Mutual Funds Record All-Time High Investments

Asset Management Companies continued to attract investment from customers due to various high-profit returns in low-risk funds which caused the increase of the overall size of the sector to Rs. 1.28 trillion by end of September 2022, which is the collective all-time high value of funds managers.

According to the statistics updated by the Mutual Funds Association of Pakistan (MUFAP), the assets of the sector stood at Rs. 1.21 trillion by end of June 2022 and Rs. 1.03 trillion by end of September last year which showed that the sector achieved 5.7 percent growth from the last quarter and 24.2 percent from the last year.

The investment is mainly parked in the category of money market funds which maintained its value at Rs. 448 billion. Hence, the investment inflows have been recorded as a continuous trend in these funds.

The investments in equity market-based mutual funds witnessed a negative growth and return rate in the month of September 2022.

The average rate of fixed-return mutual funds stood at over 12 percent whereas in different funds whereas the profit rate in funds managers’ investment in the stock exchange showed a negative profit rate.

Besides high-profit rates, investment in mutual funds saw consistent growth due to the facility of digital account opening offered by various mutual funds managers.

Assets under Pension funds stood at Rs. 41.5 billion. Exchange Trade Funds maintained an assets value of Rs. 676 million by end of September 2022.

There are 313 funds being managed by 18 various asset management companies in Pakistan. The share of companies with association or shareholding of banks stands higher than other asset management companies.

Out of Rs.1.28 trillion assets of mutual funds, the conventional funds hold more than Rs. 772 billion whereas the Sharia-compliant funds manage over Rs. 482 billion in the sector.

  • You missed to mention that it’s beneficial to be invested in a mutual fund in this FY, as WHT on profits from a mutual fund is net 15% as opposed to WHT on profit from bank / FD is taxed at the prevailing income slab instead of fixed 15% WHT previously.

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