Advisory vs Mutual Funds
Should you pool your money in a mutual fund or own individual stocks directly? We break down control, costs, and transparency.
| Metric | InvestKaar Advisory | Mutual Funds / ETFs |
|---|---|---|
| Direct Ownership | Yes. You hold physical shares in your CDC sub-account. | No. You hold pool units; the fund owns the shares. |
| Fee Structure | Transparent fixed subscription fee. No performance cut. | Annual expense ratios (often 2-4% hidden fee structures). |
| Portfolio Control | High. Customize sectors or skip companies you dislike. | None. You pool funds with others and follow fund manager decisions. |
| Tax Efficiency | Optimized on your personal CGT bracket. | Subject to mutual fund taxation levels. |
Why not just buy an index fund in Pakistan?
An index fund tracks the KSE 100 or KMI 30 passively. While simple, the PSX has unique challenges: cyclical commodities, underperforming public enterprises, and high corporate governance risks. Our research-driven stock advisory screens out corporate noise, offering downside protection that generic index funds cannot match.