Pakistani Rich vs Non-Rich
If you look at all the rich families in Pakistan, what is one thing they all have in common? They all own assets. Whether it's commercial property, agricultural zameen, or companies – all rich Pakistanis own assets.
When is the last time you heard of a salaried person being an arab-patti? Never. A salaried person's money generation is tied to his time which is limited. Meanwhile the asset owner's money generation is tied to his owning the asset producing value. This means he makes money in his sleep by virtue of just being an owner.
Ways to Wealth
The fact is there are only two ways to become wealthy in this world: create something of value or own something of value. Successful founders and entrepreneurs create immense value – e.g. Jeff Bezos with Amazon, Bill Gates with Microsoft, Elon Musk with Tesla etc.
Not everyone can create – it takes market knowledge, financial resources, emotional strength, leadership qualities and a strong team.
But everyone can OWN.
In Pakistan, currently only the existing rich are owners.
The rich in Pakistan tend to stay rich because assets are passed down generation after generation. The non-rich on the other hand continue to have to labor their entire life to make ends meet.
Becoming Rich in Pakistan
What if every Pakistani could become an asset owner and secure their financial future?
Fortunately, there is a way. Let's look at the US. In the US, many people invest part of their salary every month in the US market (known as the S&P 500). Even though most people in the US earn their living through a salary, they build wealth overtime (10+ years) by investing into the market and becoming asset owners of the best US companies.
Pakistanis can also secure their financial future by investing consistently in the market over the long-term. This can be achieved through mutual funds. Mutual funds offer Pakistanis the opportunity to become asset owners. Equity mutual funds invest in public companies while money market and income funds invest in safer financial assets. In Pakistan, the best equity funds have returned a mid double-digit return historically while the best safe funds have returned a high single-digit return – both very good return and superior to any other investment options.
Equity mutual funds invest in all of Pakistan's best public companies. The Pakistani equity market has been one of the best performing market in the world in the past 10 years returning 14.6% every year on a compounded annual basis (simplistically means on average). This is even better than the US market which only returned 12.3% during that period. Investment should always be looked at from a long-term perspective.
Pakistan is still a developing market and hence is a high growth investment opportunity. There are many top-tier international investors seeking high returns investing in publicly-traded Pakistani companies. Pakistan has some very high quality companies trading at attractive prices – a view shared by one of Labeeb's advisors, Arif Qardri (CFA), former Global Fund Manager and Investment Committee Member at $USD 700 Billion Abu Dhabi Sovereign Wealth fund.
The best way to invest in Pakistan is to invest in top-tier equity or safe mutual funds consistently over the long-term.
Use Labeeb to Build Wealth
Labeeb is developed by world-leading investors for Pakistan and features only the best Islamic mutual funds for investment. Our mission is to promote smart investing in Pakistan and provide a platform which makes smart investing easy and convenient.
Join hundreds of other Pakistanis and sign up for the waitlist for the much awaited launch of Labeeb!
Check out our Beginner Investing Guide which details the smart way to invest.
We want every Pakistani to be an asset owner to secure their financial future.
