Pakistan Mutual Funds Assets Hit Rs4.72 Trillion
Pakistan mutual funds assets reached Rs4.72 trillion by the end of September 2026, according to data from the Mutual Funds Association of Pakistan. Assets under management rose 12.4 percent year on year, adding Rs520 billion from Rs4.20 trillion in September 2025. The industry keeps growing, but the pace has slowed sharply.
The slowdown stands out against the previous two years. Between September 2023 and September 2024, assets jumped by Rs1.23 trillion, from Rs1.82 trillion to Rs3.05 trillion. Between September 2024 and September 2025, they rose by Rs1.15 trillion, from Rs3.05 trillion to Rs4.20 trillion. The latest gain of Rs520 billion is less than half of either prior year, which marks a clear change in momentum.
Pakistan mutual funds assets: where the money sits
Money market and equity funds faced pressure during the year, the report said, with negative growth in both categories. A significant number of investors also kept redeeming dividends, which pulled down the growth in assets managed by fund companies. The report noted that mutual fund returns had surged to as much as 10 percent per month at times, translating into substantial income for investors with larger investments. That figure should be read as a peak monthly return for some funds, not as a typical return for all investors.
Asset management companies put the largest share of their money in bank and development finance institution deposits and other investment instruments. Those holdings stood at about Rs2.74 trillion, or 58 percent of total assets. Government securities accounted for about 17 percent, or Rs795 billion, while equity market investments stood at Rs677 billion, or about 14 percent. Other avenues held Rs567 billion, or about 12 percent. The figures are approximate and rounded, so the shares do not add up to an exact total.
The mix shows a cautious industry. Well over half the money sits in bank instruments, and less than one rupee in seven sits in equities. That pattern fits a year in which investors redeemed dividends and money market and equity funds struggled, since fund managers tend to hold safer assets when inflows weaken.
Who owns Pakistan’s mutual funds
Individual investors held Rs2.04 trillion, or 43.2 percent of total assets, which makes ordinary savers one of the largest groups in the industry. The “Others” category held the largest share at Rs2.19 trillion, or 46.3 percent. Banks and financial institutions held Rs129.15 billion, provident funds held Rs165.07 billion, pension funds held Rs154.75 billion, and gratuity funds held Rs44.62 billion.
Open-end funds dominated the industry, with assets of Rs4.55 trillion. Voluntary Pension Schemes accounted for Rs155.49 billion, employer pension funds for Rs7.41 billion, and exchange-traded funds remained small at Rs6.94 billion. Asset management companies offer 25 major funds covering money markets, equities, government securities and retirement savings.
For savers, the message is mixed. The industry is still expanding, and individual investors remain a large part of it. Growth has slowed, however, and the heavy weight in bank deposits means fund returns will track deposit rates more closely than stock market gains. Readers weighing fund options can start with Feature Pakistan’s guide to investing in the stock market.
Frequently asked questions
How large is Pakistan’s mutual fund industry?
Assets under management reached Rs4.72 trillion by the end of September 2026, up 12.4 percent from Rs4.20 trillion a year earlier.
Why did growth slow?
The industry added Rs520 billion in the year to September 2026, against Rs1.15 trillion the year before and Rs1.23 trillion the year before that, as money market and equity funds faced pressure and investors redeemed dividends.
Where do mutual funds invest?
About 58 percent sits in bank and development finance institution deposits and other instruments, about 17 percent in government securities, about 14 percent in equities, and about 12 percent in other avenues.
Who invests in mutual funds?
Individual investors hold 43.2 percent of assets, while the “Others” category holds 46.3 percent, followed by provident funds, pension funds, banks and gratuity funds.
Source: ProPakistani and Mutual Funds Association of Pakistan data.
