Current Scenario of Mutual Funds Investments; NTC, EBL & NABILP are favourites of mutual funds

 “Mutual funds are for experts and is not suitable for beginners” one of the biggest myths revolving around mutual funds. While this myth is not true, mutual funds are easy to understand and are one of the safest forms of investments. Understanding mutual funds requires one to know about the NAV (Net Asset Value) and NAV are nothing but a calculation of value per share of a mutual fund on a specific date. More detailed articles revolving around mutual funds and NAVs will be published later on the site. However, for now, we look at the current figures relating to mutual fund investment as per the monthly reports published by the merchant banks regarding the mutual funds. Currently, there are 11 mutual funds in Nepalese financial market. These 11 mutual funds are managed by 6 merchant banks. Laxmi Equity Fund (LEMF) recently floated its public issue and had already been listed in Nepal Stock Exchange Limited (NEPSE) commencing its trading from Sharawan 15. The mutual funds in Nepal along with the issuing merchant banks are:

S. No	Mutual Funds	Issuing Merchant Bank
1 2	Laxmi Value Fund (LVF-1) Laxmi Equity Fund (LEMF)	Laxmi Capital Market Limited
3	Global IME Sammunat Scheme (GIMES1)	Global IME Capital Limited
4 5	NMB Hybrid Fund L-1 (NMBHF1 NMB Sulav Investment Fund-1 (NMBSF1)	NMB Capital Limited
6 7	Nabil Balanced Fund-1 (NBF1) Nabil Equity Fund (NEF),	Nabil Investment Banking Limited
8 9	Siddhartha Investment Growth Scheme-1 (SIGS1) Siddhartha Equity Oriented Scheme (SEOS),	Siddhartha Capital Limited
10 11	NIBL Samriddhi Fund-1 (NIBSF1) NIBL Pragati Fund (NIBLPF)	NIBL Capital Markets Limited

Table 1 Mutual Funds and their issuing merchant banks These mutual funds in the Nepalese market have investment in about 152 companies with investment diversified in major sectors as banking, insurance, micro-finance, hydropower and hotels. The total investment by the 11 mutual funds in the Nepalese market exceeds NRs 7 billion and the interest in mutual funds in increasing day by day among the Nepalese investors. So, below is the detailed current scenario of mutual funds in Nepal; highlighting investments in different sectors. Current Scenario of Mutual Funds Investments As of Asadh, FY 2073/74; Mutual Funds holds the maximum investment in Nepal Doorsanchar Company Limited with investment of 279 million, followed by Everest Bank Limited and Nabil Bank Limited Promoters Share with 269 million and 249 million respectively. The top 10 investment of the mutual funds stands as:

S.N	Symbol	Company	Sector	Total (In NRs)
1	NTC	Nepal Doorsanchar Comapany Limited	Others	279,912,375
2	EBL	Everest Bank Limited	Banking	269,667,783
3	NABILP	NABIL Bank Limited Promotor Share	Promoters	249,024,880
4	NLICL	National Life Insurance Co. Ltd.	Life Insurance	246,902,700
5	NLIC	Nepal Life Insurance Co. Ltd.	Life Insurance	211,915,236
6	SCB	Standard Chartered Bank Limited	Banking	201,466,574
7	HBL	Himalayan Bank Limited	Banking	189,541,094
8	SICL	Shikhar Insurance Co. Ltd.	Non-Life Insurance	188,859,300
9	NLG	NLG Insurance Company Ltd.	Non-Life Insurance	183,851,910
10	SKBBL	Sana Kisan Bikas Bank Ltd	Lagubittaya	170,263,716

Table 2 Top 10 Mutual Funds investments Sector-wise Investment In terms of sector wise investment, the top 10 investment by mutual funds in different sector stands as:

1. Banking

Everest Bank holds the maximum investment with NRs. 269 million, followed by Standard Chartered Bank and Himalayan Bank Limited with Investment of NRs. 201 million and 189 million.

