The stock market is the best investment option available for the large and small investors operating in Pakistan. The Pakistan stock market is carefully monitored and regulated by the Security and Exchange Commission of Pakistan (SECP). The Pakistan stock market follows the code of corporate governance created by the government of Pakistan in the year 2002. It is a preferable option for small investors as they can easily create a safe and sound investment portfolio with the amount of 1 lac to 2 lac rupees.
Karachi stock exchange -100-index is used as a barometer to measure the performance of the Pakistan stock market.Currently,571 companies are listed on the Pakistan stock exchange. All types of financial and managerial information about the listed companies are easily available on official website of the Pakistan stock exchange. Moreover, it is very easy to create a diversified portfolio as number of investment options are available for average investors.
Mutual funds of financial institutions
Mutual funds are another very important investment option for Pakistani investors. In case investors are willing to trade in companies outside the stock market. Open-ended and closed-ended funds are two types of mutual funds present in Pakistan. NAFA Islamic stock fund, Meezan energy funds, and Atlas stock market funds are some of high performing mutual funds of Pakistan.
Mutual funds are preferred by newbie investors as they are professionally managed by qualified portfolio managers. Moreover, investors don’t have to research, analyze and buy shares by themselves. All these activities are performed by skilled managers employed by financial companies. In addition to that mutual funds also help average investors to create diversified and low-risk investment portfolios.
Moreover, mutual funds are less expensive as compared to trading with the individual brokers listed on Pakistan stock exchange. These reduced costs help small investors to save precious capital which can be used to build long-term profitable portfolio. The small investors can easily create a safe and sound investment portfolio with amount of 1 lac to 2 lac rupees
Commodities are another very safe and closely regulated investment option in Pakistan. Pakistan mercantile exchange is the primary body managing the trading of the commodities within Pakistan. Its role is very similar to the Pakistan stock exchange. PMEX manages companies dealing in commodities such as gold, silver, crude oil, copper etc. There are about 138 brokers in the PMEX who are officially registered with the SECP. Pakistan mercantile exchange officially started its operations in 2007.Average investors need a minimum investment of half million rupees to create a diversified portfolio.
Real Estate Investing
Real estate investing involves the ownership, rental or sale purchase, management, of real estate for profit. There is no formal body regulating the real estate market in Pakistan. Real estate market is managed and controlled by few big players operating in the market. Bahria Town PVT Ltd, DHA and Habib rafiq PVT Ltd are three biggest players operating in the Pakistani Real estate market. Real estate market offers high returns for the average investors. However, it is very difficult for small investors to invest in this market as minimum required investment amount is between Rs 1 million to Rs 2 million. Moreover, it is very risky and volatile as it is being controlled by few big players.