The assets managed by the mutual fund companies in the country crossed the value of Rs.1 trillion in the outgoing fiscal year for the first time in history.
According to the data released by the Mutual Funds Association of Pakistan (MUFAP), the assets under management (AUMs) have grown at an annualized rate of 15.7 percent over the last decade.
Assets Under Management (AUM) of Pakistan’s Mutual Funds Industry have crossed PKR 1trn for the first time. AUMs have grown at a CAGR of 15.7% during the last 10 years.@Pakstockexgltd @StateBank_Pak#KSE100 #PSX #MUFAP #Equities #MSCI #EM #Pakistan pic.twitter.com/TD2lL1LSke
— Arif Habib Limited (@ArifHabibLtd) August 12, 2021
The total AUM was valued at Rs. 1.02 trillion at the end of June 2021, which showed an increase of 64.3 percent from the value recorded at the end of June 2020.
Nearly 28 percent of this amount (Rs. 285.2 billion) had been invested at the close of the end of June 2021.
The largest chunk of these AUM funds was recorded for debt instruments, with most instruments having a maturity term of less than one year.
The MUFAP data also shows that nearly one-fourth of these funds had been invested in the share market, a majority of which had been invested in fixed income funds.
The CEO of Arif Habib Ltd., Shahid Ali Habib, told the media that the consistent rise in the AUM shows that the retail investors are also being made part of these funds.
He said, “The growth rate in AUM is going to go further up in the coming years. The penetration level of our asset management industry is still very low compared with other regional economies”.