The mutual fund industry continued to display structural resilience

The mutual fund industry continued to display structural resilience, with total Assets Under Management (AUMs) reaching PKR 4.46 trillion as of Feb’26, registering a healthy 11.06% YoY growth. On a monthly basis, however, AUMs declined marginally by 0.41% MoM, largely reflecting the correction in the equity market during the period.
During February 26, the benchmark index of the Pakistan Stock Exchange declined sharply by 8.75%, translating into a drop of 16,112 points. The downturn was primarily driven by rising geopolitical uncertainty in the Middle East, which dampened investor sentiment, and by the NCCPL’s implementation of the T+1 settlement mechanism, which also triggered short-term market adjustments.
Despite the market volatility, industry dynamics remained relatively stable, with 16 out of 21 listed asset management companies (AMCs) reporting AUM growth during the month. This indicates continued investor participation and sustained confidence in professionally managed investment vehicles even amid short-term market pressures.

Asset Under Management (AUMs) – AMC-wise

Based on AMC-wise data, Al Meezan Investment Management Limited retained its industry leadership in Feb’26 with AUMs of PKR 702bn, reinforcing its dominant franchise strength, sustained investor confidence, and consistent inflow momentum across diversified mandates.

Growth momentum broadened beyond the market leader, with Mahaana Wealth Limited posting a strong +17.70% MoM AUM expansion, while Al Meezan Investment Management Limited delivered a solid +6.62% MoM increase, highlighting accelerating traction among both established and mid-tier AMCs.
Overall, Feb’26 data signals a structurally expanding industry, marked by rising inflows, competitive performance dispersion, and increasing investor diversification across fund managers — reinforcing a constructive outlook for sustained AUM growth ahead.

Asset Under Management (AUMs) – Category-wise

The top five fund categories by absolute AUM growth in Feb’26 provide a clear and insightful snapshot of evolving investor preferences and risk appetites.
Shariah-Compliant Fixed-Rate funds emerged as the strongest contributor, recording a substantial increase of PKR 131.8bn, highlighting the growing market for Islamic financial instruments within the broader investment landscape.
Following closely, Conventional Capital Protected funds attracted PKR 15.7bn in net inflows. The parallel growth in both conventional and Shariah-compliant liquidity funds indicates that investors across segments are prioritising safety, flexibility, and low-risk returns, while also aligning investments with faith-based principles where applicable.
Equity and Shariah-compliant equity funds recorded outflows of PKR 51.8bn and PKR 19.4bn in Feb-26, respectively, as geopolitical tensions in the Middle East rose, driving Equity AUMs down to 15.42% from 17.03%, reflecting a clear shift toward Fixed income.
The most striking performance was observed in the Shariah Complaint Fixed Rate Return Fund, which registered a remarkable growth of 144.67% MoM, translating into PKR 131.8bn.