Idle cash is an opportunity lost. KASB Liquid Fund (KLF) seeks to target institutional and retail investors with surplus liquidity and/or interim cash. It is therefore a low risk, cash management alternative to bank deposits which is expected to offer higher and tax efficient returns to the investors over a period of time. KASB Liquid Fund is an open-ended fund allowing investors further investments and full or partial redemption at any point in time.

Investment Objective

The Fund seeks to maximise current income, consistent with low levels of risk and high liquidity.

The fund is ideal for

• Investors seeking a parking opportunity for their short-term investments which yields competitive returns.
• Risk-averse investors looking for current income and seeking preservation of investment

Key Features

The product offers a unique value proposition given the following:

• Money market funds have historically given a sustainable high return as compared to bank saving deposits;
• The income is tax free under government regulations as compared to bank deposits and other fixed income investments;
• There is no time restriction. The investors can withdraw their investment any time, anywhere nationwide;
• KASB Liquid Fund will primarily invest in short term investments with strong credit rating;
• The units can be pledged as collateral for bank borrowing;
• Investment in KASB Liquid Fund can be started with as low as Rs. 10,000/-. After the initial investment, further investments can be made into the Fund with as low as Rs. 1,000/-; and
• KASB Liquid Fund will be listed on the Karachi Stock Exchange.

Summarised Term Sheet

Where will KLF invest its money?

The Fund will primarily invest in low duration, liquid investments including money market and other debt instruments, as well as fixed income transactions in the capital market.

Is KLF a bank deposit?

KLF is not a bank deposit. KLF is a pool of money of different investors. By investing in KLF units, an investor buys a portion of the fund.