Energy giants dominate mutual fund portfolios amid preference for large-cap, high-liquidity stocks.
Oil & Gas Development Company Limited (PSX: OGDC) has emerged as the most popular stock among mutual funds in Pakistan, with 85 mutual funds collectively holding 20% of its free float, according to a recent report by brokerage firm Arif Habib Limited (AHL).
Pakistan Petroleum Limited (PSX: PPL) ranks second with 72 funds holding 17.2% of its free float, followed by Pakistan State Oil (PSX: PSO), held by 68 funds with 32.4% of its free float in institutional hands.
The report highlights a clear institutional tilt toward large-cap, high-dividend energy sector stocks, reflecting a conservative, yield-focused investment strategy.
Beyond the energy sector, mid and small-cap names like Kohinoor Textile (KTML), GlaxoSmithKline (GLAXO), and The General Tyre (TGL) also featured in the top 10 holdings across multiple funds, although at smaller scales.
As of June 25, equity mutual funds made up 12% of total industry assets under management (AUMs), up from 10.7% the previous month. Within the equity space, National Investment Trust (NIT) remains the largest player, followed by Al Meezan Investment Management and NBP Fund Management (NAFA).
The data paints a picture of a fund industry heavily reliant on tried-and-true energy stocks, while still showing signs of measured diversification into smaller, growth-oriented companies.
