DMMF, our open-end Money Market fund remains the flagship fund of our family of products. The fund has been rated “5-star” by the Pakistan Credit Rating Agency (PACRA) since it became eligible for a rating, which implies that the fund has been in the top 10% of all funds in Pakistan which fall under the category. The star ratings measure the performance of the funds not only on the returns given by these funds over the period of analysis (12 months of the Financial Year) but also the risk – measured by variability in return over monthly periods. Additionally, the credit quality of assets is also considered.

The Fund was launched in May 2003 and has had consistently competitive returns. DMMF is very conservative and risk-averse and primarily invests in only “A” rated Term Finance Certificates, bonds, corporate debentures, Government Securities and other money market instruments.

The Securities and Exchange Commission of Pakistan has allowed DMMF the risk category of “low risk”. This is further enhanced, when DMMF is considered by the State Bank of Pakistan as a low risk investment. Banks and DFI’s may not have an exposure of greater than 20% of their equity in shares. The State Bank of Pakistan goes on to state, “Units of those Mutual Funds, which are invested purely in debt securities (such as DMMF), shall not be considered as part of the exposure limit of 20%”. This highlights the risk-averse nature of DMMF.

The Fund is highly liquid with redemption taking usually 3 working days and has one of the lowest management and trustee fees in the industry. The fund is listed on the Karachi Stock Exchange (KSE).

The prime objective of the Fund is to provide a consistent and better return to unit holders as compared to other short-term investment options available in the market like bank deposits, certificates of investment and national saving schemes on net of tax basis.

If you or a family member is a taxpayer, then by investing approximately Rs. 300,000/- in DMMF, you will be able to reduce your tax payments by your marginal tax rate. Thus, if you are in the 35% tax bracket, you save Rs. 105,000/- plus the return/yield DMMF gives (in June 2007 it was 11.18%). Thus, you wil receive on your Rs. 300,000/- investment Rs. 105,000 + Rs. 33,540 = Rs. 138,540/-, i.e. a 46.18% return on your investment. Please contact us for more information.