Sharia-compliant mutual funds in Pakistan have crossed the Rs. 2 trillion milestone for the first time, reflecting sustained investor interest across individual and institutional segments.
According to data released by the Mutual Funds Association of Pakistan (MUFAP), assets under management of Islamic funds reached Rs. 2.1 trillion by February 2026, up from Rs. 1.7 trillion in the same period last year. The sector had already surpassed the Rs. 1 trillion mark by the end of 2024, underscoring its steady expansion.
Islamic funds are structured across open-ended funds, pension schemes, and exchange-traded funds, and invest in categories such as money market, equity, and income instruments. Analysts say investors continue to favor these funds for relatively stable and moderate returns.
The broader mutual fund industry, comprising 24 asset management companies, reported total assets of Rs. 4.35 trillion by February 2026. Of this, conventional funds accounted for Rs. 2.25 trillion, compared to Rs. 2.1 trillion a year earlier.
MUFAP data shows that bank-backed asset management companies remain dominant due to their extensive distribution networks and broader access to investors. Leading the sector, Al Meezan Investment manages Rs. 701 billion in assets, followed by NBP Fund Management with Rs. 551 billion, MCB Investment Management with Rs. 421 billion, UBL Fund Managers with Rs. 386 billion, HBL Asset Management with Rs. 358 billion, and Alfalah Asset Management with Rs. 335 billion.
