Overseas Pakistanis are increasingly investing in various mutual funds managed by asset management companies, showing nearly 100 percent growth in investment value over the past year.
According to data released by the Mutual Funds Association of Pakistan (MUFA), the investment value of overseas Pakistanis in mutual funds managed by various asset management companies doubled to Rs. 4 billion by March 2024.
By the end of March 2023, the investment of overseas Pakistanis in mutual funds stood at Rs. 2 billion. The rising trend in mutual fund investments is attributed to the lucrative profits offered by various asset management companies, facilitated by the Roshan Digital Accounts (RDA).
Most overseas Pakistanis have placed their savings in low-risk mutual funds with profit rates of up to 22 percent. Mutual funds traded on the stock exchange are less favored for investments due to their higher risk profiles.
According to MUFAP, there are 7,713 RDA account holders investing in mutual funds. While 14 banks provide RDA services, only 7 AMCs offer them. Increasing the number of AMCs in the RDA system could attract more investments from overseas Pakistanis through enhanced marketing and awareness campaigns.
Since its inception, the services of Roshan Digital Account offered by various banks received $8 billion from various overseas Pakistan living in different foreign countries. The facility primarily allows its users to send remittances to Pakistan. It also provides them the option of investment in Government securities (Naya Pakistan Investment Certificate), stock exchange, and mutual funds.
Overseas Pakistanis not only park their savings in these investment avenues, but they also repatriate their money or share it with their relatives living in Pakistan. AMC companies should enhance their marketing activities to attract more savings and investments from expatriates.
