NATIONAL INVESTMENT TRUST LIMITED (NITL) – GENERAL FAQs

Introduction:

National Investment Trust Limited (NITL) is the pioneer Asset Management Company in Pakistan, established in 1962 under the sponsorship of the Government of Pakistan. NIT is managing 14 funds with total net assets under management of approximately Rs. 210 billion, serving the needs of around 55,521 Unit holders as of March 31st, 2025.

1. 1. What is an Asset Management Company (AMC)?
   An AMC is a firm that pools money from investors and invests it in diversified portfolios such as stocks, bonds, and other securities. It is managed by professional fund managers with the goal of achieving returns for investors.
2. 2. What is a Mutual Fund?
   A Mutual Fund is an investment vehicle that collects money from multiple investors and invests it in a diversified portfolio of securities. The gains or losses are shared by all unit holders in proportion to their investment.

1. 6. What is a Benchmark?
   A benchmark is a standard index used to compare the performance of a mutual fund. For example, KSE-100 index may be used as a benchmark for equity funds.
2. 7. What is Sales Load?
   Sales Load is a fee or commission charged when you buy or sell units of a mutual fund. NIT offers many funds with zero or low load, making it investor-friendly.
3. 8. How are Mutual Funds Regulated?
   Mutual funds in Pakistan are regulated by the Securities and Exchange Commission of Pakistan (SECP) to ensure transparency, investor protection, and compliance with applicable laws.
4. 9. Who is the Shariah Advisor?
   For Shariah-compliant funds, NIT appoints a qualified and SECP-approved Shariah Advisor who ensures that all investments comply with Islamic principles.

1. 11. Can I Invest in Any Currency?
   NIT Funds are currently available for investment in Pakistani Rupees (PKR) only.
2. 12. How are Islamic Funds Different from Conventional Funds?
   Islamic Funds invest only in Shariah-compliant securities and exclude sectors like interest-based financial instruments, unlike conventional funds.
3. 13. Who is the Trustee?
   Each NIT fund has a designated Trustee, typically a reputable bank, that safeguards the assets of the fund and ensures operations are carried out in the best interest of unit holders.
4. 14. Who is the Auditor?
   NIT appoints independent external auditors, approved by SECP, who audit the financial statements of the funds annually.
5. 15. Are NIT Funds Rated by a Credit Rating Agency?
   Yes, NIT Funds are rated by reputable credit rating agencies in Pakistan, which assess the creditworthiness and risk profile of each fund.