Hello,
What options are available to invest say $10,000 (CDN) in Pakistan where the yield is high? I’ve heard purchasing certificates has high returns. Any information would be really helpful.
Re: Personal Investments in Pakistan
equity mutual fund units. pakistani funds performed among the best in the world. google arif habib investments
Re: Personal Investments in Pakistan
Re: Personal Investments in Pakistan
equity mutual fund units. pakistani funds performed among the best in the world. google arif habib investments
Thanks for the link. Are there more safer options available than mutual funds/stock market?
Re: Personal Investments in Pakistan
you can directly buy the government securities.but then return would not be that great. alternatively you can invest in real estate, but only if you have the patience to wait at least for upto 5 years or so.
Re: Personal Investments in Pakistan
you can directly buy the government securities.but then return would not be that great. alternatively you can invest in real estate, but only if you have the patience to wait at least for upto 5 years or so.
what is the rate these days for government securities.
Re: Personal Investments in Pakistan
9-10%
Re: Personal Investments in Pakistan
You want to take risk then buy shares. PSO would be fine. Return could be high but there is no guarantee.
I believe no investment on average in long run could give you better secure return in Pakistan then 'Defence Savings Certificates' (until now, cant say about future).
Thus, if you are looking for secure investment, than go for Defence savings certificates. Return on Defence savings certificates are quite good,but there is hitch.
Though you can encash your DS certificates anytime, you have to keep Defence Saving Certificates for 10 years to get good return, else return would be low.
Another thing is that, after 10 years you should cash in, else you would lose out.
Third thing is that, interest rates on DSC changes with time and you would tie yourself to the rate what was applicable at time you purchased the certificates. Well, if rates go down or up than you can encash your certificates and reinvest, but as I mentioned earlier, encashing the certificates early would mean low overall interest rate ... so, you have to evaluate your return when you cash certificates earlier to reinvest.
Fourth thing is that, from what I know, you will be paying 10 percent of your return in tax whenever you encash your certificate.
Fifth thing is that, even though interest is high, you could lose out due to rupee devaluation ... but I believe even if one takes devaluation into account, your return would be higher than investments in Canadian dollars (in most cases).
Present compound interest rate on DSC ... if you keep the certificates for 10 years is: 10.84 percent
For instance, if you invest Rs 100,000 than after 10 years you will get Rs 280,000. This goes as follow: Encashment for completed years for every Rs.100,000 will be:
After 1 year but before 2 year: Rs. 106,000
After 2 year but before 3 year: Rs.113,000
After 3 year but before 4 year: Rs.121,000
After 4 year but before 5 year: Rs.131,000
After 5 year but before 6 year: Rs.144,000
After 6 year but before 7 year: Rs.160,000
After 7 year but before 8 year: Rs.180,000
After 8 year but before 9 year: Rs.205,000
After 9 year but before 10 year: Rs.238,000
After 10 years: Rs 280,000
As far as I know, effective return would be Rs 262,000 after paying Rs 18,000 withholding tax on Rs 180,000 profit.
Re: Personal Investments in Pakistan
Instead of locking yourself at fixed rates and keeping in mind unpredictability of pakistan govt, i would advise against long term investment in defense saving certificates.
Investment in reputed mutual funds, is a relatively safer avenue.
Re: Personal Investments in Pakistan
how are arif habib mutal funds purchased? through banks (eg. soneri)
Re: Personal Investments in Pakistan
You can invest your money by buying properties in pakistan. There are certain websites of properties where you can search what to buy and where to buy??
Re: Personal Investments in Pakistan
how are arif habib mutal funds purchased? through banks (eg. soneri)
Investing 10,000 cad in real estate is just not right. what good property will you get for around 10 lacs. small cars in Pakistan costs more than that. However Pakistan mutual funds industry is a growing industry but has lack of awareness. There is a lot of money to earn when investing in funds however, for true high returns you need to invest in equity (Stock fund). the risk is high but returns are high aswell. On average Pakistan equity funds have been giving 23% in the last 10 years (Including the 2008 crisis). However if you are not in the comfort zone when investing in equity then invest around 30% in equity and remaining in income funds. There is a fund that does just that known as asset allocation :)
Re: Personal Investments in Pakistan
Investing 10,000 cad in real estate is just not right. what good property will you get for around 10 lacs. small cars in Pakistan costs more than that. However Pakistan mutual funds industry is a growing industry but has lack of awareness. There is a lot of money to earn when investing in funds however, for true high returns you need to invest in equity (Stock fund). the risk is high but returns are high aswell. On average Pakistan equity funds have been giving 23% in the last 10 years (Including the 2008 crisis). However if you are not in the comfort zone when investing in equity then invest around 30% in equity and remaining in income funds. There is a fund that does just that known as asset allocation :)
Are you sure abt 23 pct return over last 10 yeafs? Any links?
