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

- ShareSansar, August 9, 2017  on Exclusive , Featured , Latest , Mutual Fund , Stock Market
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 “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. NoMutual FundsIssuing Merchant Bank
1

2

Laxmi Value Fund (LVF-1)

Laxmi Equity Fund (LEMF)

Laxmi Capital Market Limited
3Global 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.NSymbolCompanySector Total (In NRs)
1NTCNepal Doorsanchar Comapany LimitedOthers              279,912,375
2EBLEverest Bank LimitedBanking              269,667,783
3NABILPNABIL Bank Limited Promotor SharePromoters              249,024,880
4NLICLNational Life Insurance Co. Ltd.Life Insurance              246,902,700
5NLICNepal Life Insurance Co. Ltd.Life Insurance              211,915,236
6SCBStandard Chartered Bank LimitedBanking              201,466,574
7HBLHimalayan Bank LimitedBanking              189,541,094
8SICLShikhar Insurance Co. Ltd.Non-Life Insurance              188,859,300
9NLGNLG Insurance Company Ltd.Non-Life Insurance              183,851,910
10SKBBLSana Kisan Bikas Bank LtdLagubittaya              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.NSymbolCompanySector Total (In NRs)
1EBLEverest Bank LimitedBanking              269,667,783
2SCBStandard Chartered Bank LimitedBanking              201,466,574
3HBLHimalayan Bank LimitedBanking              189,541,094
4SBINepal SBI Bank LimitedBanking              124,455,975
5SANIMASanima Bank LimitedBanking              116,825,136
6MBLMachhapuchhre Bank LimitedBanking                95,420,880
7PCBLPrime Commercial Bank Ltd.Banking                94,420,880
8SBLSiddhartha Bank LimitedBanking                94,897,610
9NMBNMB Bank LimitedBanking                92,583,590
10BOKLBank of Kathmandu Ltd.Banking                91,628,670
Total          1,370,908,192

 Table 3 Top 10  Mutual Funds investments (Banking )

 

  1. 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.NSymbolCompanySector Total (In NRs)
1MNBBLMuktinath Bikas Bank Ltd.Development127,123,320
2GBBLGarima Bikas Bank LimitedDevelopment69,973,216
3SHINEShine Resunga Development Bank Ltd.Development50,235,000
4KBBLKailash Bikas Bank Ltd.Development41,436,132
5ODBLOm Development Bank Ltd.Development25,893,675
6MDBMiteri Development Bank LimitedDevelopment20,294,560
7EDBLExcel Development Bank Ltd.Development14,073,072
8SADBLShangrila Development Bank Ltd.Development13,144,170
9BLDBLBiratlaxmi Bikas Bank LimitedDevelopment12,735,600
10SBBILSahayogi Bikas Bank LimitedDevelopment12,357,246
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.)*

 

  1. 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.NSymbolCompanySector Total (In NRs)
1CITCitizen Investment TrustFinance56,240,600
2SFFILShrijana Finance (Bittaya Sanstha)Finance9,243,750
3CFCLCentral Finance Co. Ltd.Finance4,808,043
4ICFCICFC Finance LimitedFinance4,342,752
5GFCLGoodwill Finance Co. Ltd.Finance1,848,999
6GMFILGuheshowori Merchant Bank & Finance Co. Ltd.Finance1,348,083
7MFILManjushree Finance Ltd.Finance887,835
8UFLUnited Finance Ltd.Finance68,845
9RLFLReliance Finance Ltd.Finance5,300
Total                78,794,207

 

  1. Hotels

The 3 invested hotels with their investment amounts are:

S.NSymbolCompanySector Total (In NRs)
1OHLOriental Hotels LimitedHotel43,807,536
2SHLSoaltee Hotel LimitedHotel34,720,980
3TRHTaragaon Regency Hotel LimitedHotel16,787,520
Total                95,316,036

 

 

  1. 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.NSymbolCompanySector Total (In NRs)
1CHCLChilime Hydropower Company LimitedHydro150,957,660
2BPCLButwal Power Company LimitedHydro73,399,320
3SHPCSanima Mai Hydropower Ltd.Hydro27,013,504
4SPDLSynergy Power Development Ltd.Hydro12,056,445
5UMHLUnited Modi Hydropower Ltd.Hydro10,135,884
6AKPLArun Kabeli Power Ltd.Hydro7,820,489
7AHPCArun Valley Hydropower Development Co. Ltd.Hydro6,006,588
8APIApi Power Company Ltd.Hydro5,536,655
9RHPCRidi Hydropower Development Company Ltd.Hydro4,346,944
10KKHCKhanikhola Hydropower Co. Ltd.Hydro3,645,200
Total              300,918,689

