment which does not penalize for missing payments
  • 100% exposure to one particular asset class for building retirement as per the risk and return requirement
  • Risk and return potential Low- High as per the allocation scheme.

*Investors are encouraged to consult their Investment advisors prior to investing in the product.

Key Features

Scheme Name Meezan Tahaffuz Pension Fund
Scheme Type Open-end Islamic Voluntary Pension Scheme
Date of Inception June 27, 2007
Fund Size – March 31, 2017 Rs. 8,789 million
Objective of the scheme To provide participants a regular Halal income at the time of retirement and at an age when one’s capacity to work is diminished, so that one is not dependent on other members of the society.
Allocation Schemes Six Asset Allocation Schemes:

  1. High Volatility
  2. Medium Volatility
  3. Low Volatility
  4. Lower Volatility
  5. Life Cycle Plan
  6. Customized Allocation
Minimum Investment Amount Rs.1,000
Lock-in Period No lock-in (investor will be taxed on redemption), however a commitment to remain invested till retirement is the essence of the scheme
Management Fee 1.5%
Entry Load 3%
Exit Load Nil
Rebalancing Frequency Semi- Annually*
*exceptions may apply in compliance with Offering Document
Tax Benefits EET Structure

  • Tax Exempt Contributions
  • Tax Exempt earnings throughout the Investment Period
  • Tax on 50% of accumulated amount, Tax free withdrawal of remaining 50% balance

Asset Allocation Schemes

Equity Sub Fund Debt Sub Fund Money Market Sub Fund Gold Sub Fund
High Volatility Min 40% Min 20% Nil Max 25%
Medium Volatility Min 20% Min 40% Min 10% Max 15%
Low Volatility Min 05% Min 60% Min 15% Max 05%
Lower Volatility Nil Min 40% Min 40% Nil
Life Cycle Plan
Automatically adjusts your allocation from High Risk assets towards Lower Risk based on your age profile
Variable Volatility 0-100% 0-100% 0-100% 0-100%

Fund performance Highlights

FY16 FY15 FY14 FY13 FY12 FY11 FY10
MTPF – Equity Sub Fund 18.1% 26.6% 32.4% 54.9% 16.8% 36.0% 31.50%
MTPF – Debt Sub Fund 4.5% 6.4% 7.7% 8.3% 9.5% 10.9% 8.50%
MTPF – Money Market Sub Fund 4.0% 6.9% 6.9% 7.8% 10.9% 10.7% 8.50%

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