Sharia-compliant mutual funds in Pakistan have reached a historic milestone, crossing the Rs. 2 trillion mark for the first time. According to the Mutual Funds Association of Pakistan (MUFAP), total assets of Islamic fund managers reached Rs. 2.1 trillion by February 2026, up from Rs. 1.7 trillion in the same period last year.
The growth reflects consistent investor confidence, as the sector had previously surpassed Rs. 1 trillion by the end of 2024. Islamic funds are structured into categories such as equity, money market, and income funds, and include open-ended funds, pension funds, and ETFs. They invest across money market instruments, equities, and income-based securities.
Analysts say that investors seeking stable and moderate returns increasingly prefer mutual funds as a reliable avenue for savings and long-term investment. The overall mutual fund industry in Pakistan, managed by 24 asset management companies, recorded total assets of Rs. 4.35 trillion, with conventional funds holding Rs. 2.25 trillion.
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