Meezan Islamic Fund (MIF) Review: Returns, Expense Ratios, and Risk Breakdown
The Meezan Islamic Fund (MIF) is one of the best-known Shariah-compliant equity funds in Pakistan, managed by Al Meezan Investment Management. With about Rs 66 billion in assets and a track record since 2003, it is often the first Islamic equity fund investors hear about. This review looks at what the fund holds, what it has returned, what it costs, and how risky it has been, using the Al Meezan Fund Manager’s Report (FMR) for August 2026 as the main source and late-October fund-data sites for the latest picture.
This is general information, not investment advice. MIF is a high-risk equity fund and can lose money. Check the latest FMR and offering document before investing.
Fund Snapshot
| Detail | MIF |
|---|---|
| Launch date | 8 August 2003 |
| Category | Open-end equity fund |
| Shariah-compliant | Yes |
| Benchmark | KMI-30 index |
| Risk profile | High (risk of principal erosion: High) |
| Fund manager | Ahmed Hassan, CFA |
| Net assets | Rs 65,934 million (31 August 2026) |
| NAV per unit | Rs 164.83 (31 August 2026) |
| Equity exposure | 99.25% of assets |
| Asset manager rating | AM1 (PACRA, May 2026) |
Costs: What You Pay
| Cost | MIF |
|---|---|
| Management fee | 3.00% (permitted range 0% to 3%) |
| Total expense ratio | 4.00% month-to-date, 3.96% year-to-date (August 2026), including about 0.49% for government levies and taxes |
| Front-end load | 2.00% |
| Back-end load | Nil on the main units (one data site notes a 2% back-end load on a separate unit class) |
Why this matters: the expense ratio is deducted from the fund’s assets every year, so the fund’s gross return must clear about 4% just for you to break even before you earn a gain. The table below shows a rough illustration.
| Illustration (before tax) | Amount |
|---|---|
| You invest | Rs 100,000 |
| After 2% front-end load, value invested at NAV | about Rs 98,039 |
| If the fund returns 13.06% net of expenses (its reported 1-year figure to August 2026) | about Rs 110,800 |
| Annual expense drag at about 3.96% of assets (already inside the return) | about Rs 3,900 per Rs 100,000 held |
Performance Against the Benchmark
All figures are net of expenses and from the FMR dated 31 August 2026.
| Period | MIF | KMI-30 |
|---|---|---|
| 1 month | 1.34% | 1.80% |
| 3 months | 0.41% | 0.46% |
| 6 months | 5.06% | 6.94% |
| Fiscal year to date (FY27, from July) | -3.38% | -2.20% |
| 1 year | 13.06% | 18.50% |
| 3 years (cumulative) | 235.00% | 235.68% |
| 5 years (cumulative) | 194.74% | 224.13% |
| Since inception (annualized) | 17.40% | 16.47% |
| Since inception (cumulative) | 3,956.98% | 3,272.30% |
Our arithmetic on the cumulative figures gives roughly 49.6% a year over three years and 24.2% a year over five years for MIF, against about 26.5% a year over five years for the benchmark.
Year-by-Year Returns
| Fiscal year | MIF | KMI-30 | Gap |
|---|---|---|---|
| FY26 | 33.02% | 39.18% | -6.16 |
| FY25 | 59.22% | 46.24% | +12.98 |
| FY24 | 73.00% | 78.70% | -5.70 |
| FY23 | -2.54% | 2.88% | -5.42 |
| FY22 | -11.27% | -10.25% | -1.02 |
| FY21 | 35.50% | 39.32% | -3.82 |
| FY20 | 2.81% | 1.62% | +1.19 |
| FY19 | -24.30% | -23.80% | -0.50 |
| FY18 | -17.10% | -9.60% | -7.50 |
What this shows:
- MIF beat its benchmark in only two of the nine years shown (FY25 and FY20) and lagged in the rest. The average yearly gap across these nine years is about -1.8 percentage points, close to what you would expect from a fund charging about 4% against an index that has no costs.
- The long-run record looks better because of earlier years: since inception, MIF’s annualized return is slightly above the benchmark’s. The index and fund have different histories, so treat that comparison with care.
- Down years are deep. FY19 (-24.30%) and FY18 (-17.10%) are painful reminders that equity funds can fall a fifth or more in a year.
The Latest Picture (Late October 2026)
Fund-data sites show a weaker picture by late October, consistent with a lower market:
| Measure | Reading (27 October 2026 data) |
|---|---|
| NAV | about Rs 151 to 152 (one site shows 151.87, another 151.12) |
| Assets | about Rs 61.5 billion |
| 1 month | about -4.4% |
| 3 months | about -8.4% |
| Year to date (fiscal) | about -11% |
| 1 year | about -4% to -5.5% (sites differ) |
That is roughly 8% below the August NAV of Rs 164.83. The KSE-100 closed at about 162,375 on 23 October 2026, down from roughly 174,054 at the end of 2025, so MIF has fallen in line with the market, not on its own.
