Investors who want their fund manager fully out of conventional finance should pick Al Meezan, the only sole-mandate Shariah AMC at scale in Pakistan. Small savers starting with a few thousand rupees have a real case for NBP Funds, whose Islamic Savings Fund opens at Rs 1,000 while Al Meezan's flagship money market fund demands Rs 500,000.
These are the two giants of Pakistani asset management. Al Meezan managed over Rs 702 billion for 602,000-plus investors at June 30, 2026, all of it Shariah-compliant, and has run that way since 1995. NBP Funds, the former NAFA, manages over Rs 600 billion (a headline its site leaves undated) across 26 open-end funds and 4 pension funds, with a full conventional lineup running beside its Islamic suite. Both hold the top AM1 management quality rating.
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The purity question comes first
Al Meezan's entire business is Islamic: 23 mutual funds, 3 pension funds, one mandate. NBP runs a dual shelf, meaning the same firm, the same distribution machine, and the same management company earn fees from conventional interest-based funds alongside the Islamic ones. The Islamic funds themselves are properly screened and separately governed, and NBP's three-scholar Shariah board includes Dr. Mufti Irshad Ahmad Aijaz, chairman of both the SBP and SECP Shariah committees. But for investors who extend the halal test from the fund to the institution, the dual shelf is disqualifying, and that single consideration sends a lot of money to Al Meezan.
There is also a disclosure wrinkle on NBP's side worth knowing: its Islamic Savings Fund page discloses legacy non-compliant investments under provisioning, a hangover being worked out rather than hidden, and to NBP's credit it is printed. Al Meezan's shelf carries no equivalent legacy because there was never a conventional book.
Money market funds: the fee and minimum trade-off
This is where NBP gets genuinely competitive. The NBP Islamic Money Market Fund held Rs 58.67 billion at June 30, 2026 with a fee capped at 1.25% and since-inception returns of 11.8% per year against a 6.3% benchmark, though it carries a tiered load of up to 3%, unusual for a money market product. Its Islamic Savings Fund opens at Rs 1,000 and has won three Lipper Global Islamic awards.
Al Meezan's Rozana Amdani Fund is bigger (Rs 63.76 billion) and cheaper to hold (1.10% actual fee, nil loads, daily dividend), but the published minimum is Rs 500,000, which shuts out exactly the savers NBP welcomes. FY26 money market returns landed around 9.5% across the industry. If you have half a million rupees, Rozana Amdani is the better vehicle; if you have five thousand, NBP is the one that will take you.
Equity funds: similar prices, similar problem
The Meezan Islamic Fund is Pakistan's biggest Islamic equity fund at Rs 70.43 billion (June 30, 2026), charging a 3% management fee plus 2% front-end load; it returned +33.22% in FY26 against the KMI-30's +39.18%. NBP's Islamic Stock Fund (Rs 14.77 billion, KMI-30 benchmark) charges up to 3% plus a 3% load with bundled takaful. Active equity pricing is nearly identical at both firms, and both flagship equity funds lagged the index in FY26.
Cost-conscious equity investors should note Al Meezan's passive options: the KSE Meezan Index Fund at a 0.75% fee (though still with a 2% load) and the Meezan Pakistan ETF at 0.50% with no load. NBP's Islamic shelf has no equivalent listed low-cost tracker, which makes Al Meezan the only one of the two offering a cheap passive route; see our halal investing guide for how to weigh active against passive in a Pakistani portfolio.
Governance and screening
Al Meezan's Shariah board is chaired by Justice (Retd.) Mufti Taqi Usmani with Dr. Muhammad Imran Ashraf Usmani as SECP-registered advisor, and its six-screen KMI-30 methodology is published in full: halal business, debt below 37% of assets, non-compliant investments below 33%, non-compliant income below 5% purified to charity, illiquid assets at 25% or more, and price above net liquid assets per share. NBP publishes its three-scholar board and standard screens. Both are credible; Al Meezan's documentation is more complete and its scholars more senior.
Verdict: who should pick which
Pick Al Meezan if the institution-level purity test matters to you, if you can meet the Rs 500,000 money market minimum, or if you want cheap passive equity exposure through the index fund or ETF. As the default halal investing relationship in Pakistan, backed by the largest AUM, the deepest scholar bench, and Meezan Bank's distribution, it earns its position.
Pick NBP Funds if you are starting small (Rs 1,000 gets you into an award-winning Islamic income product), if you value its retail plumbing (Pakistan's first AMC debit card, 45-minute SwiftPay redemptions up to Rs 7.5 million, WhatsApp self-service), and if the dual conventional-Islamic shelf does not trouble you. Its Islamic fixed-income record is genuinely strong. Just go in knowing that the purity argument, the undated AUM headline, and the legacy holdings disclosure all sit on NBP's side of the ledger.
Frequently asked questions
Is NBP Funds fully Islamic?
No. NBP Funds runs a dual shelf: a large Islamic suite alongside a full conventional lineup. The Islamic funds are separately screened and governed by a named Shariah board, but the firm as a whole also manages interest-based products. Al Meezan manages Shariah-compliant funds only.
Which has lower minimums?
NBP. Its Islamic Savings Fund opens at Rs 1,000. Al Meezan's standard fund minimums are Rs 5,000, and its popular Rozana Amdani money market fund requires Rs 500,000. For very small starting amounts, NBP is the practical choice between the two.
Who performed better in FY26?
On flagship equity, Al Meezan's Meezan Islamic Fund returned +33.22% for the year ended June 30, 2026, while the KMI-30 rose +39.18%; NBP's Islamic Stock Fund tracks the same benchmark at nearly identical pricing. On money markets, industry returns clustered near 9.5%, with NBP's flagship showing 11.8% per year since inception. Neither firm's active equity beat the index in FY26.
Which is better for a monthly income?
Al Meezan's Rozana Amdani pays a daily dividend at a 1.10% fee if you clear the Rs 500,000 minimum. NBP's Islamic Daily Dividend Fund (Rs 13.74 billion, AA+ stability rating) serves the same need with lower entry. Compare current fund manager reports before committing.
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Do both offer Islamic pension funds?
Yes. Al Meezan runs the Meezan Tahaffuz Pension Fund (Rs 47.31 billion at June 30, 2026, Pakistan's largest Islamic VPS) and NBP runs the NAFA Islamic Pension Fund (Rs 15.32 billion). Both offer the 20%-of-income tax credit; see our retirement hub for the full VPS comparison.