There are 17 mutual funds in the country currently. Out of 17, Laxmi Value Fund (LVF1), Siddhartha Equity Oriented Scheme (SEOS), Siddhartha Investment Growth Scheme (SIGS1), Nabil Balance Fund (NBF1) and NMB Sulav Investment Fund-1 (NMBSF1) got matured recently. Nabil Balance Fund 2 (NBF2), Citizens Mutual Fund 2 (CMF2), NMB 50 (NMB 50), NIC Asia Balanced Fund (NICBF), Siddhartha Investment Growth Scheme - 2 (SIGS2), NIBL Sahabhagita Fund (NIBLSF) (open end mutual fund) and Sunrise First Mutual Fund (SFMF) are new mutual funds added to the list.
Mutual funds have an investment in listed/unlisted funds of Rs.10.02 Arba in Asadh, 2077 compared to Rs.8.96 Arba in Jestha. Similarly, mutual funds have slightly increased bank balance from Rs.5.08 Arba in Jestha to Rs.5.18 Arba in Asadh. Mutual funds investment in debentures and bonds amounts to Rs.1.09 Arba. Similarly, the funds also have invested 1.81% in primary shares which amounts to Rs.32.69 Crores.
The top investments by mutual funds irrespective of sectors in the month of Asadh are as follows:
The top most bought stocks in Asadh by the overall mutual fund industry are as follows:
The top most sold stocks in Asadh by the overall mutual fund industry are as follows:
Investment in commercial banking industry accounts for the highest sector-wise investment of Rs.4.32 Arba, making up 51.66% of total investment. Likewise, they have investment of Rs.86.68 Crores in shares of microfinance companies, accounting for 10.35% of total investment. Life Insurance sector stands at the third highest investment priority for mutual funds with an investment worth Rs.57.78 Crores, contributing 6.90% of total investments.
Among the commercial banks, Nabil Bank Limited (NABIL) is seen as the top priority for investment by mutual funds. It accounts an investment worth Rs.46.02 Crores. Nepal Bank Limited (NBL) stands at the second position with investment of Rs.33.52 Crores. NIC Asia Bank Limited (NICA) stands with the investment of Rs.27.16 Crores.
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.20.06 Crores. Garima Bikas Bank Limited (GBBL) is seen in the second position with an investment worth Rs.9.26 Crores. Shine Development Bank Limited (SHINE) has an investment of Rs.8.50 Crores at the third position.
As for finance companies, the top three investments were ICFC Finance Limited (ICFC), United Finance Limited (UFL) and Guheswori Merchant Banking and Finance Limited (GMFIL). Mutual funds invested an amount of Rs.46.02 lakhs in ICFC, Rs.39.08 Lakhs in UFL and Rs.30.74 Lakhs in GMFIL.
Among the three listed hotels in NEPSE, mutual funds have given higher priority to Oriental Hotels Limited (OHL) with an investment of Rs.2.04 Crores.
The inclination of investment in hydropower companies for mutual funds was in Chilime Hydropower Company (CHCL) with an investment of Rs.15.11 Crores, Butwal Power Company Limited (BPCL) with an investment of Rs.10.13 Crores and Sanima Mai Hydropower Company (SHPC) with an investment of Rs.5.40 Crore.
Life Insurance companies:
Among the 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. 21.66 Crore investments in NLICL, Rs.19.39 Crore investments in NLIC and Rs.82.34 Crores investment in LICN.
Manufacturing & Production:
Mutual funds have invested Rs.6.13 Crores in Himalayan Distillery (HDL), Rs.1.58 crore in Bottlers Nepal Terai Limited (BNT), and Rs.80.55 Lakhs in Shivam Company Limited (SHIVM) as of Asadh, 2076.
Among the listed microfinance companies Chhimek Laghubitta Bikas Bank Ltd. (CBBL), Sana Kisan Bikas Bank Limited (SKBBL) and NIC Asia Laghubitta Bittiya Sanstha (NICLBSL) were the top three investment priorities for mutual funds. Mutual funds invested Rs.19.47 Crores in CBBL, Rs.13.68 Crores in SKBBL and Rs.10.12 Crores in NICLBSL.
The mutual fund schemes also invest in other mutual funds.
Sanima Equity Fund (SAEF) falls under the highest investment value mutual fund. It has an investment of Rs.1.68 crores. Citizens Mutual Funds (CMF1) has second highest equity fund of the value Rs.1.06 crores. Finally Sidhartha Equity Fund (SEF) has a third highest investment of Rs.1.02 crores.
Non-Life Insurance companies:
Among the non-life insurance companies in Nepal, Shikhar Insurance Company Limited (SICL), Neco Insurance Company Limited (NIL) and Siddhartha Insurance Company Limited (SIL) are the investment companies of top priorities for mutual funds. Mutual funds schemes have around Rs. 11.14 Crore investments in SICL, Rs.8.17 Crore investments in NIL and Rs.7.16 Crores investment in SIL.
As for the others sector, mutual funds have invested Rs.25.80 Crores in Nepal Doorsanchar Company Limited (NTC), Rs.10.36 Crores investment in Nepal Reinsurance Company Limited (NRIC), and Rs. 4.93 Cores in Citizens Investment Trust (CIT).
Preference shares and Promoter shares:
Similarly, the preference and promoter shares as per the choice of mutual funds are:
Analyzing the pattern of investment of mutual fund schemes can help the investor design their own investment portfolios, customize on the basis of risk taking capacity. It is also helpful for relatively new investors to make buy/sell decisions based on the decisions of the mutual funds schemes and safeguard themselves against some risk.
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.