Nafa stock funds: A Tale of Investing in NAFA Stock Fund
A sorry Tale of Investment in NAFA Stock Fund
Mohammad Imtiaz Hussain, who retired from Unilever Pakistan in 2013 and made a mistake at a friend’s request and deposited his money with the ‘NAFA stock Islamic Allocation Fund’ one of the NBP-Funds products.
The NBP funds’ profit rates were lucrative to attract them. Therefore, he spent half of the gratuity on the construction of his house in Lahore. He deposited Rs 3 million in NBP-Fund Management Limited in March 2017 in the name of his wife Tabassum Imtiaz due to higher funds profits rates. His wife was teaching in a local school in Lahore.
He made this mistake at a friend’s request and deposited his money with the ‘NAFA stock Islamic Allocation Fund’ one of the NBP-Fund products. He believed it a reliable government Bank Fund in Pakistan.
According to the treasur.com report, initially, he was offered Rs 30,000/month but after necessary documentation, he was asked to get Rs 24,000 per month, on which, he and his wife agreed. The family was passing their life with happiness as they were receiving pension and return on the Fund.
Suddenly, he received a letter through a courier in February 2020 that he has a remaining amount of Rs 1.79 million with ‘NAFA Islamic Allocation Fund’. It was shocking news for this old couple as they had lost over Rs 1.2 million over a period of three years or the company paid monthly profit from his own amount.
The NBP-Fund office in Lahore told him that the Stock Market had crashed.
The amazing thing about this investment is that Imtiaz Hussain never received original documents from the NAFA funds branch in Lahore and invested his all hard-earned money on photocopies of the Funds as he has the trust in the National Bank of Pakistan like almost all the investors at that time seeing the endorsement of nation’s bank NBP on their publically available documents.
He, like almost all the other investors, didn’t know till he recently discovered by reading articles of Treasure Magazine that NBP-Fund and National Bank is a separate entity.
Almost half of the investors of NAFA has been deceived and deprived of their hard-earned money in the name of crashing the Stock Market, but in other words, we can say that it’s a modern way to loot the innocent citizens as they (people) don’t know regarding the Pakistan Stock Exchange, Mutual Funds and how they are operating in the stock market for their own interests. This is a white-collar crime new for Pakistani and overseas investors.
Federal Ombudsman order categorically specified as undersigned:
In March 2020, Imtiaz Hussain filed a complaint at the Federal Ombudsman office Lahore and after struggling for five-six months.
Ombudsman’s office told him in the order that the agency had not submitted any written report and also no one appeared on behalf of the Agency during the hearing. It referred the instant complaint to the Agency to take appropriate action on its part and informed this Secretariat accordingly.”
In the order, it further closed the investigation on the complaint in terms of regulation 23 (1)(2) of the Wafaqi Mohtasib (Investigation and Disposal of Complaints) Regulations, 2013. It remanded the case to the President, National Bank of Pakistan to decide the same within a period of thirty days from the receipt of these findings.”
Mohtasib in an order asked the complainant against NAFA funds to file a complaint again if agency does not take action. Arif Usmani, President of the National Bank of Pakistan (NBP) is not replying to us (treasure magazine) and others over this issue. The investors experienced the same practice in past.
Imtiaz Hussain is also running a Youtube Channel from Lahore. He claimed he had a number of investors of this Fund whom NAFA stock fund deceived. They were ready to file a case against the officials of NBP-Funds Management Limited involved in this scam.
In the video message, he also requested Chief of the Army Staff General Qamar Javed Bajwa and the Supreme Court of Pakistan, and Prime Minister Imran Khan to take action against these mafias of NAFA stock funds who are the main hurdles in the development of Pakistan.
How to invest in NBP Funds
NBP Fund Management Limited (NBP Funds) is the leading Asset Management Company in Pakistan that provides low-cost mutual funds.
You can benefit from NBP funds, no matter whether you are financial professionals, individual investors or representing a corporate entity or any other institution.
The NBP Funds is managing savings of over 18,060 Crores of investors in various investment solutions.
National Bank of Pakistan and Baltoro Growth Fund are the main sponsors of the company.
NBP Funds has played a key to promote investment opportunities in Pakistan as it utilized its financial engineering expertise.
It offers a comprehensive range of investment products and services to meet the demand of its investors’ individual requirements.
The company offers different schemes for investment. NBP stock fund is one of them that offers lucrative return rates to invest.
It has four funds which you can choose to invest in.
Minimum investment
Growth units – Rs.10000
Income units -Rs.100, 000
Load with Life Takaful:
Amount Up to Rs. 5 million: 3%
Amount over and above Rs. 5 million: 1% (Nil if greater than 50 million)-
NBP Islamic Savings fund
NBP Islamic Savings Fund offers you opportunities to invest and earn a reasonable rate of return in a Shariah Compliant manner.
You can invest in Shariah Compliant Debt securities, Money Market instruments, and Bank Deposits.
NBP Islamic Mahana Amdani Fund (NIMFA)
Its objective is to provide monthly income to investors who invest in Shariah Compliant Money Market and Debt avenues.
NBP Sarmaya Izafa Fund
It helps generate income if you invest in debt and money market securities.
It also generates capital appreciation if anyone invests in equity and equity-related securities.
The fund size amounts to Rs. 3,063 million as of 30th June 2021.
The minimum investment you required is Rs. 1,000/- (Rs. 10,000/- at the time of account opening.
NAFA Islamic Pension Fund (NIPF)
The purpose of this fund is to secure your savings and ensures regular income after retirement. However, all is done in a Shariah Compliant manner.
It has different sub-funds like NIPF Debt Sub-Fund and NIPF Money Market Sub-Fund.
Equity Sub-Fund
You may invest in equity to obtain long-run capital appreciation and attractive returns with exposure to the volatility of the stock market.
Debt Sub-Fund
You may invest in Fixed Income securities, such as TFC’s that ensure good credit rating and liquidity by choosing this fund.
Money Market Sub-Fund
You may also prefer this fund if you invest mainly in short-term Shariah Compliant money market instruments, like Islamic Bank deposits.
This option will provide a regular and stable profit stream.
NBP stock fund
The objective of the NBP Stock Fund (NSF) is to provide long-term growth to investors by investing primarily in listed companies in Pakistan.
The fund size also amounts to Rs. 20,694 million as of 30th June 2021.
NBP mutual funds Profit Rates
NBP mutual funds offer three options for investment if you switch to invest up to one year.
12% return per annum with low risk
15% return per annum with a moderate risk
18% return per annum with a high risk
So, the fund’s profits rates vary according to different risks which may be low, high, and moderate.
NBP Funds Login
You have to create your account on the website and password to enter into your account.
NBP Complaint
The head office of NBP funds is in Karachi. However, NBP has its portal where you can have knowledge of the NBP Nafa scheme, Nafa money market, monthly profit, contact number, branches, and funds manager.
You can also have an option of query and complaint on its website where you can lodge a complaint by entering your name and email account.
