The growth was led by fixed income funds and money market funds growing by a massive 117% and 62% to reach Rs84 billion and Rs125 billion, respectively, according to an InvestCap research note.
Open-end funds, which contribute 94% of the total size of the industry, appreciated by a solid 43% during July 2011 to February 2012, adds the note.
The income funds category appreciated at a massive scale of 117%, mainly backed by ABL-Government Securities Fund (ABL-GSF) launched in November 2011. Fund-wise probe into asset growth reveals that ABL-GSF was able to add Rs30 billion, almost double from the previous month’s figures, to close at Rs31.5 billion in January.
However, the equity funds category suffered a cumulative decline of 9% since July. Amongst equity funds, ABL-Stock Fund and Atlas Stock Market Fund yielded 6.3% and 3.7%, respectively.
On a monthly basis, after suffering a marginal decline of 5% in December, the local mutual funds industry rebounded well and showed a healthy double-digit growth of 19% during January to reach Rs342 billion.
Published in The Express Tribune, February 21st, 2012.
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