Sharia-compliant mutual funds in Pakistan have reached a major milestone, crossing the Rs. 2 trillion mark for the first time, reflecting growing investor confidence in Islamic financial products.
According to data released by the Mutual Funds Association of Pakistan, total assets under management by Islamic fund managers rose to Rs. 2.1 trillion by the end of February 2026, compared to Rs. 1.7 trillion during the same period last year. The steady rise highlights a strong upward trend, with the sector having already crossed Rs. 1 trillion by the end of 2024.
Sharia-compliant funds in Pakistan are offered in multiple categories, including open-ended funds, pension funds, and exchange-traded funds (ETFs). These funds invest across various asset classes such as money market instruments, equities, and income-based securities, providing a range of options for investors with different risk profiles.
Analysts note that investors seeking relatively stable and moderate returns are increasingly turning to mutual funds as a preferred investment avenue, particularly those aligned with Islamic principles.
The broader mutual fund industry, which includes 24 asset management companies, recorded total assets of Rs. 4.35 trillion by the end of February 2026. Within this, conventional funds accounted for Rs. 2.25 trillion, while Islamic funds reached Rs. 2.1 trillion, showing nearly equal contribution from both segments.
In addition to mutual funds, investor participation in voluntary pension schemes, employer-sponsored pension plans, and ETFs has also contributed to overall sector growth.
Asset management companies linked with commercial banks continue to dominate the market, benefiting from wider distribution networks and diversified client bases.
Among fund managers, Al Meezan Investment Management leads the sector with assets under management of Rs. 701 billion. It is 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.
The continued expansion of Islamic mutual funds underscores the increasing demand for Sharia-compliant investment options and the sector’s growing role in Pakistan’s financial landscape.
