Karachi: Mutual fund assets under management have tripled over the past three years, with an 11% year-over-year growth recorded in December 2025. Investments in equity portfolios have seen a notable increase, while debt portfolios have experienced more modest growth.

According to JS Global, the data compiled from the Mutual Funds Association of Pakistan (MUFAP) shows that within the total assets under management, investments in equity portfolios increased by 56% during the calendar year 2025. Meanwhile, allocations to debt portfolios, including income, fixed income, and money market funds, rose by 5% over the same period. As a result, equity's share of total assets under management has grown from 10% in December 2023 to 15% in December 2025.

Ample domestic liquidity and improved equity market attractiveness have played a significant role in absorbing foreign portfolio investment outflows. This, in turn, has supported a broad-based market re-rating, with valuations rising from 3.5 times in December 2023 to 8 times in December 2025, with the potential for further upside.