Abstract:
Mutual fund has not developed in Pakistan as it is compared with
the international market that’s why investor feels reluctant,
because of their poor knowledge in the field of mutual funds in
term of their structure and regulation. Till now in Pakistan
investor still prefer the traditional modes of investments as
going in real estate, fixed deposits etc. There are different
financial institutions and asset management companies which are
working in Pakistan under the umbrella of Mutual Funds
Association of Pakistan (MUFAP), governed by SECP. They are
providing assistance to their clients but still there is a huge
gap in the Pakistani market that is still need to be fulfilled.
Companies working under the MUFAP are more or less making their
investment strategy in stock exchange market as it is very well
known investment option in the capital market. There is an
another emerging market known as Pakistan Mercantile Exchange
which has not been fulfilled to its potential as it is much more
safer then to the stock exchange market like if the economy goes
against the portfolio options then still the investor will not
bear as much loss if it is compared to the investment made in
the stock exchange market. As by looking over the economy of
Pakistan, the main capital providers are either the banks or few
of the companies who are the capital providers in term of the
investment perspective. In this study we are offering a frame
work to Faysal bank to become a pioneer investor in the
commodity market while making their portfolio investment in
Pakistan mercantile exchange by offering commodity fund which is
a type of mutual funds. This project is proposing a series of
recommendations in accordance to Internal as well as External
