Islamabad: Asset Management Companies (AMCs) in Pakistan have achieved a historic milestone, with their collective assets exceeding Rs. 3 trillion for the first time. This remarkable growth is due to strong 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 maintained their upward trajectory, reaching Rs. 3 trillion mark in September and sustain this momentum till October 2024. Funds offering low-risk profiles and profitable returns have emerged as a big draw for investors looking for stability and profitability.
According to Mutual Funds Association of Pakistan (MUFAP), the total value of mutual funds was Rs. 3.44 trillion by the end of October. These funds are categorized into three main types: Open-end funds of Rs. 3.35 trillion, voluntary pension funds worth Rs. 82 billion, and exchange-traded funds (ETFs) totaling Rs. 526 million.
Open-end funds dominate the market, with money market funds alone accounting for more than Rs. 1.3 trillion. The income funds attracted Rs. 1.2 trillion, while stock market funds withdrew Rs. 258 billion. Recent weeks have seen equity funds achieve returns of up to 25%, stimulating short-term investments.
Among the asset management companies, Al Meezan Investment Management Limited leads with Rs. 611 billion in assets under management, followed by NBP Fund Management Limited at Rs. 422 billion. MCB Investment Management Limited and HBL Asset Management Limited complete the top four, managing Rs. 367 billion rupees. 320 billion respectively.
These leading asset management companies, listed on the Pakistan Stock Exchange (PSX), confirm the significant growth witnessed in this sector, reflecting investor confidence and favorable economic conditions. As lucrative returns continue to attract investments, the asset management industry is poised for further expansion in the coming months.