Scheme Name: Siddhartha Investment Growth Scheme - I
- Base Size: NPR 400 million
- Maximum Size: NPR 500 million
- Minimum Size: NPR 200 million
- Maturity Date: 5 years from the date of units allotted
- Closing Date (Minimum): 2069/8/17
- Closing Date (Maximum): 2069/8/27
- Minimum Investment Units:100
- Minimum Investment Amount:NPR 1000
- Maximum Investment Units: 4 million
- Maximum Investment Amount: NPR 40 million
Fund Sponsor: Siddhartha Bank Ltd.
Asset Management Company and Depository: Siddhartha Capital Ltd.
Board of Directors of Siddhartha Capital Ltd.
1. Mr. Mohit Kedia, Chairman
Qualification: Chartered Accountant
Work Experience: In the field of Cement, Travel and Financial services industry.
2. Mr. Rahul Agrawal, Director
Qualification: Masters of Business Administration
Work Experience: In the field of cement, steel and paper industry and also had worked in various reputed banks in India and Nepal.
3. Mr. Sundar Prasad Kadel, Director
Qualification: Masters of Business Administration
Work Experience: 24 years in various capacities in the field of banking. Currently, he is the Deputy General Manager & Chief Operating Officer (COO) of Siddhartha Bank Limited.
4. Mr. Mahendra Nath Adhikari, Independent Director
Qualification: Masters of Commerce
Work Experience: Over 35 years of experience in the field of banking. He was also a board member of Siddhartha Insurance Limited for tenure of four years.
5. Mr. Kiran Thapa, Independent Director
Qualification: Masters of Business Administration
Work Experience: Academician by profession with more than 15 years of teaching experience. He is also a well know writer in the field of finance, till date he has published more than 14 books related to various financial subjects.
Management Team of Siddhartha Capital Ltd
Mr. Dhruba Timilsina (Chief Executive Officer)
Qualification: Masters of Business Administration
Work Experience: Worked with Securities Board of Nepal (SEBON) for 10 years. He is also involved in the teaching sector as he teaches Finance to bachelors and masters level students. He has also got exposure to the foreign securities market and he has participated and presented papers in various securities market programs organized in USA, Japan, Korea, China, Indonesia, Thailand, India and Nepal.
Mr. Mekh Bahadur Thapa (Chief Operating Officer)
Qualification: Chartered Accountant
Work Experience: He has worked with SEBON for about 4 years and headed the Financial Information Analysis, Management and International Affairs Department. He has more than 5 years of working experience in various fields such as accounting, auditing, financial analysis and securities market. He has been teaching Financial Management, Derivatives and Accounting in various colleges.
Fund Supervisiors
1. Dr. Ram Krishna Timalsena
Qualificaition: Master of Comparative Law in Corporate Law and obtained a PhD degree in Law (Right to Information) in 2002 from University of Delhi.
Work Experience: More than 25 years of work experience in the Nepalese judicial system. At the Supreme Court, he worked in the capacity of Registrar. He is equally involved in teaching and has taught subjects Business Law, Media Law etc., in various colleges of Nepal. He has also been a Guest Instructor in several institutes namely, Judicial Service Training Center (1984-2002), Nepal Administrative Staff College, Kathmandu (1990-2002), Revenue Administrative Training Center, Kathmandu (1990-2002), Police Academy (1998-2002) and World Wildlife Federation, New Delhi, India (2001). Dr. Timalsena is a well known expert in the field of law and has presented papers in various national and international level programs. He has also written several reports in the area of law.
2. Prof. Dr. Kamal Das Manandhar
Qualification: Master of Commerce (M.Com.) in 1972 and pursued PhD in Finance, in 2001, from Tribhuwan University.
Work Experience: Dr. Manandhar is a renowned academician in the field of Finance. He has been in the teaching field for the last 38 years. He is an expert in Quantitative Techniques and Statistics. Currently, he is a professor in the faculty of Management of Tribhuwan University. He has published many text books as well as reference books and has participated in several seminars organized by national and international institutions.
