Detailed Investment Breakdown of Mutual Funds: Banking, top invested sector with investment worth Rs. 2.36 arba; NTC top invested company followed by Everest Bank and NABIL Promoter
- ShareSansar, September 7, 2017 on Exclusive , Featured , Financial Analysis , Latest , Stock Market
Mutual funds are considered the safest sectors for those who are beginners in the stock market. As they are the one who accumulates the fund from public through Initial Public Offering (IPO) by selling unit of shares mostly at par value of Rs 10 only. The returns provided by existing mutual funds are quite satisfactory as the cash dividends they offer to their unit holders are higher than the market interest rate and fixed deposit schemes as well.
Mutual funds are the big investors in the market who mainly invest their funds in shares, certain portion in debentures and bonds, fixed deposit scheme and so on. The portfolio managed by mutual funds are also quite informative for small investors as they are the one who pour money by doing deep analysis. Taking that into account, we have analyzed which sector is mostly preferred by the veteran officials managing the whole funds from the reports as published by the respective mutual funds.
There are altogether 11 mutual funds in the market, and still 6 more funds are seeking approval from Securities Board of Nepal (SEBON) to issue IPO which will be coming in the market soon.
Among the 213 listed companies in Nepal Stock Exchange (NEPSE), mutual funds has invested in 149 companies, with investment exceeding Rs. 7.69 arba, where shares of all listed commercial banks held by different mutual funds is worth Rs 2.36 arba. In 14 non-life insurance and 32 microfinance, investment worth Rs 1.11 arba and Rs 1.32 arba are held respectively by mutual funds.3
Till Shrawan end, FY 2074/75; mutual funds hold the maximum investment in Nepal Doorsanchar Company Limited with total investment of Rs. 29 crores, followed by Everest Bank Limited and Nabil Bank Limited Promoters Share with investment of Rs. 27.78 crores and Rs. 27.48 crores respectively. The top holding of mutual funds in different companies of different sectors is briefed in the table as:-
Likewise, the top 10 sector-wise breakdown of the investment done by mutual fund stands as:
Everest Bank Limited (EBL) is the top invested commercial bank by mutual funds followed by Himalayan Bank Limited (HBL) and Standard Chartered Bank (SCB). Likewise, Muktinath Bikas Bank Limited (MNBBL) is the top invested development bank along with Sana Kisan Bikas Bank Limited (SKBBL) in the microfinance sector, Chilime Hydropower (CHCL) in the hydropower sector, NLG Insurance (NLG) in the non-life insurance sector while, Citizens Investment Trust (CIT) is the top investment in the finance sector.
Similarly, Nepal Life Insurance Company (NLIC) is the top invested life-insurance company with Siddhartha Investment Growth Scheme-1 (SIGS-1) being the most favored mutual fund investment. In terms of investment in promoters share, Nabil Bank’s Promoters Share (NABILP) top the list and Nepal Doorsanchar is the most invested company in the others sector by mutual funds. Lastly, Unilever Nepal Limited (UNL) and Everest Bank Limited Preference Share (EBLCP) are the only invested companies in the manufacturing and preference share sector. EBLCP is the only preference share listed in NEPSE.
- Sijan Bajracharya
- Deep Thapa
- Anu Lama