KARACHI, April 24: The total net asset value (NAV) of mutual funds has been estimated at $1.5 billion as of March 31, 2004. This was stated by Mutual Fund Association (MFA) chairman Zaigham Mahmood Rizvi while delivering a presentation on "Mutual Funds: opportunities and risks" organized by the Institute of Bankers Pakistan here on Friday evening.

He said that 18 asset management companies (AMCs) were operating 12 open-end and 15 close-end mutual funds in Pakistan.

He pointed out that the number of asset management companies were growing as more AMCs and funds were in the pipeline.

Mr Rizvi was of the view that the segregated divesture of ICP funds had placed a pivotal role in the growth of mutual funds industry in Pakistan.

Giving comparison with other countries, he said the size of mutual funds in the US was estimated at $7.4 trillion, Japan $349 billion, South Korea $120.8 billion, India $30.75 billion and China $20.52 billion.

Citing reasons for slow growth of mutual funds in Pakistan, Mr Rizvi said lack of awareness, controlled public sector, high interest rates, low literacy and low savings were the major causes.

Earlier, IBP chief executive Saleem Umer in his address of welcome highlighted the importance of mutual funds.-APP