Lucky Islamic Money Market Fund 

The Lucky Islamic Money Market Fund made its debut on the 9^th April 2025, setting a Pakistan record by raising PKR50 billion (US$177.82 million) in just one day after the initial offering.

This success can be seen as validation for asset manager Lucky Investments, which changed ownership in December 2024, as the company’s focus “is to provide a 360° complete wealth management solution to its clients,” CEO Mohammad Shoaib shared with IFN Investor. 

Although Pakistan has a population of 240 million, Mohammad said the individual saving rate is very low at around 7%. “This should be somewhere around 30%. Our objective is to ensure that we play our role in increasing the rate of savings and investment in the country,” he noted.

Initial entry for this debut fund offering is PKR5,000 (US$17.77), with subsequent purchases in multiples of PKR1,000 (US$3.55). Investors are required to open an account with the management company (Waqeel) to purchase fund units.

While open to Pakistani citizens and residents as well as foreigners and institutional investors, joint applications are allowed up to four applicants – with holdings registered under the first applicant’s name.

The fund invests in short-term Shariah compliant securities that include corporate Sukuk, cash and near-cash instruments such as deposits with Islamic banks or Islamic windows of conventional banks. The fund maintains at least 10% of its net assets in cash and in the Government of Pakistan’s Sukuk Ijarah with maturities not exceeding 90 days.

This low-risk open-ended fund’s investments are currently limited within Pakistan, but permission can be requested from the central bank and Securities and Exchange Commission of Pakistan to invest abroad. The fund size must always be at least PKR100 million (US$355,500).

The benchmark is a composite: 90% of the three-month Pakistan Interbank Offered Rate for Sukuk and Riba-free instruments (PKISRV rates) and 10% of the three-month average of the highest savings account rates among three ‘AA’-rated scheduled Islamic banks or Islamic windows, as selected by the Mutual Funds Association of Pakistan.

An investor can select growth units as default – where earnings are reinvested automatically into new units – or income units with payouts in cash on monthly, quarterly, semi-annually or annually. The fund offers the flexibility to switch between options upon request.

The fund will conduct at least a 90% distribution of accounting income excluding capital gains, annually. 

 *Disclaimer: The opinions and viewpoints expressed in this Fund Profile do not constitute as recommendations for any funds highlighted. The information presented is not investment advice and should not be treated as such.