MUFAP thanked SECP for reduction in fee levied on mutual fund investors

KARACHI: The Board and members of Mutual Funds Association of Pakistan (MUFAP) thank the Securities and Exchange Commission of Pakistan (SECP) and its Policy Board for taking the bold initiative to reduce the cost of doing business for investors in mutual funds via reduction in SECP fee levied on mutual fund investors.

In a letter addressed to the SECP Policy Board, MUFAP shared that in the short span of five months since the introduction of the policy reforms, the industry size has grown by 20 percent to Rs. 692 billion from Rs. 578 billion whereas the retail investor’s investment size has risen by 24 percent from around Rs. 200 billion to Rs. 248 billion. Investment in Money Market and Income Funds has risen by 32 percent, and in equity related Funds by 7 percent.

MUFAP also shared its future plans for increasing the low retail investor base in Pakistan. MUFAP is in the midst of developing a mass scale investor awareness program to educate and create awareness among the general public of benefits of savings via mutual funds. The Industry is also aggressively increasing the number of branches and sales staff to reach out to the retail investors.

These will significantly help promote not just mutual fund awareness but also capital markets awareness and contribute to a widening of the capital markets investor base which is highly necessary to promote a savings culture in the country.

The impressive growth of the mutual funds industry, which is presently underway as a result of SECP Policy Reforms, will lead to higher saving and investment rate in the country, which will spur Pakistan’s economic growth rate, leading to higher government tax revenues and employment in the country. Mutual Fund Industry is thankful to SECP Policy Board and SECP for undertaking capital markets reforms, which were overdue for a very long time.****