Capital preservation funds are schemes which aim to preserve your principal while offering potentially high returns, through dynamic allocation. The dynamic asset allocation is aimed at providing higher returns through participation in Equities, while aiming to protect downside risk of capital through participation in Income/Money Market instruments.
Meezan Capital Preservation Plan –IV (MCPP-IV), is another plan based on the Meezan Strategic Allocation Fund II (MSAF-II). Based on CPPI investment strategy, MCPP-IV will enable investors to benefit from potentially high returns of a rising stock market while preserving your capital in a sliding market by investing in sovereign income or money market funds.
This is the fourth in series of Islamic capital preservation plans in Pakistan adding a new dimension to address investor’s need for capital preservation.
The objective of Meezan Capital Preservation Plan-IV (MCPP-IV) is to earn a potentially high return through dynamic asset allocation between Shariah Compliant Equities and Shariah Compliant sovereign income or money market based collective investment schemes (CIS), while providing capital preservation upon initial maturity of the allocation plan.
The investment objective of the plan shall be achieved through the Constant Proportion Portfolio Insurance (CPPI) methodology.
Risk Profile/Risk of Principal Erosion: Plan Specific (Medium to High)
*Investors are encouraged to consult their Investment advisors prior to investing in the product.