S.N	Symbol	Company	Sector	Total (In NRs)
1	EBL	Everest Bank Limited	Banking	269,667,783
2	SCB	Standard Chartered Bank Limited	Banking	201,466,574
3	HBL	Himalayan Bank Limited	Banking	189,541,094
4	SBI	Nepal SBI Bank Limited	Banking	124,455,975
5	SANIMA	Sanima Bank Limited	Banking	116,825,136
6	MBL	Machhapuchhre Bank Limited	Banking	95,420,880
7	PCBL	Prime Commercial Bank Ltd.	Banking	94,420,880
8	SBL	Siddhartha Bank Limited	Banking	94,897,610
9	NMB	NMB Bank Limited	Banking	92,583,590
10	BOKL	Bank of Kathmandu Ltd.	Banking	91,628,670
Total				1,370,908,192

 Table 3 Top 10  Mutual Funds investments (Banking )  

2. Development Banks

Similarly, in terms of development banks, MNBBL holds the maximum investment with NRs. 127 million followed by Garima BIkas Bank Limited with NRs. 69.97 million and Shine Resunga Development Bank with NRs. 20.23 million investments by mutual funds.

S.N	Symbol	Company	Sector	Total (In NRs)
1	MNBBL	Muktinath Bikas Bank Ltd.	Development	127,123,320
2	GBBL	Garima Bikas Bank Limited	Development	69,973,216
3	SHINE	Shine Resunga Development Bank Ltd.	Development	50,235,000
4	KBBL	Kailash Bikas Bank Ltd.	Development	41,436,132
5	ODBL	Om Development Bank Ltd.	Development	25,893,675
6	MDB	Miteri Development Bank Limited	Development	20,294,560
7	EDBL	Excel Development Bank Ltd.	Development	14,073,072
8	SADBL	Shangrila Development Bank Ltd.	Development	13,144,170
9	BLDBL	Biratlaxmi Bikas Bank Limited	Development	12,735,600
10	SBBIL	Sahayogi Bikas Bank Limited	Development	12,357,246
Total				387,265,991

 Table 3 Top 10  Mutual Funds investments (Banking ) (Note: - Prime commercial bank limited has recently acquired BLDBL at 75% swap ratio. Their joint operation had started from Baisakh 17, 2074.)*  

3. Finance

CIT has investment of NRs. 56 million being the top invested company in the finance sector, preceding SFFIL and CFCL with NRs. 9.24 and NRs. 4.8 million.

S.N	Symbol	Company	Sector	Total (In NRs)
1	CIT	Citizen Investment Trust	Finance	56,240,600
2	SFFIL	Shrijana Finance (Bittaya Sanstha)	Finance	9,243,750
3	CFCL	Central Finance Co. Ltd.	Finance	4,808,043
4	ICFC	ICFC Finance Limited	Finance	4,342,752
5	GFCL	Goodwill Finance Co. Ltd.	Finance	1,848,999
6	GMFIL	Guheshowori Merchant Bank & Finance Co. Ltd.	Finance	1,348,083
7	MFIL	Manjushree Finance Ltd.	Finance	887,835
8	UFL	United Finance Ltd.	Finance	68,845
9	RLFL	Reliance Finance Ltd.	Finance	5,300
Total				78,794,207

 

4. Hotels

The 3 invested hotels with their investment amounts are:

S.N	Symbol	Company	Sector	Total (In NRs)
1	OHL	Oriental Hotels Limited	Hotel	43,807,536
2	SHL	Soaltee Hotel Limited	Hotel	34,720,980
3	TRH	Taragaon Regency Hotel Limited	Hotel	16,787,520
Total				95,316,036

   

5. Hydro

Mutual funds hold the most investment in Chilime Hydropower Company Limited with total of NRs. 150 million. The next two big investments in Hydropower sector is in Butwal Power Company Limited and Sanima Mai Hydropower Limited with NRs. 73.39 million and NRs. 27.01 million investments.

S.N	Symbol	Company	Sector	Total (In NRs)
1	CHCL	Chilime Hydropower Company Limited	Hydro	150,957,660
2	BPCL	Butwal Power Company Limited	Hydro	73,399,320
3	SHPC	Sanima Mai Hydropower Ltd.	Hydro	27,013,504
4	SPDL	Synergy Power Development Ltd.	Hydro	12,056,445
5	UMHL	United Modi Hydropower Ltd.	Hydro	10,135,884
6	AKPL	Arun Kabeli Power Ltd.	Hydro	7,820,489
7	AHPC	Arun Valley Hydropower Development Co. Ltd.	Hydro	6,006,588
8	API	Api Power Company Ltd.	Hydro	5,536,655
9	RHPC	Ridi Hydropower Development Company Ltd.	Hydro	4,346,944
10	KKHC	Khanikhola Hydropower Co. Ltd.	Hydro	3,645,200
Total				300,918,689

 

6. Microfinance

Sana Kisan BIkas Bank Ltd holds the most investment with NRs. 170 million, followed by Deprosc Development and Chhimek Laghubitta each with NRs. 122 million and NRs. 119 million investments respectively.

