Pakistan mutual fund assets rise 16% as investors pour PKR 670 billion into funds

Pakistan’s mutual fund industry posted strong growth in fiscal year 2025-26, with assets under management (AUMs) rising 16.1% year on year as investors committed a net PKR 670 billion to professionally managed investment products, reflecting growing confidence despite short-term market volatility, according to a report by Al Habib Capital Markets.

The report said total industry AUMs reached PKR 4.37 trillion at the end of June 2026. Although assets declined 2.98% from the previous month due to month-end portfolio rebalancing and market movements, they remained significantly higher than a year earlier.

Equity funds emerged as the industry's fastest-growing segment, with assets increasing 4.8% month on month to PKR 765 billion in June and surging 57.9% from a year earlier. Investors allocated PKR 280 billion to equity funds during FY2025-26, signaling stronger confidence in Pakistan’s stock market and a growing preference for long-term investment opportunities.

According to the report, the benchmark KSE-100 Index rebounded 3.64%, or 6,338 points, in June as easing geopolitical tensions improved investor sentiment.

Al Habib Capital Markets said industry fundamentals remained resilient despite market fluctuations, with 16 of the country's 21 listed asset management companies (AMCs) reporting year-on-year growth in assets under management, highlighting sustained investor participation.

The report said the industry's five largest asset managers continued to dominate the market, collectively accounting for more than 54% of total assets under management.

Al Meezan Investments remained the largest fund manager with PKR 702.8 billion in AUMs, followed by NBP Funds with PKR 552.3 billion, UBL Funds with PKR 402.8 billion, MCB Investment Management with PKR 387.2 billion and Alfalah Asset Management with PKR 341.6 billion.

Among individual fund managers, Faysal Asset Management recorded the strongest monthly growth, adding PKR 17.2 billion, or 6.58%, to its assets. Pak-Qatar Asset Management followed with an increase of PKR 4.8 billion, or 6.30%, while Lucky Investments grew by PKR 3.3 billion, or 2.71%. Atlas Asset Management and AKD Investment Management also posted monthly gains.

HBL Asset Management recorded the largest monthly decline, with assets falling by PKR 46.7 billion, or 13.39%, followed by MCB Investment Management, down PKR 30.6 billion, or 7.33%, and ABL Asset Management, which declined by PKR 23.3 billion, or 7.06%. Alfalah Asset Management and Al Habib Asset Management also reported declines of PKR 18 billion and PKR 17.2 billion, respectively.

The report attributed the monthly movements largely to investor portfolio rebalancing and shifting allocations across fund categories amid improving equity market sentiment and changing interest rate expectations, rather than any deterioration in industry fundamentals.

Al Habib Capital Markets said the mutual fund industry continues to benefit from broad-based investor participation and improving macroeconomic conditions, positioning it for sustained long-term growth.