Mutual funds in Pakistan are heavily invested in large-cap energy stocks, reflecting a preference for liquidity, dividends, and financial stability. According to a recent report by Arif Habib Limited (AHL), the Oil & Gas Development Company Limited (PSX: OGDC) leads as the most held stock by mutual funds.
OGDC Leads with Widespread Institutional Confidence
As of July 2025, 85 mutual funds hold OGDC, accounting for 20.0% of the company’s free float. The stock’s strong fundamentals, high dividends, and government backing make it a top pick. Fund managers value OGDC’s low volatility and large market capitalization, which support stable returns.
Pakistan Petroleum Limited (PPL) Comes in Second
Pakistan Petroleum Limited (PSX: PPL) is held by 72 funds, representing 17.2% of its free float. PPL offers a solid blend of profitability and future exploration potential. The company plays a key role in Pakistan’s energy supply, making it a stable choice for fund allocations.
PSO Secures Third Spot Among Fund Holdings
Pakistan State Oil (PSX: PSO) ranks third with 68 mutual funds invested in the stock. Funds now hold 32.4% of its free float, making it the most concentrated among the top three. PSO’s consistent dividends and infrastructure investments keep it in high demand.
Strong Tilt Toward Energy Sector
AHL’s report highlights that institutional funds prefer energy sector giants for their scale and returns. These companies offer liquidity, regular dividends, and low risk. Fund managers also favor their defensive nature during periods of market uncertainty.
Small and Mid-Cap Diversification
Despite the energy-heavy concentration, some funds are exploring growth potential in smaller stocks. These include:
- KTML – 8 funds
- GLAXO – 7 funds
- TGL – 6 funds
- GAL – 3 funds
- GHNI – 3 funds
- ELSM, HUMNL, NATF, PSX, SRVI, TPLT, BFAGRO – 2 funds each
- FLYNG – 1 fund
These stocks represent sectors like pharmaceuticals, media, food, and manufacturing. Their inclusion signals fund managers’ interest in long-term capital appreciation.
Equity Mutual Funds Show AUM Growth
As of June 25, 2025, equity mutual funds’ assets under management (AUMs) stood at 12% of the total, up from 10.7% in May. This rise reflects growing investor interest in equities and improving market confidence.
Leading Fund Managers by Equity Holdings
National Investment Trust (NIT) holds the largest equity exposure among all mutual funds. It’s followed by Al Meezan Investment Management and NBP Fund Management (NAFA). These firms continue to dominate in terms of AUM concentration in equities.
Why These Holdings Matter
Investors can benefit by monitoring where mutual funds allocate capital. Popular fund holdings reflect companies with strong fundamentals, reliable income, and long-term growth outlooks. OGDC, PPL, and PSO are considered “safe bets” in uncertain markets.
Mid and small-cap stocks, on the other hand, may offer higher returns but carry more risk. Their inclusion suggests that fund managers are cautiously diversifying their exposure.
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Final Thoughts
The Pakistan Mutual Funds Stocks in July 2025 shows a clear tilt toward the energy sector. OGDC leads with the highest fund participation, followed by PPL and PSO. These choices reflect a focus on stability, dividends, and liquidity.
At the same time, diversification into smaller companies indicates cautious optimism. Fund managers are balancing reliable returns with selective risk-taking. For retail investors, studying these holdings can help shape a smarter, data-driven portfolio strategy.
