Mutual funds may be a popular and effective way to manage potential investment income in Pakistan. As we move into 2025, the Pakistan mutual fund industry has a lot to offer to the investors. In this blog, we will take a look at the best performing mutual funds in Pakistan 2025, their performance indicators, and their investment strategies — and why they outperform the rivals in a competitive market.
Introduction to Mutual Funds in Pakistan
A mutual fund is an investment vehicle that allows you to invest money, along with funds from other investors, in a diversified range of assets, such as stocks, bonds, money market instruments, and other securities. These funds are run by skilled investment managers who invest on behalf of the investors. Mutual funds are regulated by the Securities and Exchange Commission of Pakistan (SECP) in Pakistan and divided into the following types:
Equity Funds– Places majorly in equity.
Income Funds: Invest in fixed-income securities like bonds.
Make an investment into short-term, low-risk instruments with Money Market Funds.
Balanced Funds: Combination of equity and fixed-income securities.
Islamic Funds: These are investments, which comply with Sharia law.
The key factors to help you evaluate mutual funds
Before we dive into the best-performing mutual funds of 2025, it is important to know what factors heavily determine their performance:
Historical Performance: While past performance is not a guarantee of future results, it can give you an idea of the consistency of the fund.
Expertise of the fund manager: The fund manager's experience and track record is very important.
Expense Ratio: A lower expense ratio indicates better returns for investors.
Risk Level: Assess the fund's risk-adjusted returns.
Diversification: With a well-diversified portfolio, risk is dispersed.
Economic and Market Conditions: The performance of funds is affected by macroeconomic and market factors.
List of Best Performing Mutual Funds in Pakistan 2025
Based on performance data, investor feedback, and market trends, here are the top-performing mutual funds in Pakistan for 2025.
1. Meezan Islamic Fund (MIF)
- Category: Islamic Equity Fund
- Performance: Meezan Islamic Fund remains by far the best Islamic mutual fund in terms of performance. Launched in 2025, it has provided an annualized return of about 22%, outperforming its benchmark.
- Investment Mandate: The fund invests in Sharia-compliant equities from Islamic countries among sectors such as technology, healthcare, and consumer goods
- Why It Stands Out: Its strong Islamic principles and sound risk management framework have made it a favorite amongst ethical investors.
2. HBL Stock Fund
- Category: Equity Fund
- Performance: HBL Stock Fund has continued to be one of Pakistan's best performing equity fund with an annualized return of 20% in 2025.
- Investment Strategy: Aims for high-growth firms in industries, such as banking, energy and telecom.
- Why It’s Unique: The savvy management team at HBL and its peeking into undervalued stocks work wonders.
3. NAFA Money Market Fund
- Category: Money Market Fund
- Performance: NAFA Money Market fund has also outperformed its benchmark by giving a consistent return of 14% in 2025 and therefore is an ideal investment for someone who is cautious of risks.
- Strategy: The fund purchases short-term government securities and high-quality corporate debt.
- Why It’s Unique: With a low-risk profile and high liquidity, it is suited for conservative investors.
4. Alfalah GHP Income Fund
- Category: Income Fund
- Performance: This fund’s 16% annualized return in 2025 is among the best of its type for fixed-income investors.
- Investment Strategy: The fund focuses on government bonds and high-yield corporate debt.
- Why It’s Noteworthy: Emphasis on capital preservation and consistent income generation makes it a favorite among retirees and conservative investors.
5. UBL Pakistan Enterprise Fund
- Category: Balanced Fund
- Performance: In 2025 this fund also provided an annualized return of 18%, ideal for someone trying to balance growth with stability.
- Investment Strategy: The Fund seeks to maintain a balanced portfolio consisting of common stocks, bonds, preferred stocks, and other equity and fixed-income securities.
- Why It’s Special: Its adaptability to ever-changing market conditions, along with the diversity of its portfolio, enables the fund to achieve consistent returns.
6. JS Growth Fund
- Category: Equity Fund
- Performance: In 2025, JS Growth Fund delivered an annualized return of 19%, ranking among the best top-performing equity funds.
- Investment Strategy: The fund primarily invests in cuttings edge companies in high-growth industries with room for innovation.
- Why It Stands Out: It stands out for its aggressive growth strategy and significant research capabilities.
7. MCB Pakistan Cash Management Fund
- Category: Money Market Fund
- Performance: Given its return of 13% in 2025, this fund can be a good option for short-term investors.
- Investment Approach: This fund invests in low-risk and short-term instruments such as treasury bills and commercial papers.
- Why It’s Unique: It’s one of the most liquid and lowest cost options for conservative investors.
8. Faysal Islamic Balanced Fund
- Category: Islamic Balanced Fund
- Performance: Year-to-date in 2025, this fund has returned an annualized 17% and is a blend of growth and stability
- Investment Approach: The fund invests in equities, and fixed-income securities in accordance with Sharia rules.
- Why It Stands Out: This fund’s dedication to Islamic guidelines and balanced investing make it a top choice among ethical investors.
How will Mutual Fund trends evolve in 2025?
- Used-of-Technology: Mutual fund investing has become more affordable because of the rise of robo-advisors and online platforms.
- ESG Investing: There is an increase in investments in Environmental, Social and Corporate Governance (ESG) funds as more investors switch to sustainable investing practices.
- Tenant Spotlight: Unique Data-Sharing Constitution to Improve Mutual Fund Product Offerings.
- Islamic Funds on the Upswing: Sharia-compliant funds are trending as they advocate for ethics in somebody's investment portfolio.
In 2025, here are some tips on investing in mutual funds.
- Define Your Purpose: Are you investing for growth, income or capital preservation?
- Invest in a Variety of Funds: To mitigate the risk, diversify your portfolio by investing in different funds.
- Manage Performance: Keep track of your fund’s performance and adjust as needed.
- Get Guidance: If this all feels too confusing, consult your financial advisor to help you align your investments with your financial goals.
Conclusion
The Mutual fund industry in Pakistan is booming, with a wide variety of mutual funds catering to the differing risk appetites and financial objectives of investors. From high-growth equity funds to stable-income funds to Sharia-compliant options, you can find the right product for you. In conclusion, analysis of year-to-date returns is a valuable tool for investors, providing insights into the performance of various funds and sectors, allowing for a greater understanding of market trends and enabling more informed investment decisions.
Note: Past performance is a useful guide but you need to take your risk appetite, time horizon, and financial goals into account before investing. Happy investing!
This blog is designed to serve as information only and not financial advice. Investment advice should only be taken from a qualified professional.
0 Comments