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How to Earn Monthly Income in Pakistan with Mutual Fund Investments (2025 Guide)


Are you looking for a reliable way to earn extra income every month without taking on a second job or starting a side hustle? One of the smartest, most accessible methods available in Pakistan today is investing in mutual funds — specifically income-focused mutual funds that pay monthly returns.

In this blog post, we’ll break down how mutual funds work, highlight the best income-generating options in the Pakistani market, and explain how you can get started even with a small amount of capital.

📌 What Are Mutual Funds?

Mutual funds pool money from multiple investors and invest it in a diversified portfolio of assets like government bonds, sukuks, equities, and money market instruments. They are managed by professional fund managers who aim to generate returns for investors.

💰 How Can Mutual Funds Provide Monthly Income?

Certain types of mutual funds — especially income funds and money market funds — are designed to generate regular payouts in the form of monthly or quarterly dividends. These payouts come from interest income, profit on sukuks, or capital gains, depending on the fund’s investment strategy.

🔍 Best Pakistani Mutual Funds for Monthly Income 

Here are some mutual funds in Pakistan that offer monthly returns and are ideal for generating a second income:

1. Meezan Rozana Amdani Fund (MRAF)

  • Fund Type: Shariah-compliant income fund

  • Minimum Investment: PKR 1,000

  • Why It’s Good: Offers daily profit calculation and flexible withdrawals.

2. UBL Liquidity Plus Fund

  • Fund Type: Conventional money market fund

  • Minimum Investment: PKR 500

  • Why It’s Good: Ideal for short-term investments with low risk and high liquidity.

3. Faysal Islamic Cash Fund

  • Fund Type: Shariah-compliant money market fund

  • Minimum Investment: PKR 5,000

  • Why It’s Good: Offers stable returns with daily compounding.

4. NBP Mahana Amdani Fund (NMAF)

  • Fund Type: Conventional income fund

  • Minimum Investment: PKR 1,000

  • Why It’s Good: Specifically designed for monthly income seekers, this fund distributes income on a monthly basis. Backed by NBP Fund Management, one of the most trusted names in Pakistan’s financial sector.

5. NBP Riba Free Mahana Amdani Fund

  • Fund Type: Shariah-compliant

  • Expected Return: Similar to conventional income fund (varies monthly)

  • Minimum Investment: PKR 1,000

  • Why It’s Good: Great option for Islamic investors seeking regular monthly returns.

🧠 Pro Tip:

NBP Funds also offer a “Direct Investment Portal” on their website, allowing you to invest and track your returns digitally without visiting a branch — perfect for busy professionals.

✅ Summary Table 

Fund NameType
Approx. Monthly Income on PKR 500,000Shariah-Compliant
Meezan Rozana Amdani FundIncome Fund
 PKR 5,400–6,250✅
UBL Liquidity Plus FundMoney Market
 PKR 6,250–6,600❌
Faysal Islamic Cash FundMoney Market
 PKR 5,800–6,250✅
NBP Mahana Amdani FundIncome Fund
 PKR 5,400–5,800❌
NBP Riba Free Mahana Amdani FundIncome Fund
 PKR 5,400✅

(This is not an investment advice. All investment in Mutual funds are subject to market risks. Please read the offering documents before making an investment decision. For latest returns please view respective funds fund managers report) 

📈 Realistic Monthly Income Example

Let’s say you invest PKR 500,000 in a fund offering 15% annual return:

  • Annual Income: PKR 75,000

  • Monthly Income: PKR 6,250

Even if you start smaller — say with PKR 100,000, you can still earn around PKR 1,250/month, enough to pay utility bills or mobile expenses.

🔐 Tips to Maximize Monthly Income

  • Reinvest profits initially to grow your principal faster.

  • Choose funds with low management fees.

  • Diversify across two or more funds for stability.

  • Regularly review fund ratings via MUFAP (Mutual Funds Association of Pakistan).

Final Thoughts

If you're serious about building an alternate income stream in Pakistan without high risk or effort, mutual funds are an excellent choice. With the right fund and a bit of patience, you can begin earning extra income every month, even starting small.

Don’t wait for the "perfect time" — the best time to invest was yesterday. The second-best time is today.

Ready to take the first step? Research your options, start small, and watch your money work for you!

This is not an investment advice. All investment in Mutual funds and Pension Funds are subject to market risks. Please read the offering documents before making any investment decision. For latest returns please view respective funds fund managers reports
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