Islamabad, February 14, 2022 (PPI-OT):To facilitate growth in mutual funds industry, the Securities and Exchange Commission of Pakistan (SECP) has prescribed the regulatory framework for Fixed Rate Mutual Fund through Circular No 3 of 2022. The new category will contribute towards expanding investor base, lead to availability of a low-cost investment product with a low risk factor. A fixed-rate mutual fund focuses on investments that typically pay a set and stable rate of return, such as government bonds, money market placements, certificate of deposits etc.

It designed to generate stable returns for passing the investors/unit holder, thus ensuring competitive return on their investments as compared to other fixed-return products. The fixed-rate mutual fund is particularly important for those investors who prefer to have certainty of returns for their specific periodic needs.

This scheme call also effectively serve institutional investors such as provident funds, pension funds, gratuity funds for managing their liquidity. The regulatory framework specified by the SECP allows flexibility in product design such as investment horizon, offering rates and marketing segment-specific advertisements. The Circular of new framework is available at SECP’s website at https://www.secp.gov.pk/document/circular-3-of-2022-framework-for-fixed-rate-return-mutualfunds/?wpdmdl=44169&refresh=62063c35cb77d1644575797

For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk