AUMs maintain upward trajectory into 2026

February 16, 2026 (MLN): Pakistan’s financial landscape is moving toward a more digitized, diversified, and investor-inclusive future, with the mutual fund industry increasingly standing out as a key engine of capital market expansion.

The sector continues to show strong structural momentum, supported by a sustained equity market rally, ample liquidity, and steadily rising investor participation.

By January 2026, total industry Assets Under Management (AUMs) reached Rs4.48 trillion, posting an impressive 11.5% YoY increase despite a marginal 0.5% MoM dip.

The broader trend remains firmly constructive, with 16 of 21 listed asset management companies reporting monthly AUM growth signaling widening participation and deepening confidence in professionally managed investment vehicles.

A mutual fund report by AL Habib Capital Markets reveals this which is a clear shift in preferences in January .

Shariah-compliant income funds led the expansion with Rs81.4bn in additions, highlighting the accelerating demand for Islamic financial products.

Conventional income funds followed with Rs57.6bn in net inflows, indicating that investors across segments continue to prioritize liquidity, capital preservation, and low-risk returns while aligning portfolios with individual investment principles.

Equity categories also gained meaningful traction. Conventional equity funds attracted Rs42.8bn, while Shariah-compliant equity funds added Rs23.1bn during the month.

The uptick coincided with the policy rate cut to 10.5%, which improved market sentiment and encouraged a gradual rotation toward higher-yielding assets.

Consequently, equity funds’ share in overall industry AUMs rose to 17% from 15.3% in the previous month, reflecting a growing tilt toward risk assets.

The most notable surge emerged from the VPS-Debt category, which expanded by a striking 102% MoM, translating into Rs11.3bn in growth.

The sharp increase underscores rising investor interest in flexible, strategy-driven debt instruments amid evolving economic conditions.

Overall, January’s performance points to a maturing mutual fund ecosystem characterized by diversified participation, balanced risk appetite, and sustained investor confidence reinforcing its role as a central channel for long-term capital formation.

Source: FMR , AHCML Research

Copyright Mettis Link News