Only 14% mutual funds invested in PSX

Pakistan's mutual fund industry has expanded nearly 6.8 times since 2019, crossing Rs4 trillion in assets under management (AUM) by late 2025. However, the sector's heavy concentration in low?risk money market instruments is raising concerns about market depth, investor behaviour and systemic liquidity pressures. According to a post by the Overseas Investors Chamber of Commerce and Industry (OICCI) on X, almost half of the industry's total AUM is parked in money market instruments, while only 14% is allocated to equities. This underscores investors' overwhelming preference for liquidity and fixed?income products over long?term stock market exposure. "The total liquidity mutual funds have under management is close to Rs4 trillion, which was the last reported number from late 2025," said Sana Tawfiq, Research Head at Arif Habib Limited (AHL).