10-02-2003, 06:17 PM
Mr. Pervaiz
Today when I logged on to this forum and reviewed my post from last night, it dawned on me that my post could have been taken as a satirical. If it did offend you, I am sorry. I sincerely did not mean to be that way.
With that cleared from my conscience, I will try answer your questions.
<b> 1) Are these 12-15% returns after-tax or pre-tax returns? Are these exclusively capital gains or a composite of gains and dividends? </b>
As you must know, Pakistan has no capital gains tax. The dividends are taxed. We canât say if this will continue in the future. Prime Minister Jamali has extended the tax exemption to capital gains till 2010(I donât remember the year accurately). Will it continue after that? Well, my guess is good as yours. So, to be on the safe side I would say that these figures should be considered before tax.
<b>2) What sort of time horizon are we looking at I mean minimum holding period?</b>
These return projections are long run, 5 to 10 years and more. But we must also consider the historical uncertainties in mind (political, economic etc.). That is why in the shorter run these returns might not realize. But being an optimist, I think everything will work out fine with us.
<b>3) Are you aware of any mutual fund that tracks KSE-100 index. I don't know if this is formally recognized as an index and if one can trade it on KSE board?</b>
I donât understand this question. Do you mean that any Mutual fund has a high correlation with the KSE100 index?
To my knowledge there are 40 open ended mutual funds that can be traded on KSE board. Other than that there are 5 closed ended mutual funds.
I may have missed a few, but roughly these are the figures.
I am no accountant, but my intrests and profession is deeply related to accounts. So I also have the same traits, nice and goodhearted. <img src=icon_smile.gif border=0 align=middle>
Today when I logged on to this forum and reviewed my post from last night, it dawned on me that my post could have been taken as a satirical. If it did offend you, I am sorry. I sincerely did not mean to be that way.
With that cleared from my conscience, I will try answer your questions.
<b> 1) Are these 12-15% returns after-tax or pre-tax returns? Are these exclusively capital gains or a composite of gains and dividends? </b>
As you must know, Pakistan has no capital gains tax. The dividends are taxed. We canât say if this will continue in the future. Prime Minister Jamali has extended the tax exemption to capital gains till 2010(I donât remember the year accurately). Will it continue after that? Well, my guess is good as yours. So, to be on the safe side I would say that these figures should be considered before tax.
<b>2) What sort of time horizon are we looking at I mean minimum holding period?</b>
These return projections are long run, 5 to 10 years and more. But we must also consider the historical uncertainties in mind (political, economic etc.). That is why in the shorter run these returns might not realize. But being an optimist, I think everything will work out fine with us.
<b>3) Are you aware of any mutual fund that tracks KSE-100 index. I don't know if this is formally recognized as an index and if one can trade it on KSE board?</b>
I donât understand this question. Do you mean that any Mutual fund has a high correlation with the KSE100 index?
To my knowledge there are 40 open ended mutual funds that can be traded on KSE board. Other than that there are 5 closed ended mutual funds.
I may have missed a few, but roughly these are the figures.
I am no accountant, but my intrests and profession is deeply related to accounts. So I also have the same traits, nice and goodhearted. <img src=icon_smile.gif border=0 align=middle>