UBL Fund Managers, the Pakistan-based fund management and advisory firm, has launched an investment scheme that aims to deliver as much as 100 per cent exposure to the stock market while getting 100 per cent principal protection. 

The UBL Principal Protected Fund - I is an open-ended fund of funds scheme based on the Constant Proportion Portfolio Insurance scheme, a world-renowned methodology that allocates amounts between equity and money market mutual funds on a daily basis. Allocation to equity funds increases as the stock market grows, while allocation to money market funds increases if the stock market declines. The scheme has a fixed duration of two years and will be open for subscription for limited period during the initial public offering after which it will be closed for any further subscriptions. UBL presently manages some Rs38 billion ($744 million) on behalf of its clients.

"World over, the stock market is considered to be a time tested means of building wealth in the long term. In Pakistan as well, the stock marekt has outperformed other forms of investments, such as gold and national savings schemes over the past 10 years. This scheme gives the common man an easy and smart way to investment in the stock market," said Mir Muhammad Ali, chief executive of UBL Fund Managers. 

The subscription period began 2 December and ends on 27 December 2011.