Pakistan’s mutual fund industry grew more slowly over the past year, with assets under management rising 12.4 percent to Rs4.72 trillion by the end of September. Data from the Mutual Funds Association of Pakistan (MUFAP), the industry body for mutual funds, show the sector still expanded, but far less sharply than in the previous two years.
Assets rose by Rs520 billion from Rs4.20 trillion in September 2025. That gain was much smaller than the Rs1.15 trillion added between September 2024 and September 2025, when assets climbed from Rs3.05 trillion to Rs4.20 trillion, and the Rs1.23 trillion rise from Rs1.82 trillion to Rs3.05 trillion between September 2023 and September 2024.
Where the money is invested
Asset management companies (AMCs)—firms that run mutual funds—kept most of their portfolio in bank and development finance institution (DFI) deposits and related instruments. Those holdings were about Rs2.74 trillion, or 58 percent of total assets.
Government securities accounted for roughly 17 percent, or Rs795 billion. Equity market investments stood at Rs677 billion, about 14 percent of the total. Other avenues held Rs567 billion, or around 12 percent. The mix points to heavy exposure to banking instruments and government paper, with a smaller share in stocks.
Who holds the assets
The “Others” investor category was the largest slice at Rs2.19 trillion, or about 46.3 percent of assets. Individual investors held Rs2.04 trillion, or 43.2 percent. Banks and financial institutions accounted for Rs129.15 billion, provident funds Rs165.07 billion, pension funds Rs154.75 billion, and gratuity funds Rs44.62 billion.
Open-end funds dominated, with Rs4.55 trillion in assets. Voluntary Pension Schemes (VPS)—retirement savings products individuals can join—held Rs155.49 billion. Employer pension funds had Rs7.41 billion, and exchange-traded funds (ETFs) remained a small segment at Rs6.94 billion. MUFAP said AMCs offer 25 major funds across money markets, equities, government securities, and retirement savings.
Pressure on returns and fund types
Money market and equity funds continued to post negative growth. A significant number of investors kept redeeming dividends, which weighed on the value of assets managed by fund companies. The data also noted that mutual fund returns had earlier surged to as much as 10 percent a month, delivering substantial income for investors with larger holdings.
Timeline: what has happened so far
- September 2023: Industry assets stood at Rs1.82 trillion.
- September 2024: Assets reached Rs3.05 trillion after a Rs1.23 trillion yearly rise.
- September 2025: Assets climbed to Rs4.20 trillion, up Rs1.15 trillion year on year.
- September 2026: Assets hit Rs4.72 trillion, up 12.4 percent and Rs520 billion from a year earlier.
Aasan alfaaz mein
Pakistan ke mutual fund industry ke assets September tak Rs4.72 trillion ho gaye hain. Ek saal mein yeh Rs520 billion barhe, lekin pehle do saalon ki tarah tez growth nahi thi. Ziyada paisa banks aur government securities mein laga hua hai. Jo log funds mein invest karte hain, unhein yeh samajhna chahiye ke growth ab slow hai aur kuch funds mein pressure bhi hai.
