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My 80:20 Investment Strategy: Beating Inflation and Risk-Free Rates

  In an economic environment where inflation and risk-free rates, such as T-bills and bank savings accounts, hover around **10.5%**, many investors struggle to generate real wealth growth. My **80:20 investment strategy** is designed to **outperform inflation** and secure superior returns while maintaining a balanced risk profile. By following this structured approach for a minimum of **three years**, investors can achieve consistent growth and financial security. Breakdown of the 80:20 Investment Strategy -80% Allocation: Invested in Cash Funds and Income Funds, targeting an annual return of 10.5%. -20% Allocation: Invested in Stock Funds, aiming for a minimum annual return of 20%. This combination allows investors to benefit from steady fixed-income growth while leveraging the stock market’s potential for higher returns. Investment Growth Projection (Annual Compounding) Let’s assume an investor starts with Rs. 100 under this strategy: 80% Allocation – Cash & Income Funds Inve...
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Earn expected and risk free 22%. You don't need expertise.



Pakistan is one of the countries where access to financial services for a common man is very limited. More than 60% of our population are unbanked and/or under the line of market penetration. Where as mutual funds managed to penetrate among salaried class only for tax rebate benefit. Hence, I am not surprised to see total AUM of industry is only 5% of bank's deposits.  

What is mutual fund? 

Mutual fund is a pool of money from different investors with similar purpose. The fund is managed by financial experts to achieve competitive profit and distribute equally among all investors. 

Are they risky?

 funds are always subject to market risk. Past performances doesn't guarantee the future performance. However, there are also fixed income product available at many asset management companies where an investor earns fixed return over certain period of time. 

Is there a holding period requirement?

No, the beauty of mutual fund is the liquidity. Funds can be withdrawn anytime with profit.

What is taxation rate in mutual fund?

There is a capital gain tax applicable which is 10% to 12.5% only depending on which fund is chosen. In comparison with banks where WHT is 15%, mutual fund is the most preferred avenue in liquid market. 

Do I need an advisory for investment?

Yes, there are certified financial advisors available who can help you with customized solutions. 

What is minimum amount to open up an account?

Every AMC has different requirements but generally PKR 5000 is the least amount. 

Can I open up an account with CNIC only?

Yes. 

What if I need more information?

For more information you can reach out through comments box. 

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My 80:20 Investment Strategy: Beating Inflation and Risk-Free Rates

  In an economic environment where inflation and risk-free rates, such as T-bills and bank savings accounts, hover around **10.5%**, many investors struggle to generate real wealth growth. My **80:20 investment strategy** is designed to **outperform inflation** and secure superior returns while maintaining a balanced risk profile. By following this structured approach for a minimum of **three years**, investors can achieve consistent growth and financial security. Breakdown of the 80:20 Investment Strategy -80% Allocation: Invested in Cash Funds and Income Funds, targeting an annual return of 10.5%. -20% Allocation: Invested in Stock Funds, aiming for a minimum annual return of 20%. This combination allows investors to benefit from steady fixed-income growth while leveraging the stock market’s potential for higher returns. Investment Growth Projection (Annual Compounding) Let’s assume an investor starts with Rs. 100 under this strategy: 80% Allocation – Cash & Income Funds Inve...
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