if you are searching for Mutual funds in Pakistan, and are you ready to secure your financial future while keeping your faith intact? Look no further than Meezan Tahaffuz Pension Fund, the ultimate choice for your retirement savings in Pakistan. This unique and Sharia-compliant pension fund gives you the flexibility to pick from Debt, Equity, or Money Market options, ensuring that your investments align with Islamic finance principles. With Meezan Tahaffuz Pension Fund, you can invest in the future of your dreams, whether you’re seeking stability, growth, or security. Join us today and let’s embark on this exciting journey to a prosperous, Halal retirement. for more Mutual Funds in Pakistan, see my section Mutual Funds.
Understanding the Meezan Tahaffuz Pension Fund: Unique Mutual funds in Pakistan
The Meezan Tahaffuz Pension Fund is a popular choice for individuals in Pakistan who wish to save for their retirement while keeping their faith at the forefront. It’s designed to align with Islamic finance principles, making it a Sharia-compliant retirement savings option.
Types of Funds Within the Meezan Tahaffuz Pension Fund: Unique Mutual funds in Pakistan
- Debt Fund:
- The Debt Fund primarily invests in fixed-income securities, such as government and corporate bonds. These investments offer stability and regular income, making them a suitable choice for those who prefer a more conservative approach to retirement savings.
- Equity Fund:
- The Equity Fund focuses on investments in stocks and shares of companies. This part of the fund is geared toward individuals who are willing to take on some level of risk in exchange for the potential for higher returns over the long term. It’s a great choice if you’re looking to grow your retirement savings steadily.
- Money Market Fund:
- The Money Market Fund invests in short-term, low-risk securities like Treasury bills and short-term certificates of deposit. This fund is ideal for those who want to preserve their capital and have easy access to their savings while earning a competitive return.
Why Choose the Meezan Tahaffuz Pension Fund?
- Sharia Compliance: Your investments are in line with Islamic finance principles.
- Diversified Options: With debt, equity, and money market funds, you can choose the investment strategy that suits your risk tolerance and financial goals.
- Professional Management: Expert fund managers ensure that your investments are managed efficiently.
- Transparent and Accountable: You have access to information about your investments to stay informed about your retirement planning.
Key Features
| Scheme Name | Meezan Tahaffuz Pension Fund |
|---|---|
| Scheme Type | Open-end Islamic Voluntary Pension Scheme |
| Date of Inception | June 28, 2007 |
| Fund Size – July 31st, 2023 | Rs. 17.88 Billion |
| Allocation Schemes | Six Asset Allocation Schemes:High VolatilityMedium VolatilityLow VolatilityLower VolatilityLife Cycle PlanCustomized Allocation |
| Minimum Investment Amount | Rs.1,000 |
| Lock-in Period | No lock-in (investor will be taxed on redemption), however a commitment to remain invested till retirement is the essence of the scheme |
| Management Fee | Meezan Tahaffuz Pension Fund (Debt): 0.50% Meezan Tahaffuz Pension Fund (EQ): 1.50% Meezan Tahaffuz Pension Fund (GSF): 1.30% Meezan Tahaffuz Pension Fund (MM): 0.50% |
| Entry Load | 3% |
| Exit Load | Nil |
| Rebalancing Frequency | Semi-Annually**exceptions may apply in compliance with Offering Document |
| Tax Benefits | EET Structure – Tax Exempt on Contributions – Tax Exempt earnings throughout the Investment Period – At the time of retirement, a tax-free withdrawal on 50% of accumulated amount, remaining 50% can be used for Monthly Income Payment Plan* or purchase of Annuity from a Life Insurance Company*Disbursement of MIPP is subject to applicable Tax laws. |
Eligibility criteria for Takaful coverage on minimum investment of 10,000
| Benefit | Cause of Event | Takaful Sum per Investor Covered |
|---|---|---|
| Basic Death Benefit | Natural or Accident | Equal to the investment amount of each individual subject to Max of Rs. 5,000,000 per investor |
| Accidental Death Benefit (ADB) | Accident only | Equal to the investment amount of each individual subject to Max of Rs. 5,000,000 per investor in addition to Basic Death Benefit |
| Permanent Total Disability (PTD) | Accident only | Equal to the investment amount of each individual subject to Max of Rs. 5,000,000 per investor |
| Accidental Medical Expense | Accident only | 20% of investment amount of each individual subject to Max of Rs. 1,000,000 per investor |
Below is the video all about Meezan tahaffuz plan
Key Benefits:
- Shariah Compliant Retirement: Meezan Tahaffuz Pension Fund is Pakistan’s first Shariah-compliant voluntary pension scheme, ensuring your investments align with your Islamic beliefs.
- Tax Efficiency: Enjoy tax credits (under ITO Section 63) on up to 20% of your taxable income, making it a smart way to save for retirement while reducing your tax burden.
- Full Ownership: Your pension fund is entirely yours, and you can choose from various allocation schemes, putting you in control of your financial future.
- Flexible Contributions: Invest at your convenience with options for monthly, quarterly, half-yearly, or yearly installments. No need to worry about penalties for missed payments.
- Portability: Your pension account remains with you, even when you change jobs. You can continue contributing through your new employer or personally, and transfer your account to another pension fund manager without fees or penalties.
- Lump-sum Payment: On retirement, withdraw up to 50% of your accumulated balance, tax-free, to fulfill your financial goals.
- Premature Retirement: In case of death or disability as per VPS Rules, your nominees can access 50% of the accumulated balance without tax implications.
- Diverse Investment Options: Choose from a variety of allocation schemes tailored to your specific needs and requirements.
- Free Takaful Cover: Enjoy free Takaful protection for natural death, accidental death, permanent total disability, and accidental medical expenses (up to Rs. 5 million) on investments of Rs. 10,000 and above.
- Flexible Retirement Age: Select a retirement age between 60 and 70, with the option to change it later as your circumstances evolve.
- Systematic Savings: A structured way to save during your working years, ensuring you reap the benefits during retirement.
- Expert Management: Your investments are overseen by Pakistan’s only Shariah-compliant Asset Management Company, backed by over 28 years of experience, and guided by esteemed Shariah advisor Dr. Imran Ashraf Usmani.
Is your retirement planning strategy:
- Focused on Building a Secure Voluntary Pension? Meezan Tahaffuz Pension Fund is designed to help you create a robust financial safety net for your retirement years.
- In Need of Flexibility and Convenience? We offer an investment approach that’s both flexible and convenient, without harsh penalties for missed payments, making your retirement planning hassle-free.
- Looking for 100% Exposure to a Specific Asset Class? Tailor your retirement fund to your unique risk and return requirements with the option for 100% exposure to a specific asset class.
- Concerned about Risk Profile and Principal Erosion? Your risk profile and the potential for principal erosion are customizable, ensuring your investment strategy aligns with your financial goals and preferences.
Conclusion
In conclusion, Meezan Tahaffuz Pension Fund offers a comprehensive and ethical solution for your retirement planning needs. Whether you prefer the stability of debt, the growth potential of Equity, or the security of Money Market, this fund has you covered. It’s time to secure your retirement with Meezan Tahaffuz Pension Fund, aligning your financial future with your faith. Start your journey towards a worry-free retirement today.
