Lucky Investments launches Shariah-compliant capital-protected fund

Lucky Investments Limited has launched Lucky Islamic Capital Protected Fund Plan I, a Shariah-compliant investment plan designed to generate competitive returns through dynamic asset allocation while providing capital protection at maturity.

The plan was launched on October 8, with subscriptions running from October 9 through October 30. It has a two-year duration and a medium risk profile, according to Lucky Investments.

Lucky Investments’ product page lists an expected annual return of 10.75% to 11.25%.

How does the capital-protected fund work?

Lucky Islamic Capital Protected Fund Plan I dynamically allocates money between Shariah-compliant equities and money-market or fixed-income instruments. Its term sheet says capital is protected at maturity, while the offering document makes clear that the protection comes from the investment structure rather than a guarantee by Lucky Investments or the trustee.

The offering document says principal protection applies when units are held until completion of the capital-protection period and is not available beforehand. The plan uses a Constant Proportion Portfolio Insurance, or CPPI, methodology to dynamically allocate investments between lower-risk and equity assets.

The minimum initial investment is PKR 5,000, with subsequent investments starting from PKR 1,000.

The Key Fact Statement lists a front-end load of up to 3% for direct investments through Lucky Investments and up to 1.5% through its or a third party’s digital platform. Early redemption can be subject to a contingent load based on the net loss incurred.

Mohammad Shoaib, CEO of Lucky Investments, said the plan was intended for investors seeking growth while remaining mindful of capital protection.

“This Plan is designed to address that need through a disciplined and dynamic asset allocation approach,” Shoaib said.

He said Lucky Investments would continue developing products for investors with different objectives, risk profiles and financial horizons.

The launch expands the company’s range of Shariah-compliant mutual fund and pension products across money market, income, equity, dividend yield, energy, pension and capital-protected strategies.