In FY26, Pakistan's equity market posted a strong performance, with the KSE-100 Index gaining ~43.52% during the year, supported by continued macroeconomic stability and improving investor confidence. The rally was reinforced by sustained progress under the International Monetary Fund (IMF) program and continued external financing, while the State Bank of Pakistan's foreign exchange reserves strengthened to above ~USD 18bn by year-end. Easing inflation, a relatively stable PKR, and resilient remittance inflows further supported liquidity and market sentiment. Within the Equity Fund category, PACRA rated four out of twenty two funds, with the category's average return at ~30.85%. First Capital Mutual Fund earned a 3-Star Ranking, delivering a 1-year return of ~34.4%. As of Jun'26, the Fund maintained ~92% in Equities, ~4% in Cash, and the remaining in Others. Major sector allocations included ~22% in Commercial Banks., ~16% in Oil & Gas Exploration Companies, ~9% in Fertilizers, ~8% in Cement, ~6% in Oil & Gas Marketing Companies, and the remaining in Others.

Over the past three years, Pakistan's equity market navigated elevated inflationary pressures, sharp currency depreciation, external financing challenges, and political uncertainty, alongside a prolonged high interest rate environment. Despite these macroeconomic headwinds, the KSE-100 Index delivered cumulative gains of ~334.96% over the period, supported by stabilization under the IMF program, subsequent monetary easing, strengthening foreign exchange reserves, improving external account indicators, and resilient corporate earnings, positioning Pakistan among the best-performing frontier markets during the period. Equity category showed resilience, with the 3-year average return at ~246.67%. First Capital Mutual Fund earned a 3-Star Ranking, delivering a 3-year return of ~226%. As of Jun'26, the Fund maintained ~92% in Equities, ~4% in Cash, and the remaining in Others. Major sector allocations included ~22% in Commercial Banks., ~16% in Oil & Gas Exploration Companies, ~9% in Fertilizers, ~8% in Cement, ~6% in Oil & Gas Marketing Companies, and the remaining in Others.

Over the past five years, Pakistan's equity market faced elevated inflation, sharp PKR depreciation, external financing pressures, and prolonged political uncertainty. However, improving macroeconomic stability, continued support under the IMF program, strengthening foreign exchange reserves, and monetary easing since CY23 drove a strong market recovery, with the KSE-100 Index delivering cumulative gains of ~280.74% over the period, positioning Pakistan among the top-performing frontier markets. Despite these challenges, the Equity category remained resilient, generating an average cumulative 5-year return of ~175.45%. First Capital Mutual Fund earned a 3-Star Ranking, delivering a 5-year return of ~145%. As of Jun'26, the Fund maintained ~92% in Equities, ~4% in Cash, and the remaining in Others. Major sector allocations included ~22% in Commercial Banks., ~16% in Oil & Gas Exploration Companies, ~9% in Fertilizers, ~8% in Cement, ~6% in Oil & Gas Marketing Companies, and the remaining in Others.