Mutual Funds were introduced in Pakistan in 1962, with the public offering of National Investment (Unit) Trust (NIT) which is an open-end mutual fund in the public sector. This was followed by the establishment of the Investment Corporation of Pakistan (ICP) in 1966, which subsequently offered a series of closed-end mutual funds. Up to date, twenty six (26) closed-end ICP mutual funds have been floated. Initially there was both public and private sector participation in the management of these funds, but with the nationalization in the seventies, the government role become more dominant and today these mutual funds are totally in the public sector. Later, the government also allowed the private sector to establish mutual funds. Currently there exists one open-ended and eleven closed-ended mutual funds under private sector management.

Rules Govern Mutual Funds in Pakistan

There are two rules govern mutual funds in Pakistan, which are:

• Investment Companies and Investment Advisors' Rules, 1971. (govern closed-end mutual funds)
• Asset Management Companies Rules, 1995. (govern open-ended mutual funds)

These rules however only apply to private sector operated mutual funds and are not applicable to NIT and ICP mutual funds.

Mutual Funds in Pakistan

Type of Mutual Fund Public Sector Private Sector Open-Ended NIT (National Investment (Unit) Trust) UTP (Unit Trust of Pakistan) Closed-Ended ICP (Investment Corporation of Pakistan) Al-Meezan Mutual Fund Asian Stocks Fund BSJS Balanced Fund Dominion Stock Fund First Capital Mutual Fund Golden Arrow Stock Fund Growth Mutual Fund KASB Premier Fund Prudential Stock Fund Safeway Mutual Fund Tri-Star Mutual Fund