Customers continued to invest in asset management companies owing to numerous high-profit returns in low-risk funds, which led to a growth in the sector’s total size to Rs. 1.28 trillion by the end of September 2022, the sector’s all-time high value as a whole.
The assets of the sector stood at Rs. 1.21 trillion by the end of June 2022 and Rs. 1.03 trillion by the end of September last year, according to statistics updated by the Mutual Funds Association of Pakistan (MUFAP), indicating that the sector experienced growth of 5.7 percent from the previous quarter and 24.2 percent from the previous year.
The majority of the investment is parked in the money market fund category, which kept its value at Rs. 448 billion. As a result, the investment inflows into these funds have been noted as an ongoing trend.
In the month of September 2022, investments in mutual funds based on the equities market saw negative growth and return rates. While the profit rate in various funds and the managers’ investment in the stock market showed a negative profit rate, the average rate of fixed-return mutual funds was above 12%.
Along with excellent profit rates, the availability of digital account creation by different mutual fund managers contributed to the steady rise of mutual fund investing.
Pension fund assets totalled 41.5 billion rupees. By the end of September 2022, Exchange Trade Funds still had assets valued at Rs. 676 million. In Pakistan, 313 funds are handled by 18 different asset management firms.
When compared to other asset management organisations, associations or shareholdings of banks have a greater percentage.
Out of mutual funds’ total assets of Rs. 1,28 trillion, conventional funds hold more than Rs. 772 billion, while Sharia-compliant funds oversee more than Rs. 482 billion.