ISLAMABAD  - The Securities and Exchange Commission of Pakistan (SECP), under its flagship investor awareness programme ‘Jamapunji’, conducted a seminar on mutual funds and voluntary pension system (VPS) for the employees of the Sustainable Development Policy Institute (SDPI).

Senior SECP officers led the interactive session with participation from industry experts. They elaborated on the rights of investors, potential benefits of investing in mutual funds and VPS through qualified fund managers, the role of trustees and highlighted the risks involved for the investor when opting for available mutual funds and VPS investment options.

The SECP’s senior officer explained the regulations governing mutual funds and VPS and how the SECP had contributed to advancement of the financial sector through supporting innovative product development while taking necessary measures to better safeguard interests of the investors.

Giving product background, differences between conventional government pension schemes and VPS were explained. Similarly, differences between Sharia-compliant funds and conventional funds, withdrawal conditions and risk profile switch options during the life of the product were discussed.

In addition to providing clarity on fee structures and the importance of monitoring net asset value (NAV) through periodic account statements and the SMS service provided by fund managers, post-retirement income features and potential tax benefits were also explained.