Asset management funds cross Rs3tr mark

ISLAMABAD: Asset Management Companies (AMCs) in Pakistan have achieved a historic milestone, with their collective assets crossing Rs3 trillion for the first time. This remarkable growth has been fuelled by strong inflows from individual and corporate investors, driven by attractive profit rates ranging between 20 per cent and 25 per cent in the current financial year.

After reaching Rs2 trillion in January 2024, AMCs sustained their upward trajectory, hitting the Rs3 trillion mark in September and maintaining this momentum through October 2024. Funds offering low-risk profiles and lucrative returns have emerged as a significant draw for investors seeking both stability and profitability.

According to the Mutual Fund Association of Pakistan (MUFAP), the total value of mutual funds stood at Rs3.44 trillion by October’s end. These funds are categorissed into three main types: open-ended funds worth Rs3.35 trillion, voluntary pension funds valued at Rs82 billion, and exchange-traded funds (ETFs) totalling Rs526 million.

Open-ended funds dominate the market, with money market funds alone accounting for over Rs1.3 trillion. Income funds attracted Rs1.2 trillion, while equity market funds drew Rs258 billion. Recent weeks have seen equity funds deliver returns of up to 25 per cent, spurring short-term investments.

Among AMCs, Al Meezan Investment Management Limited leads with Rs611 billion in managed assets, followed by NBP Fund Management Limited at Rs422 billion. MCB Investment Management Limited and HBL Asset Management Limited round out the top four, managing Rs367 billion and Rs320 billion, respectively.

These top-performing AMCs, listed on the Pakistan Stock Exchange (PSX), underscore the sector’s significant growth, reflecting investor confidence and favourable economic conditions. With lucrative returns continuing to attract investments, the asset management industry is poised for further expansion in the coming months.