 

  1. 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.NSymbolCompanySector Total (In NRs)
1SKBBLSana Kisan Bikas Bank Ltd Microfinance170,263,716
2DDBLDeprosc Development Bank LimitedMicrofinance122,344,850
3CBBLChhimek Laghubitta Bikas Bank LimitedMicrofinance119,206,200
4SWBBLSwabalamban Bikas Bank LimitedMicrofinance119,169,681
5NUBLNirdhan Utthan Bank LimitedMicrofinance116,849,538
6RMDCRural Microfinance Development Centre Ltd.Microfinance81,574,175
7FOWADForward Community Microfinance Bittiya Sanstha Ltd.Microfinance73,425,917
8NLBBLNerude Laghubita Bikas Bank LimitedMicrofinance61,988,400
9FMDBLFirst Micro Finance Development Bank Ltd.Microfinance56,675,280
10RSDCRSDC Laghubitta Bittiya Sanstha Ltd.Microfinance45,863,650
Total              967,361,407

 

  1. 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.NSymbolCompanySector Total (In NRs)
1NLICLNational Life Insurance Co. Ltd.Life Insurance246,902,700
2NLICNepal Life Insurance Co. Ltd.Life Insurance211,915,236
3ALICLAsian Life Insurance Co. LimitedLife Insurance123,104,772
4LICNLife Insurance Co. NepalLife Insurance102,232,728
5PLICPrime Life Insurance Company LimitedLife Insurance93,188,515
6GLICLGurans Life Insurance Company Ltd.Life Insurance11,306,700
7SLICLSurya Life Insurance Company LimitedLife Insurance5,760,880
Total              794,411,531

 

  1. 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.NSymbolCompanySector Total (In NRs)
1SICLShikhar Insurance Co. Ltd.Non-Life Insurance188,859,300
2NLGNLG Insurance Company Ltd.Non-Life Insurance183,851,910
3SICSagarmatha Insurance Co. Ltd.Non-Life Insurance145,441,500
4SILSiddhartha Insurance Ltd.Non-Life Insurance135,337,500
5NILNeco Insurance Co. Ltd.Non-Life Insurance76,958,469
6PRINPrabhu Insurance Ltd.Non-Life Insurance75,443,000
7LGILLumbini General Insurance Co. Ltd.Non-Life Insurance74,154,480
8PICPremier Insurance Co. Ltd.Non-Life Insurance69,359,290
9HGIHimalayan General Insurance Co. LtdNon-Life Insurance23,356,495
10NICLNepal Insurance Co. Ltd.Non-Life Insurance18,748,730
Total              991,510,674

 

  1. 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.NSymbolCompanySector Total (In NRs)
1SIGS1Siddhartha Investment Growth Scheme-1Mutual Fund43,531,492
2NMBSF1NMB Sulav Investment Fund-1Mutual Fund38,028,613
3NBF1Nabil Balance Fund 1Mutual Fund26,637,375
4SEOSSiddhartha Equity Orineted SchemeMutual Fund10,376,314
5NEFNabil Equity FundMutual Fund3,379,500
6NMBHF1NMB Hybrid Fund L-1Mutual Fund1,730,932
Total              123,684,226
  1. 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.NSymbolCompanySector    Total (In NRs)
1NABILPNABIL Bank Limited Promotor SharePromoters249,024,880
2NIBPONepal Investment Bank Ltd. Promoter SharePromoters165,594,342
3CCBLPOCentury Commercial Bank Ltd. (Promoters)Promoters22,060,159
4SRBLPOSunrise Bank Ltd Promoter SharePromoters12,263,346
5FBBLPOFewa Bikas Bank Ltd. Promoter SharePromoters7,082,790
6RBCLPORastriya Beema Company Limited Promoter SharePromoters4,131,750
7KDBLPOKasthamandap Dev. Bank Ltd Promoter SharePromoters2,641,266
8CFCLPOCentral Finance Ltd. Promoter SharePromoters1,905,300
9RLFLPOReliance Finance Ltd. Promoter SharePromoters40,068
Total              464,743,901

 

  1. Preference, Manufacturing and Others

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

S.NSymbolCompanySector Total (In NRs)
1NTCNepal Doorsanchar Comapany LimitedOthers279,912,375
2HIDCLJalabidyut Lagani tatha Bikas Co. Ltd.Others55,791,385
1EBLCPEverest Bank Limited Con. Pref.Preference1,354,200
8UNLUniliver Nepal LimitedManu                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.

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