Mutual Fund Industry Adds Rs. 520 Billion in One Year - ProPakistani

Pakistan’s mutual fund industry recorded slower asset growth in 2026, with assets under management (AUM) increasing by 12.4 percent year-over-year to Rs. 4.72 trillion by the end of September, compared with much stronger growth in the previous two years.

According to data released by the Mutual Funds Association of Pakistan (MUFAP), the industry’s assets rose by Rs. 520 billion from Rs. 4.20 trillion in September 2025.

The increase was significantly lower than the Rs. 1.15 trillion added between September 2024 and September 2025, when assets grew from Rs. 3.05 trillion to Rs. 4.20 trillion.

The industry had recorded an even larger increase of Rs. 1.23 trillion between September 2023 and September 2024, as total assets expanded from Rs. 1.82 trillion to Rs. 3.05 trillion.

The latest figures indicate a slowdown in asset accumulation, although the industry’s overall investment base continues to expand.

Money market and equity funds continued to experience negative growth, according to the report. A significant number of investors also continued to redeem dividends, contributing to slower growth in asset values managed by fund companies.

The report noted that mutual fund returns had surged to as much as 10 percent per month, translating into substantial income for investors with larger investments.

MUFAP data shows that asset management companies (AMCs) allocated the largest share of their investments to bank and development finance institution (DFI) deposits and other investment instruments.

These holdings stood at approximately Rs. 2.74 trillion, accounting for 58 percent of the industry’s total assets.

Government securities accounted for around 17 percent, or Rs. 795 billion, while equity market investments stood at Rs. 677 billion, representing approximately 14 percent of the total. Investments in other avenues amounted to Rs. 567 billion, or around 12 percent.

The distribution shows the industry’s substantial exposure to banking instruments and government securities, while a comparatively smaller share is invested in equities.

The “Others” investor category accounted for the largest share of investments at Rs. 2.19 trillion, or approximately 46.3 percent of total assets.

Individual investors held Rs. 2.04 trillion, representing 43.2 percent of the industry’s assets.

Banks and financial institutions accounted for Rs. 129.15 billion, while provident funds held Rs. 165.07 billion. Pension funds had investments of Rs. 154.75 billion, and gratuity funds accounted for Rs. 44.62 billion.

Open-end funds dominated the industry, with assets of Rs. 4.55 trillion. Voluntary Pension Schemes (VPS) accounted for Rs. 155.49 billion, while employer pension funds held Rs. 7.41 billion. Exchange-traded funds (ETFs) remained a comparatively small segment, with investments of Rs. 6.94 billion.

According to MUFAP, asset management companies offer 25 major funds covering money markets, equities, government securities, and retirement savings.

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