Does your investment portfolio look alike to the mutual fund’s? Know which companies were prioritized for investment by mutual fund last month

There are currently 13 mutual funds schemes run by 9 fund management companies. Mutual funds are still in the infant stage in our country. The status of mutual funds is still sensitive as investors lack financial awareness on these funds. The article has evaluated the top companies mutual funds in Nepal preferred as their investment in the month of Chaitra, 2074. This will be of help to investors seeking investment decisions. Mutual funds are comprised with professionals and experts thus; their investment is relied upon by many investors to create their own portfolio.

Sector-wise Breakdown

As of the end of Chaitra 2074, the 13 mutual funds have a total investment value of Rs 5.17 arba in equities. Investment in commercial banking industry accounts for the highest sector-wise investment at Rs 2.05 arba. Likewise, they have investment of Rs 1.31 arba in shares of insurance companies, accounting for the second-highest sector-wise value. Microfinance sector stands at the third highest investment priority for mutual funds with an investment worth Rs 82.13 crores.

Here is the pie chart representation of the sectorial investment preferred by mutual funds:

Commercial banks:

Among the commercial banks, Promoter Share of NABIL Bank (NABILP) is seen as the top priority for investment by mutual funds. It accounts an investment worth Rs 27.55 crores. Everest Bank Limited (EBL) and Promoter Shares of Nepal Investment Bank Limited (NIBPO) stands at the second and third position respectively. EBL has an investment Rs 16.65 crore. Mutual funds invested in NIBPO worth Rs 15.40 crores.

Here is the pie chart representation of top ten commercial banks preferred by mutual fUnds for investment as of Chaitra, 2074:

Development Banks:

As for the development banks, Muktinath Bikas Bank Limited (MNBBL) has the highest investment preference among mutual funds. The mutual funds have invested an amount worth Rs 8.35 crores. Kailash Bikas Bank Limited (KBBL) is seen in the second position with an investment worth Rs 2.63 crores. Finally, Excel Development Bank Limited (EDBL) has an investment of Rs 2.39 crores at the third position.

Here is the pie chart representation of all the top ten development banks preferred for investment for Chaitra, 2074.

Microfinance companies:

Among the listed microfinance companies, Sana Kisan bikas Bank Ltd. (SKBBL), Deprosc Development Bank Ltd. (DDBL), and Chhimek Laghubitta Bikas Bank Ltd. (CBBL) were the top three investment priorities for mutual funds. Mutual funds invested Rs 16.25 crores in Sana Kisan, Rs 10 crores in Deprosc Development and Rs 8.82 crores in Chhimek Laghubitta Bikas Bank Limited.

The following pie chart shows what percentage of investment is made in which microfinance institutes:

Insurance companies:

Among the life and non-life insurance companies in Nepal, National Life Insurance Company Limited (NLICL), Nepal Life Insurance Company Limited (NLIC) and Life Insurance Company Limited (LICN) are the investment companies of top priorities for mutual funds. Mutual funds schemes have around Rs 18.69 crore investments in NLICL, Rs 18.67 crore investments in NLIC and Rs 15.35 crore investment in LICN.

Here is the pie chart representation of the insurance companies given high weightage by mutual funds:

Hydropower companies:

The inclination of investment in hydropower companies for mutual funds was in Chilime Hydropower Company (CHCL) with an investment of Rs 12.92 crore, Butwal Power Company Limited (BPCL) with an investment of Rs 7.33 crore and Sanima Mai Hydropower Company (SHPC) with an investment of Rs 3.74 crore.

Here is the pie chart representation for top hydropower companies invested by mutual funds as of Chaitra, 2074:

Finance:

As for finance companies, the top three investments were Shrijana Finance (SFFIL), Goodwill Finance (GFCL) and ICFC Finance Limited (ICFC). Mutual funds invested an amount of Rs 52.71 lakh in Shrijana Finance, Rs 25.90 in Goodwill Finance and Rs 17.22 lakh in ICFC Finance Limited.

The provided information are further represented in pie chart:

Hotels:

Among the three listed hotels in NEPSE, mutual funds have given higher priority to Oriental Hotels Limited (OHL) with an investment of Rs 3.44 crore. It accounts for 54.29% of investment in the overall hotel sector.

Here is the pie chart representation of the same:

Mutual fund:

The mutual fund schemes also invest in other mutual funds. The mutual funds have preferred NMB Sulav Investment Fund 1 (NMBSF1) as the best scheme for investment. It has an investment that accounts to Rs 1.86 crore. Siddhartha Equity Oriented Scheme (SEOS) falls under the second highest investment value mutual fund. It has an investment of Rs 1.78 crore. Finally, NABIL Balance Fund (NBF1) has a third highest investment of Rs 37 lakh. Investors looking for investing in mutual funds can also consider these ranking.

Here is the pie chart representation of these mutual funds as per the percentage of investment in Chaitra, 2074:

Manufacturing & Production:

Mutual funds have invested Rs 1.02 crore in Unilever Nepal Limited (UNL) as of Chaitra, 2074.

Others:

As for the others sector, mutual funds have invested Rs 14.95 crore in Citizen Investment Trust (CIT), Rs 1.72 crore in Jalabidyut Lagani Tatha Bikas (HIDCL) and Rs 16.28 crore investment in Nepal Doorsanchar Company Limited (NTC).

Here is the final pie chart representation:

Hence, the overall analysis draws the top companies preferred by mutual funds for investment. This article might be helpful to the aspiring investors in the secondary market. What are your views on the mutual funds? Do you think the top investment decisions made by mutual funds are backed up with rationality? Please write to us in the comment section below.

(Disclaimer:  Any kind of information that is provided in the article should not be used as a sole advice or recommendation by investors in order to design their investment portfolio. So, before taking steps for any kind of the information, the investors are required to base their judgment on their own financial analysis, appropriateness of the information and seek independent financial advice. The information of the company has been taken from the authorized sources such as website of the company, NEPSE, financial reports and press releases of the companies so, any changes not updated in these may differ in the analysis.)