S.N	Symbol	Company	Sector	Total (In NRs)
1	SKBBL	Sana Kisan Bikas Bank Ltd	Microfinance	170,263,716
2	DDBL	Deprosc Development Bank Limited	Microfinance	122,344,850
3	CBBL	Chhimek Laghubitta Bikas Bank Limited	Microfinance	119,206,200
4	SWBBL	Swabalamban Bikas Bank Limited	Microfinance	119,169,681
5	NUBL	Nirdhan Utthan Bank Limited	Microfinance	116,849,538
6	RMDC	Rural Microfinance Development Centre Ltd.	Microfinance	81,574,175
7	FOWAD	Forward Community Microfinance Bittiya Sanstha Ltd.	Microfinance	73,425,917
8	NLBBL	Nerude Laghubita Bikas Bank Limited	Microfinance	61,988,400
9	FMDBL	First Micro Finance Development Bank Ltd.	Microfinance	56,675,280
10	RSDC	RSDC Laghubitta Bittiya Sanstha Ltd.	Microfinance	45,863,650
Total				967,361,407

 

7. Life Insurance

National Life Insurance Co. Ltd (NLICL) tops the investment in Life insurance sector with 246 million investment preceding Nepal Life Insurance Co. Ltd and (ALICL) Asian Life Insurance Co Ltd with NRs. 211 and NRs.123 billion investment respectively.

S.N	Symbol	Company	Sector	Total (In NRs)
1	NLICL	National Life Insurance Co. Ltd.	Life Insurance	246,902,700
2	NLIC	Nepal Life Insurance Co. Ltd.	Life Insurance	211,915,236
3	ALICL	Asian Life Insurance Co. Limited	Life Insurance	123,104,772
4	LICN	Life Insurance Co. Nepal	Life Insurance	102,232,728
5	PLIC	Prime Life Insurance Company Limited	Life Insurance	93,188,515
6	GLICL	Gurans Life Insurance Company Ltd.	Life Insurance	11,306,700
7	SLICL	Surya Life Insurance Company Limited	Life Insurance	5,760,880
Total				794,411,531

 

8. Non-life Insurance

In terms non-life insurance, (SICL) Shikhar Insurance Co. Ltd with NRs. 188 million investments is the top invested company in non-life sector followed by NLG Insurance with NRs. 183 million and Sagarmatha Insurance with NRs. 145 million.

S.N	Symbol	Company	Sector	Total (In NRs)
1	SICL	Shikhar Insurance Co. Ltd.	Non-Life Insurance	188,859,300
2	NLG	NLG Insurance Company Ltd.	Non-Life Insurance	183,851,910
3	SIC	Sagarmatha Insurance Co. Ltd.	Non-Life Insurance	145,441,500
4	SIL	Siddhartha Insurance Ltd.	Non-Life Insurance	135,337,500
5	NIL	Neco Insurance Co. Ltd.	Non-Life Insurance	76,958,469
6	PRIN	Prabhu Insurance Ltd.	Non-Life Insurance	75,443,000
7	LGIL	Lumbini General Insurance Co. Ltd.	Non-Life Insurance	74,154,480
8	PIC	Premier Insurance Co. Ltd.	Non-Life Insurance	69,359,290
9	HGI	Himalayan General Insurance Co. Ltd	Non-Life Insurance	23,356,495
10	NICL	Nepal Insurance Co. Ltd.	Non-Life Insurance	18,748,730
Total				991,510,674

 

9. Mutual Funds

Mutual funds can invest in other mutual funds as well. Likewise, SIGS1 has the biggest investment with NRs. 43 million followed by NMBSF1 and NBF1 with NRs. 38 million and NRs. 26 million respectively.

