Money market funds witness high growth in Pakistan

Money market funds witness high growth in Pakistan

Karāchi : Pakistan | Sep 01, 2011 at 9:12 AM PDT
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During the past seven months (Jan-July), the money market category of funds appreciated by 81 per cent from Rs32 billion in December 2010.The Funds earned on average annualised return of 11.2 per cent in seven months 2011 with the July return at 1The main reason for the high growth of this category of funds was the higher return earned as fund manager of money market funds were shifting their investments towards six-month papers in anticipation of SBP stance toward loosening monetary cycle, which would be beneficial to the long dated papers,” stated a report by brokerage InvestCap2.2 per cent per annum in line with the earlier month’s return.During seven months (Jan-Jul 11), the mutual funds industry witnessed growth of 16.1 per cent, starting at Rs223 billion at the end of Dec 2010.

Similarly in the seven months, the money market funds category has shown a significant growth of 81 per cent, while Islamic income funds grew by a noticeable 47 per cent.On the other hand, the equity related funds categories stood out as laggards in the month of July, due mainly to the dull conditions at the country’s stock markets, in line with the uncertain conditions in the global equity markets.

aniskhan26 is based in Rāwalpindi, Punjab, Pakistan, and is a Stringer on Allvoices.
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