How often do Islamic equity funds lose money?
20 Shariah-compliant equity funds in Pakistan, Sept 2016 to Sept 2026, payouts reinvested. Every month-end is a starting point.
- Held 1 year
- 42%of 2,004 holds lost money
- Held 3 years
- 29%of 1,524 holds lost money
- Held 5 years
- 34%of 1,055 holds lost money
- Typical worst fall
- -54.8%median fund; recovery 3 yrs 8 mo
A year in an Islamic equity fund ended in a loss about 4 times in 10. Over three years that fell to 29%, and over five years to 34%. The median fund’s worst fall was -55% from its high (18 of 20 funds bottomed out in the 2017–2020 decline), and 20 of 20 have since recovered.
Fund by fund
| Fund | Worst fall | Recovered in | 1-year holds that lost | 5-year holds that lost |
|---|---|---|---|---|
| Pak Qatar Islamic Stock Fund Pak-Qatar · since Sept 2022 | -19.7% Dec 2024 – May 2025 | 2 mo | 3% | Under 5 yrs |
| Faysal Islamic Stock Fund Faysal · since Jul 2020 | -35.9% Jun 2021 – Jun 2023 | 10 mo | 33% | 0% |
| Al Ameen Islamic Energy Fund UBL · since Dec 2019 | -42.1% Jan 2020 – Mar 2020 | 3 yrs 4 mo | 21% | 0% |
| Atlas Islamic Stock Fund Atlas · since Sept 2016 | -46.1% May 2017 – Mar 2020 | 1 yr 3 mo | 39% | 18% |
| Al Ameen Shariah Stock Fund UBL · since Sept 2016 | -47.9% May 2017 – Mar 2020 | 3 yrs 7 mo | 39% | 13% |
| HBL Islamic Equity Fund HBL · since Sept 2016 | -49.5% May 2017 – Mar 2020 | 4 yrs 3 mo | 44% | 41% |
| Alhamra Islamic Stock Fund MCB · since Sept 2016 | -50.8% May 2017 – Mar 2020 | 3 yrs 8 mo | 45% | 36% |
| AKD Islamic Stock Fund AKD · since Feb 2018 | -52.8% Apr 2018 – Mar 2020 | 3 yrs 8 mo | 40% | 21% |
| Alfalah GHP Islamic Stock Fund Alfalah · since Sept 2016 | -53.6% May 2017 – Mar 2020 | 3 yrs 8 mo | 44% | 33% |
| ABL Islamic Stock Fund ABL · since Sept 2016 | -54.6% May 2017 – Mar 2020 | 3 yrs 8 mo | 45% | 34% |
| AL Habib Islamic Stock Fund AL Habib · since Sept 2016 | -54.9% May 2017 – Mar 2020 | 3 yrs 8 mo | 40% | 34% |
| Al Meezan Mutual Fund Al Meezan · since Sept 2016 | -56.1% May 2017 – Mar 2020 | 3 yrs 8 mo | 44% | 36% |
| Meezan Islamic Fund Al Meezan · since Sept 2016 | -57.0% May 2017 – Mar 2020 | 3 yrs 8 mo | 44% | 36% |
| JS Islamic Fund JS · since Sept 2016 | -57.3% May 2017 – Mar 2020 | 4 yrs 3 mo | 48% | 43% |
| NIT Islamic Equity Fund National Investment Trust · since Sept 2016 | -57.6% May 2017 – Mar 2020 | 4 yrs 1 mo | 48% | 41% |
| AWT Islamic Stock Fund AWT · since Sept 2016 | -58.2% May 2017 – Mar 2020 | 4 yrs 7 mo | 47% | 43% |
| NBP Islamic Stock Fund NBP · since Sept 2016 | -58.2% May 2017 – Mar 2020 | 4 yrs | 45% | 36% |
| HBL Islamic Stock Fund HBL · since Sept 2016 | -59.8% May 2017 – Mar 2020 | 4 yrs 8 mo | 45% | 44% |
| NBP Islamic Energy Fund NBP · since Sept 2016 | -60.0% May 2017 – Mar 2020 | 3 yrs 10 mo | 45% | 43% |
| Meezan Energy Fund Al Meezan · since Nov 2016 | -60.0% May 2017 – Mar 2020 | 4 yrs 1 mo | 49% | 41% |
Method: total return with every payout reinvested at the ex-NAV, from MUFAP NAVs as published, before sales loads and taxes, over each fund’s last 10 years with verified payout data (up to 19 Sept 2026). Funds with under three years of data or no recent NAV are left out. A hold starts at one month-end and ends one, three or five years later; pooled shares weight funds with longer histories more. Isolated NAV values that look like recording errors are skipped. Past returns do not predict future ones. Information, not investment advice.
Questions this data answers
Can Islamic equity funds lose money?
Yes. Across 20 Shariah-compliant equity funds in Pakistan over the last 10 years, 42% of one-year holds (every month-end start, payouts reinvested) ended with a loss. The worst one-year result was -46.3%. Equity funds hold PSX shares, so their value falls when the market falls.
How long should you stay invested in an Islamic equity fund?
The longer the hold, the less often it lost money in this data: 42% of one-year holds lost money, 29% of three-year holds and 34% of five-year holds. Past results do not guarantee the same in future, and a longer hold reduced, but did not remove, the chance of a loss.
How much can an Islamic equity fund fall?
The typical (median) fund's worst fall in the last 10 years was -54.8% from its previous high, with payouts reinvested. The deepest was Meezan Energy Fund at -60.0%. 18 of 20 funds hit that low point during the 2017–2020 market decline.
How long do Islamic equity funds take to recover from a fall?
20 of 20 funds have climbed back to their previous high after their worst fall; the median recovery took 3 yrs 8 mo from the bottom. The others are still below that high. Each fund page shows its own worst fall and recovery.