ISLAMABAD: Asset Management Companies (AMCs) in Pakistan have achieved a historic milestone, with their collective assets crossing Rs. 3 trillion for the first time. This remarkable growth has been fueled by robust inflows from individual and corporate investors, driven by attractive profit rates ranging between 20% and 25% in the current financial year.
After reaching Rs. 2 trillion in January 2024, AMCs sustained their upward trajectory, hitting the Rs. 3 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 Rs. 3.44 trillion by October’s end. These funds are categorized into three main types: open-ended funds worth Rs. 3.35 trillion, voluntary pension funds valued at Rs. 82 billion, and exchange-traded funds (ETFs) totaling Rs. 526 million.
Open-ended funds dominate the market, with money market funds alone accounting for over Rs. 1.3 trillion. Income funds attracted Rs. 1.2 trillion, while equity market funds drew Rs. 258 billion. Recent weeks have seen equity funds deliver returns of up to 25%, spurring short-term investments.
Among AMCs, Al Meezan Investment Management Limited leads with Rs. 611 billion in managed assets, followed by NBP Fund Management Limited at Rs. 422 billion. MCB Investment Management Limited and HBL Asset Management Limited round out the top four, managing Rs. 367 billion and Rs. 320 billion, respectively.
These top-performing AMCs, listed on the Pakistan Stock Exchange (PSX), underscore the sector’s significant growth, reflecting investor confidence and favorable economic conditions. With lucrative returns continuing to attract investments, the asset management industry is poised for further expansion in the coming months.
