Q. Can a mutual fund ever lose money?

Yes. If the fund is not capital guaranteed, the investor can have a capital gain or loss on his investments.

Q. How long does an ideal mutual fund investor hold his investments?

3-5 years. A short term investments generally result in erratic returns.

Q. Are all mutual funds capital guaranteed?

No

Q. Is NIT guaranteed by Government of Pakistan?

No

Q. Can I forecast mutual funds price & dividend on the basis of past performance?

No. Past performance is no guarantee of its future performance

Q. Are any of the mutual funds belonging to the following Fund Houses guaranteed by SCB?
Fund Houses are restricted to A) Arif Habib Investments Limited B) UBL Funds

No. SCB is only a distributor of these funds.

Q. What is a suitable investment for a customer falling in A category (most conservative)?

Short-term deposit with SCB or investing in Certificate of Musharika/Certificate of Investment.

Q. Which is the riskiest investment; a stock market fund, Income fund or a Money market fund?

Any fund with underlying exposure in the stock market is the riskiest followed by Fixed Income Funds and lastly the Money Market Fund. Stock market Funds will also have the highest returns reflecting the inherent risk on the investment. The returns, while being the highest in good times can also be negative in bearish markets.

Q. If I redeem today, how fast can I get my money?

As per SECP & fund houses guidelines you can get your money back within 6 working days. However the rate applicable for redemption will be that days (day you sign the application) redemption rate issued by fund houses.

Q. What is the current value on my Unit Trusts?

A Mutual Fund’s Net Asset Value (NAV) is published on the Fund House’s website and leading newspapers on a daily basis. Please obtain the NAV and multiply this rate with the no of units to get the current value.
Eg: NAV is Rs 133.47. Number of units is 40,000
40,000 * Rs 133.47= Rs 5,338,800/-

Q. Is it better to stay in or out of the markets at this time?

One of the world's most famous investment managers, when asked the same question, answered by saying: "There is no "best time" for investing in unit trusts, as they can offer so many different opportunities regardless of stock market conditions. There are funds that perform well in rising markets, and others for falling markets. The choice is vast. What you should remember is that you should never make investing in unit trusts a single event. The best way to invest in funds is to do so regularly, either by a regular saving plan, or whenever you have spare money in your bank account.

Q. If the markets are "crashing" what should I do? Should I sell my UT holdings?

As SCBs role is NOT of advisory but that of facilitator we are not in a position to advise. However ideally your decision should depend on:

• Tenor of your investment
• Risk outlook
• Need of liquidity

Q. I dont feel comfortable. I want to sell my UT holdings immediately.

Ok. Please fill out the AMC redemption form. You will receive cash in your bank account within 6 working days.

Q. If I feel the markets are really low? Should I be buying more right now?

As SCBs role is NOT of advisory but that of facilitator we are not in a position to advise. You should be making you own informed decision. However ideally your decision should depend on:

• Tenor of your investment
• Risk outlook
• Need of liquidity

Q. Can I please cancel the subscription order I have already placed?

No. However you may fill out the redemption form at todays NAV & the money will be credited into your account within 6 working days.

Q. My portfolio has declined by X %. How long do you think it will take for me to recover my money? I don't know what to do anymore!

Your return depends upon the holding period of your investment. You can average out a better return by holding on the investment for a period of 3,5 & 7 years.

Q. I understand that the market is panicking now, but what if I need my money in about 6 months time?

You can always redeem your units at any working day of the week. The market may be lower, higher or stagnant at that time.

Q. Is the worst over, or is there more to come?

Financial markets are organic, dependant on social economic & political conditions prevailing. The future movement of the market cannot be predicted but only estimated as Fund House analysts given expert opinion with future price estimates based on certain assumptions.

Q. Should I sell all my holdings and invest in property instead?

Property markets are equally volatile. The decision is entirely yours.