Asset Management Companies’ Funds Cross Rs. 3 Trillion for the First Time

Asset Management Companies (AMCs) in Pakistan continued to attract inflows of funds from individual investors and corporations due to lucrative profit rates in the current financial year, which surged to over Rs. 3 trillion for the first time in Pakistan. AMCs previously marked a record touching its assets worth Rs. 2 trillion in January 2024 and registered another record of achieving a milestone of Rs. 3 trillion in September and maintained its value in October 2024. Lucrative profit rates vary from 20 to 25 percent on different funds with low-risk features attracting investment and savings in funds of asset management companies. The funds traded in the equity market even offered up to 25 percent in the last few weeks, which attracted short-term investments from investors in recent weeks. According to the Mutual Fund Association of Pakistan (MUFAP), the overall value of funds surged to Rs. 3.44 trillion. The mutual funds are divided into three main types including open-ended funds with a total value of Rs. 3. 35 trillion, voluntary pension funds with a total value of Rs. 82 billion, and exchange-traded funds with a total value of Rs. 526 million. Among these open-ended funds, funds traded in the money market have a significant share with values surging to over Rs. 1.3 trillion. Income funds of various AMCs also attracted over Rs. 1.2 trillion by end of October 2024 and the equity market funds attracted Rs. 258 billion. Al Meezan Investment Management Limited is the leading AMC with funds worth Rs. 611 billion. NBP Fund Management Limited is managing funds of over Rs. 422 billion. MCB Investment Management Limited secured the third position with assets values of Rs. 367 billion. HBL Asset Management Limited stood at number four with an asset value of Rs. 320 billion. These leading AMCs are also listed on the Pakistan Stock Exchange (PSX).