In order to foster the growth of Islamic mutual fund industry, the Securities and Exchange Commission of Pakistan has revised the investment parameters for Shariah Compliant open end collective investment schemes.
The Commission allowed the Islamic mutual funds to include the Government of Pakistan Ijarah Sukuk not exceeding 90 days remaining maturity in cash and near cash instruments requirement.
Shariah Compliant open end collective investments schemes has not seen the issuance of short term Islamic Government papers like T-Bills, therefore, Government Ijarah Sukuk having remaining maturity of 90 days or less is the only viable and available avenue for investment in cash and near cash equivalent.
Over the past decade the Shariah Compliant Funds have shown a tremendous growth and grew from Rs 9 billion to Rs 139 billion.
The size of Islamic mutual funds is 29.12 percent of total mutual fund industry. A variety of mutual funds are being offered in this category to suit the varied needs of the investors.
It is expected that these revised investment parameters will cater the growing needs of Islamic Mutual fund industry and investors.-PR
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