Pension Funds

Pension Funds are managed by renowned Asset Management Companies (AMCs). Kifayah Investment Management Limited provides a simple way to invest in the Pension Fund. Any Pakistani can open an Individual Pension Account (IPA) with an AMC of their choice and we will facilitate the investment process.

Investment frequency

Investment could be made monthly, annually or at any other frequency.

Tax Credit:

Each investment is eligible for Tax credit, so investors could save up to 20% of their tax liability by investing to full limit. As this is a huge benefit, investment amount is restricted to 20% of taxable income in a year by tax laws (please click here for details).

Taxation of Pension Fund:

The Fund is not charged with any taxes throughout the investment tenure and therefore tax free gains are accumulated in IPA over the period.

Modes of contribution:

Contribution to IPA could be made by multiple sources ie. the client may:

Contribute himself;
May ask his employer to transfer his balance in employer provident Fund to his Individual pension account; or (please click here for detail)
Be a part of a scheme launched by his employer to pay to IPA of an employee instead / or in addition to maintaining an in house Provident Fund. (please click here for detail)

Change of Pension Fund Manager

In case performance of an AMC is not satisfactory the client may change Fund Manager without redeeming investment.

Allocation scheme:

The client has an option to select allocation scheme from low risk to the high risk levels. Please refer to respective Fund features for detail. Our team will provide a detailed guideline so that our clients chose the most beneficial investment allocation.

Change in investment Allocation:

The allocation could be changed at any time twice in a year.

Retirement:

Retirement could be filed anytime between 60 to 70 years of age.

On retirement up to 50% of accumulated balance could be withdrawn. In case of death the client’s nominees or in case of disability before retirement the client may withdraw up to 50% upfront tax free. The remaining amount will used to make pension payments.

Taxation of Pension payments:

Pension payments including principal and profits are exempt from tax.

Free Takaful:

AMCs also offer free Takaful coverage and refer to respective fund features for detail.

Exit from Scheme:

Amount accumulated in IPA could be withdrawn at any time, however the amount of tax credit obtained is to be refunded, calculated at average tax rate of last three years.

Kifayah Investment management is an authorized distributor for Pension Funds under management of Al Meezan Investment Management.

Investments in Pension Fund through our platform gives the following advantages at no cost to our investors.

Unbiased advise;
Tax Credit;
Choice of multiple funds;
Access to our research.
Free for investors (our services fee is paid by respective fund manager).

Fund Details

Fund Manager	Al Meezan Investment Management Limited
Fund Name	Meezan Tahaffuz Pension Fund
Scheme Type	Open-end Islamic Voluntary Pension Scheme
Date of Inception	28-Jun-07
Fund Size – June, 2019	Rs. 9,008 Million
Objective of the scheme	To provide participants a regular Halal income at the time of retirement
Allocation Schemes	Six Asset Allocation Schemes:
	1. High Volatility
	2. Medium Volatility
	3. Low Volatility
	4. Lower Volatility
	5. Life Cycle Plan
	6. Customized Allocation
Minimum Investment Amount	Rs.1,000
Management Fee	1.50%
Entry Load	3%
Exit Load	Nil

Fund Performance Highlights

Fund Manager	Fund Name	Equity Sub Fund*	Debt Sub Fund**	Money Market Sub Fund**
Al Meezan Investment Management Limited	Meezan Tahaffuz Pension Fund	17.26%	9.97%	9.95%

*10 year CAGR (FY10-FY19)

** 3-month returns

Pension Funds

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