3. Dr. Anil Raj Bhattarai
Qualification: Bachelor degree in Law, Masters Degree in Economics from Tribhuwan University and obtained a PhD in Insurance from Pune University.
Work Experience: Dr. Bhattarai has served as the Director of the Insurance Board of Nepal where he worked for 32 years. His immense knowledge has made him an important resource person for National Judicial Academy, Nepal Police Academy and various other academic and non-academic institutions. He has also been associated with various universities of Nepal as an adjunct and associate professor. He has worked as an agricultural insurance specialist in ADS project of Asian Development Bank. He currently presides as an Educational Council Member of Commerce Department, Tribhuvan University.
4. FCA Bijaya Raj Ghimire
Qualificaiton: Chartered Accountant
Work Experience: Worked as an Administrator at Rastriya Beema Sansthan, Chairman of Nepal Housing Development and Finance Company, Board member at Nepal Investment Bank and Gorkhapatra Corporation Nepal. He has also been actively involved with Wool and Carpet Development Board, Nepal Multimodal Transit and Trade Facilitation Project, Nepal Transit & Warehousing Co. Ltd, Trade Promotion Center. Owing to his expertise the Government of Nepal appointed him as a task force member representing Ministry of Commerce, in Nepal Inter model Transport Development Project. Recently, he was appointed as the liquidator for Samjhana Finance Limited.
5. Mr. Radha Krishna Poudyal
Qualificaiton: Masters Degree in Economics in 1976 and also holds a Diploma in Public Administration from Tribhuwan University. He undertook a course in Financial Analysis organized by the South-East Asian Central Banks (SEACAN) Research and Training Centre, Malaysia in 1982. He also participated in a Central Bankers course organized by Swiss National Bank, Switzerland in 1992.
Work Experience: Mr. Poudyal worked in Nepal Rastra Bank for 30 years where he worked in various capacities. He also worked in the Research Department of Nepal Rastra Bank. He was appointed as Banking Member in Debt Recovery Tribunal by the Government of Nepal where he worked for more than five years.
Short Note on Siddhartha Investment Growth Scheme - I
Siddhartha Investment Growth Scheme – I is the first mutual fund scheme launched under the Mutual Fund Act, 2067. Under this, the base size of scheme is targeted to Rs 400 million and maximum size is targeted to Rs 500 million.
As per the forecast report published by the Siddhartha Capital Ltd. (Assests Management Company) for the scheme, the AMC has categories the portfolio into three sectors. One is to invest in the secondary market; the second one is Primary market (IPO) and the third is Bank Deposits.
The AMC has targeted to invest Rs 300 million in the secondary market, Rs 80 million in Primary market and Rs 20 million in Bank Deposit and has targeted to get a return of 15%, 25% and 6% respectively in the initial year. As there is saying “First Come, First Served”, this scheme been first and other companies being on pipeline to bring other mutual fund schemes in the market, the expected return can be much higher in the secondary market than predicted. However, the AMC has forecasted same return in all three sectors throughout the five years which may be different.
Likewise, the AMC has targeted the Net Asset Value (NAV) per unit till the end of five year to Rs 13.73 (capital gain: Rs 10 – Rs 13.73 = Rs 3.73) and overall dividend target of Rs 3.8 i.e. Rs (.80+.90+1+1.10) making the total expected gain of this 5 year scheme to 75% i.e. ((Rs 3.73 + Rs 3.8)/Rs10)). Since, this scheme is closed end; the investor will be refunded NAV per unit worth of amount at the maturity of the scheme. And if they want to liquidate their holdings, it can be done just like any other ordinary scrips as the scheme will be listed in the secondary market of Nepal i.e. Nepal Stock Exchange (Nepse).
Looking at the description published by the AMC regarding the scheme, it has only notified regarding the investment of Rs 400 million. However, it has failed to notify the investor regarding how it would manage the portfolio in case of Minimum and Maximum size of scheme. So, if there was mentioned of percentage figure in the description, it would have been much more helpful for the investor.
