Managed Funds under Bank management

FCS co-ordinates mobilization of Islamic funds of individuals as well as corporations by placing their funds with various Islamic financial institutions. These investments are for various maturities like 3, 6, 9 months and beyond. The profits on these investments are distributed at the end of the year after the financial accounts of the Bank are finalized and approved by the Board of Directors. The profits are distributed after consolidating all the profits and losses of the Bank on the investments and financing in general. It should be noted that over the years the profits declared by the Bank range from 5.50-7.50% p.a. on deposits of 360 days and have been better than the interest given by the conventional banks. These investments can be encashed at any time.

Trade Portfolio under Bank management

Savings of individuals and corporations mobilized and pooled for specific purposes and placed under a 'specialized Fund' for subsequent use in short term trade financing under Musharakah and Murabaha modes of Islamic finance with the traders. Profits are distributed at half yearly intervals. FCS has the expertise and is instrumental in creating such a Fund with good returns to the investors. These Funds are safe for investments as before financing, due diligence is exercised and strict credit appraisal techniques are applied in selecting transactions for financing.

The profits are distributed based on the performance of the transactions within the scope and framework of the specific fund i.e. unlike the Managed Funds where total profits of the Bank are consolidated while distributing profits.