The Non-Banking Financial (NBF) sector grew by 32pc in 2021 as the aggregate asset size was Rs1,790b as of June 30, 2021 compared with assets of Rs1,361b as of June 30, 2020. According to the Security Exchange Commission of Pakistan (SECP) Annual report, the Assets under Management (AUMs) of the mutual fund industry are the largest segment within NBF Sector with assets of Rs1,086,705m as on June 30, 2021, showing a growth of 35.5pc on a yearly basis. Money Market funds dominated the AUMs of the mutual fund industry with the largest share of 42pc, followed by Income Funds having a share of 24pc, the report added. There are currently 18 Asset Management Companies (AMCs) which have been licensed to offer Investment Advisory Services with a portfolio of Rs338b as on June 30, 2021,posting a growth of 18pc on yearly basis. The report said that the total assets of 19 pension funds managed by ten Pension Fund Managers (Voluntary Pension Systems) stood at Rs39,700m as on June 30, 2021. This asset class also showed strong growth of 27pc in the year under review. Further, another AMC has been allowed to act as Pension Fund Manager during the year. As regards the Real Estate Investment Trusts (REITs), 3 new REIT Management Services licenses have been granted during the year, thus the number of RMCs has risen to 10. Previously, there was only one REIT Scheme i.e., Dolmen City REIT (DCR), launched by Arif Habib Dolmen REIT Management Company Limited. As of June 30, 2021, the fund size of DCR was Rs54,291m marking a growth of 10.8pc over the previous year’s figure. Following amendments to REIT Regulations, 2015 and prioritization of the sector by the Government, the capital market and the banking regulator; the SECP has approved registration of the first shariah compliant Developmental REIT Scheme during the year. Another important area in the NBF Sector is Private Fund Management. In this context, Private Equity and Venture Capital (PE & VC) investment is poised to take off in Pakistan as the country enters a high growth phase, increasing funding needs for new profitable ideas in small and medium sized businesses.