Re: Personal Investments in Pakistan
Are you sure abt 23 pct return over last 10 yeafs? Any links?
I didnt say 23pct return, i said an average of 23% over the last 10 years, some years it was more some years it was down like in 2008. so overall average for the last 10 years has been around 23-24% (talking about ubl fund managers here). I think other big AMCs wouldve given good returns aswell (but not sure if that would be over 10 years or not).
Re: Personal Investments in Pakistan
I didnt say 23pct return, i said an average of 23% over the last 10 years, some years it was more some years it was down like in 2008. so overall average for the last 10 years has been around 23-24% (talking about ubl fund managers here). I think other big AMCs wouldve given good returns aswell (but not sure if that would be over 10 years or not).
When folks talk about returns, they talk about annual compounded returns or total returns over a period of time. What is the annual rate of return over the last 10 yeafs
Re: Personal Investments in Pakistan
When folks talk about returns, they talk about annual compounded returns or total returns over a period of time. What is the annual rate of return over the last 10 yeafs
Average returns is a main KPI. total returns (Being compounded aswell) for last 3 years were 300%, you can imagine that it would be way more than that for the last 10 years.
Re: Personal Investments in Pakistan
total returns (Being compounded aswell) for last 3 years were 300%, you can imagine that it would be way more than that for the last 10 years.
Why would I imagine that? The first thing they teach you is not to project returns into the future based on what happened in 3 years. Same principle applies here. Don't project into the last 10 years what happened in the last 3 years.
it could very well be that returns in last 10 yeafs is much higher than last 3 yeafs. In fact that is indeed the case here. Since I checked. But it is alarming that as a financial advisor, you would make such statements.
Re: Personal Investments in Pakistan
Why would I imagine that? The first thing they teach you is not to project returns into the future based on what happened in 3 years. Same principle applies here. Don't project into the last 10 years what happened in the last 3 years.
it could very well be that returns in last 10 yeafs is much higher than last 3 yeafs. In fact that is indeed the case here. Since I checked. But it is alarming that as a financial advisor, you would make such statements.
I didnot project anything, im just stating clear facts. Our UBL Fund managers stock advantage funds have given an average of 24% in the last 10 years. It seems that you are not making positive comments but rather been negative. Please also state the good returns Pakistani markets have made. Ofcourse there are people who lost millions but there are those who made millions. Stocks is very volatile and only advisable to those that have high risk tolerance and making long term investments. We donot recommend stocks to those who have low risk and making medium term investments. Also about making statements i provide full disclosure and we encourage people to invest and save, rather than take their money and forget about them. if the markets are going down we suggest to convert the funds to another. Because of all these services and good performance we have received AM2+ rating which is the highest quality management award after AM1 (no AMC in Pakistan can get that in another 2-3 years due to high requirements, but we hope to be that someday aswell)
Please be productive rather than being negative. Be negative but be balanced by potraying the goods aswell.
Thanks and have a nice day.
Re: Personal Investments in Pakistan
I didnot project anything, im just stating clear facts. Our UBL Fund managers stock advantage funds have given an average of 24% in the last 10 years. It seems that you are not making positive comments but rather been negative. Please also state the good returns Pakistani markets have made. Ofcourse there are people who lost millions but there are those who made millions. Stocks is very volatile and only advisable to those that have high risk tolerance and making long term investments. We donot recommend stocks to those who have low risk and making medium term investments. Also about making statements i provide full disclosure and we encourage people to invest and save, rather than take their money and forget about them. if the markets are going down we suggest to convert the funds to another. Because of all these services and good performance we have received AM2+ rating which is the highest quality management award after AM1 (no AMC in Pakistan can get that in another 2-3 years due to high requirements, but we hope to be that someday aswell) Please be productive rather than being negative. Be negative but be balanced by potraying the goods aswell. Thanks and have a nice day.
This is not about being positive or negative. Just pointing out facts.
Earlier you said Pak market up an average of 23 pct per year. In this post u say ur find up average of 24 pct per year. Along with pal mkt. There is simply no way of verifying this info. I can only go by the statements u made.
And I repeat. You asked us to imaging what the 10 yr returns would be based on last 3! And I pointed out its irrationality.
Now in this post u say when market goes down u move investors to other funds. Sound like market timing. And that too a poor mkt timing. Moving folks from funds AFTER they go down.
When I select a financial advisor , these are red flags.
And I would run away. As fast as I can.