Data sites disagree with each other on exact figures, and one gave no year with its dates, so rely on the official FMR when you decide.
What the Fund Holds
| Top holdings (August 2026) | Share of assets |
|---|---|
| Oil & Gas Development Co. | 11.12% |
| Meezan Bank | 9.02% |
| Hub Power | 8.96% |
| Lucky Cement | 8.39% |
| Mari Energies | 7.84% |
| Fauji Fertilizer | 6.99% |
| Engro Holdings | 5.90% |
| Fatima Fertilizer | 3.40% |
| Engro Fertilizers | 3.38% |
| Systems Limited | 3.23% |
| Sector (share of equity portfolio) | Weight |
|---|---|
| Oil and gas exploration | 21.39% |
| Cement | 14.97% |
| Fertilizer | 13.77% |
| Commercial (Islamic) banks | 9.07% |
| Power generation and distribution | 8.96% |
| Other sectors | 31.09% |
The portfolio is concentrated in energy, cement, and fertilizer, with Meezan Bank (the group’s own bank) the second-largest holding. A shock to oil and gas, fertilizer subsidies, or the cement cycle can move the fund noticeably.
Risk Breakdown
| Measure (from a fund-data site, October 2026) | Reading |
|---|---|
| Standard deviation | 6.00% |
| Beta | 1.01 |
| Sharpe ratio | -0.86 |
| Information ratio | -0.69 |
| Portfolio turnover | 31.13% |
- Beta near 1 means the fund moves almost one-for-one with its market.
- A negative Sharpe ratio means recent returns have not compensated for the risk taken.
- A negative information ratio means it has lagged its benchmark on a risk-adjusted basis.
- Risk measures depend on the period and method each site uses, so treat these as indicators, not precise facts.
Who MIF May Suit, and Who Should Avoid It
| May suit | Probably not suited |
|---|---|
| Investors who need Shariah-compliant equity exposure | People who need the money within three years |
| Long horizons of five years or more | Investors who cannot tolerate a 20% drop |
| Those who want a large, established fund with an AM1-rated manager | Investors who want the lowest possible costs |
| Investors comfortable with Pakistani market and sector concentration | Anyone using emergency savings |
Alternatives to Consider
- Other Islamic equity funds: see our comparison of Al Meezan, UBL Funds, and MCB Islamic funds. Alhamra Islamic Stock Fund shows a similar 4.03% expense ratio and higher loads.
- Islamic index funds or ETFs: Mahaana lists an index fund of about 30 halal Pakistani stocks. Its fees were not available in our review, so check them, since lower-cost index tracking can matter over time.
- Islamic money market or income funds for money you cannot risk: see Top Money Market Funds in Pakistan.
- Direct shares through a broker: see how to open a PSX account, though this involves picking stocks yourself.
Tax in Brief
Sources describe redemption gains on equity (“stock”) funds as taxed at 15% for individuals, deducted by the fund, with a possible exemption for units bought on or before 30 June 2024 and held for more than six years. Dividends from equity funds are described as taxed at 15% for filers and 30% for non-filers. Rules change each budget, so confirm with Al Meezan or a tax adviser, and see filer vs non-filer rates.
How to Invest
Al Meezan offers a mobile app, web portal, Raast payments, and a digital account that does not require a branch visit. Follow the steps in How to Start Investing in Mutual Funds via Mobile Apps.
Our Verdict
MIF is a large, long-standing Islamic equity fund with a real record: strong in rising markets, deep losses in bad years, and a cost level (about 4% a year plus a 2% front-end load) that has meant it trails its own benchmark most years. It suits patient, Shariah-conscious investors who understand the risk and plan to hold for five years or more. It is a poor home for short-term money, and its costs deserve a comparison with alternatives before you commit.
Related Guides on PakGains
- Start here, the stock-market hub, and the PSX hub
- KSE-100 Index Explained
- PSX Performance in the Last 5 Years
- PSX vs NYSE (2023 to 2026)
- PSX Dividend Investing Guide
- Follow the index on the PakGains charts page
Sources: Al Meezan Fund Manager’s Report, August 2026, Meezan Islamic Fund, Sarmaaya, Islamic Mutual Fund NAV Pakistan, PSX Tactics, Alhamra Islamic Stock Fund, FinHisaab, KSE-100 closes at 162,375 on 23 October 2026, Pakera, KSE 100 Index, Wikipedia, Dividend Tax in Pakistan 2026, Pakera, Mutual Fund Tax Calculator 2026-27, Mahaana
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About Sadia Faiz
Sadia Faiz writes on global economic trends, foreign exchange dynamics, and international money transfer channels. Her articles examine currency movements, foreign remittance incentives, and practical solutions for moving funds across borders. Sadia is dedicated to helping overseas Pakistanis understand total transfer costs, exchange rate margins, and compliant banking methods for family support and wealth preservation.
Disclaimer: The content on PakGains is for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. Financial markets, cryptocurrencies, and banking services involve inherent risk. Always conduct your own research or consult with a licensed financial professional before making financial decisions.