Last day to apply for NMB's mutual fund; 2 times oversubscription expected

ShareSansar, Sept 21:

Today is the last day for the investors to apply for the NMB Sulav Investment Fund-1.

The new mutual fund which was opened for the public for subscription from last Friday is going to close today.

The fund has drawn a huge response from the public. According to the officials of the NMB Capital, the mutual fund scheme has drawn more than Rs 60 crore within three days only. This means that the fund is already fully subscribed.

NMB Sulav Investment Fund-I is promoted by the NMB Bank and operated by Bank’s subsidiary NMB Capital Limited.

NMB Sulav Investment Fund – I is a closed end fund with an initial corpus of Rs 60 crore, and may exceed up to Rs 75 crore. According to the NMB Capital’s notice, an investor can apply up to 100 units of the shares while 6,000,000 units is the maximum limit.

The mutual fund is being floated at the face value of Rs 10. The investors have to pay Rs 10 per unit while submitting the form.  NMB Sulav Investment Fund has received [ICRANP] AMC Quality 3 (AMCs), which is a very good credit rating.

The officials also told ShareSansar that the mutual fund was not being only drawing the individual investors, but institutional investors are also applying for the NMB Sulav Investment Fund-I.

“Going by the trend of responses that we received from the individual as well as institutional investors across the country, we expect the scheme to be oversubscribed by more than 2 times,” Chief Operating Officer of NMB Capital Limited Kamal Nepal told ShareSansar.


Lately, mutual funds are also luring investors like the IPO of any companies.

The regulators and stock analysts also emphasized on the need of the entry of the mutual fund schemes, which they believe, helps on stabilizing the volatile secondary market.
 
With NMB Sulav Investment Fund, there are now four mutual funds in the market, including two operated Siddharth Capital Limited (SIG-1 and SEOS), and one managed by Nabil Investment Banking Limited (NBF-1).

Those who want to apply for the NMB Sulav Investment Fund-I can collect and submit the form from 29 different collection counters of the NMB Bank across the country and NMB Capital office. Investors outside the valley where there are no counters have an option to apply through the post offices by enclosing the A/c payee draft issued on the name of NMB Capital Ltd.

Out of total 60,000,000 units, NMB Capital has allocated 9,000,000 units or 14 percent of the total sold units for the NMB Bank while 1 percent has been allocated for the NMB Capital. Remaining 51,000,000 is for the public.