A NOTE ON MUTUAL FUNDS IN PAKISTAN

Abstract

Capital markets play a vital role in the economic development of a country. It is now widely accepted that there is a direct correlation between economic growth and the development of the financial sector. Mutual funds are considered to be an important source of injecting liquidity into the capital markets. A well-established financial intermediation system facilitates the economic activity by mobilizing domestic as well as foreign savings. This note explains the concept of mutual funds and the economic benefits conferred by such intermediaries. It also presents an overview of the mutual fund sector in Pakistan.