The proposed fund will offer up to 100% exposure to the equity market as it gets dynamically allocated between Shariah compliant equity and income/money market mutual funds.
UBL Funds CEO Mir Mohammad Ali was quoted by brecorder.com as saying, "Our Shariah Advisors, Mufti Mohammad Hassan Kaleem and Mufti Muhammad Najeeb Khan have approved of this fund as per the guidelines of Shariah, ensuring that our investors reap Riba-Free returns while preserving their principal investments."
The new fund aims to offer unique profit lock-in feature so that the profits can be realized at various intervals during the two-year life of the fund.
Due to this asset allocation methodology, the portion of funds to equities will grow in case, the stock market rises, while exposure to Income/Money Market will increase, when the stock market falls.
