KARACHI, March 24: Pakistan’s mutual funds industry while continuing its upward trajectory appreciated by 5.6 per cent in February over the earlier month to Rs360 billion, from Rs342 billion a month ago.

During eight months of financial year (July-Feb 2011-12), the mutual fund industry showed a healthy growth of 44 per cent, from Rs250 billion at the end of June. All that showed that investors had vested Rs110 billion more with the asset managers.

Open-end funds increased by 50 per cent, though closed end funds’ size shrank by 11 per cent.

A pie chart prepared by the brokerage InvestCap shows 38 per cent of all of the funds invested in the industry, going to the money market, followed by 26 per cent in fixed income funds, 19 per cent in equity funds; 8 per cent in Islamic income funds and 3 per cent in Islamic Equity funds.In the month of February, open-ended funds’ size appreciated by 5 per cent over the earlier month to Rs338 billion while closed-end funds’ grew by 6 per cent to Rs22 billion.

During the month major growth was witnessed in the money market funds category, which rose by 10 per cent over the previous month to Rs138 billion. Islamic equity funds grew by 6 per cent, slower than the 8 per cent witnessed in local equity markets during the month of Feb.

In Feb, income funds category held Rs84 billion. However, on a cumulative basis during eight months of FY12, the income funds category showed and enormous growth of 117 per cent in terms of size.

The Money market funds, constituting 42 per cent of the total size of open-end funds (38 per cent of the entire industry) again stood in the lead, growing 10 per cent month-on-month in Feb to reach Rs138 billion, up from Rs125 billion in January.

February showed positive returns in the equity market as the KSE-100 index was up 8 per cent in Feb over the previous month.

Equity funds category showed positive march in its size rising by 6 per cent month-on-month to close at Rs49 billion.

But due to earlier depreciation in the stock market, investors were still jittery over placing their money in the equity funds category, which stood down by 4 per cent in the eight months current financial year, compared to level in June last year.

Meanwhile the KSE-100 benchmark had moved up 3 per cent over the same time last year.