S.N	Symbol	Company	Sector	Total (In NRs)
1	SIGS1	Siddhartha Investment Growth Scheme-1	Mutual Fund	43,531,492
2	NMBSF1	NMB Sulav Investment Fund-1	Mutual Fund	38,028,613
3	NBF1	Nabil Balance Fund 1	Mutual Fund	26,637,375
4	SEOS	Siddhartha Equity Orineted Scheme	Mutual Fund	10,376,314
5	NEF	Nabil Equity Fund	Mutual Fund	3,379,500
6	NMBHF1	NMB Hybrid Fund L-1	Mutual Fund	1,730,932
Total				123,684,226

10. Promoters

The mutual funds also hold the promoters shares of different companies. NABILP has the biggest investment with 249 along with NIBPO and CCBLPO with NRs165 and NRs 22 million. The top 10 promoters shares held by mutual funds are as:  

S.N	Symbol	Company	Sector	Total (In NRs)
1	NABILP	NABIL Bank Limited Promotor Share	Promoters	249,024,880
2	NIBPO	Nepal Investment Bank Ltd. Promoter Share	Promoters	165,594,342
3	CCBLPO	Century Commercial Bank Ltd. (Promoters)	Promoters	22,060,159
4	SRBLPO	Sunrise Bank Ltd Promoter Share	Promoters	12,263,346
5	FBBLPO	Fewa Bikas Bank Ltd. Promoter Share	Promoters	7,082,790
6	RBCLPO	Rastriya Beema Company Limited Promoter Share	Promoters	4,131,750
7	KDBLPO	Kasthamandap Dev. Bank Ltd Promoter Share	Promoters	2,641,266
8	CFCLPO	Central Finance Ltd. Promoter Share	Promoters	1,905,300
9	RLFLPO	Reliance Finance Ltd. Promoter Share	Promoters	40,068
Total				464,743,901

 

12. Preference, Manufacturing and Others

Lastly, mutual funds hold investments in these sectors too and their investment amount stands as:

S.N	Symbol	Company	Sector	Total (In NRs)
1	NTC	Nepal Doorsanchar Comapany Limited	Others	279,912,375
2	HIDCL	Jalabidyut Lagani tatha Bikas Co. Ltd.	Others	55,791,385
1	EBLCP	Everest Bank Limited Con. Pref.	Preference	1,354,200
8	UNL	Uniliver Nepal Limited	Manu	47,602,520
Total				384,660,480

  Likewise, six mutual funds have applied for approval with the Securities Board of Nepal (Sebon) to issue schemes worth NRs 6.1 billion. Siddhartha Equity Fund, Global IME Balance Fund-1, Sanima Equity Fund, Citizen Mutual Fund-1, NIC Asia Growth Fund and NIBL Sahabhagita Fund  are offering primary shares at Rs 10 per unit. Applying for their first ever mutual funds schemes are Sanima Capital Limited and CBIL Capital Limited with their schemes as ‘Sanima Equity Fund’ and ‘Citizen Mutual Fund-1’ respectively. The “Citizen Mutual Fund-1” fund is managed by CZBIL Capital Limited and Citizens Bank  is the fund sponsor. The Citizen Mutual Fund-1 is worth NRs 1 billion with 100 million shares. While “Sanima Equity Fund” worth NRs 1.20 billion of 120 million units shares is managed by Sanima Capital Limited and the fund sponsor is Sanima Bank. . Similarly, issuing its third mutual fund ‘Siddhartha Equity Fund’ of 120 million units worth Rs 1.20 biliion is Siddhartha Capital Limited. Siddhartha Capital is the fund manager and Siddhartha bank is the fund sponsor of this scheme.  Siddhartha Investment Growth Scheme (SIGS1) and Siddhartha Equity Oriented Scheme (SEOS) are the two mutual funds issued earlier by Sidhartha Capital.   Global IME Capital Limited is also coming out with mutual fund scheme named Global IME balanced fund-1 managed and sponsored by Global IME Capital Limited, a wholly owned subsidiary of Global IME Bank limited worth NRs 1.20 billion with 120 million no. of shares Global IME already has Global IME Sammunati Scheme-1 (GIMES-1) been listed in NEPSE. NIC Asia Capital Limited is also coming out with its first ever mutual fund scheme named NIC Asia Growth fund which will be managed by NIC Asia Capital. NIC Asia Growth Fund will be issuing public issue of 100 million units worth Rs 1 billion. Lastly, NIBL Capital Markets Limited is also coming out with mutual fund scheme named NIBl Sahabhagita Fund; a scheme managed by NIBL Capital Markets Limited, a wholly owned subsidiary of Nepal Investment Bank limited. NIBL Sahabhagita Fund is worth NRs 500 million. NIBL Samriddhi Fund-1 and NIBl Pragati Fund are the two mutual funds by NIBL Capital Markets and are both are listed in Nepal Stock Exchange Limited.