More than 6 Arba worth of Investment waiting to flow into the market through Mutual Fund Schemes; Six new schemes under preliminary review from SEBON

  • -ShareSansar
Mon, Oct 29, 2018 1:36 PM on Corporate, Exclusive, Mutual Fund,

~Rishab Agrawal

A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities. Mutual Funds are managed by professional money managers, who allocate the fund’s investment and attempt to produce capital gain for the fund’s investors. Mutual Fund managers have a predetermined module of investment which helps the investors determine the risk to be assumed for a certain percentage of return.

In Nepal, there are currently 13 Mutual Fund schemes being managed by various capital markets. However, there are more upcoming schemes that are currently under preliminary review from Securities Exchange Board of Nepal (SEBON). These schemes are:

  1. Global IME Balance Fund- 1

This scheme, with an expected fund size of Rs.1.20 Arba raised from issue of 12 Crore units, is under the management of Global IME Capital Limited. The date of application of this scheme was on 7th Jestha, 2074. Even after more than 17 months of the application, the scheme is still under preliminary review.

Global IME Capital also manages ‘Global IME Samunnat Scheme- 1’ with fund size of Rs.1 Arba, maturing on 24th March, 2023. The NAV of this scheme has been below the par value for most of the period.

  1. Citizens Mutual Fund- II

Under the management of CBIL Capital Limited, this equity oriented scheme has an expected fund size of Rs.1 Arba from issue of 1 Crore units. The date of application of this scheme was 16th Jestha, 2075. On asking the CEO of CBIL capital, Mr. Samir Prasad Dahal, regarding the delay of the issue, he said “It has already been five months and there is no reply from SEBON. CBIL capital had completed all the formalities for the application but there is no progress from SEBON’s side.”

CBIL capital also manages another mutual fund scheme called ‘Citizen Mutual Fund- I’ whose fund size is Rs.82 Crore with a maturity period of seven years.

  1. NMB- 50

The expected fund size of this equity oriented scheme is Rs.1.2 Arba to be raised from issue of 12 Crore units. This scheme is under the management of NMB Capital Limited who applied for this scheme on 32nd Asadh, 2075. The spokesperson from NMB Capital said that as per SEBON the issue is still under review, it cannot be ascertained with complete accuracy what is causing the delay and by when will it be resolved.

NMB Capital already manages two mutual fund schemes, namely ‘NMB Hybrid Fund- 1’ and ‘NMB Sulav Investment Fund- 1’ with fund size of Rs.1 Arba and Rs.75 Crore respectively.

  1. NIC Asia Balance Fund

With an expected fund size of Rs.1.25 Arba, this scheme is under the management of NIC Asia Capital. The application date of this scheme was on 16th Ashwin, 2075. As per the officials from NIC Asia Capital, the application process of the balance fund has completed and it is currently under review from SEBON, any other deduction regarding the scheme cannot be made with complete accuracy.

NIC Asia Capital also has another scheme, ‘NIC Asia Growth Fund’ under its management with fund size of Rs.83.52 Crore maturing on 12th March, 2025.

  1. Nabil Balance Fund- II

The fund size of the upcoming mutual fund scheme is Rs.1.2 Arba under the management of Nabil Investment Banking Limited. The date of application of this scheme was on 29th Ashwin, 2075.

Nabil Investment Banking Limited also manages an equity oriented mutual fund scheme called ‘Nabil Equity Fund’ with a fund size of Rs.1.25 Arba with maturity period of seven years.

  1. NIBL Sahabhagita Fund

Under the management of NIBL Ace Capital Limited, this open-ended scheme has a fund size of Rs.50 Crore. This will be the first open-ended scheme in Nepal. The date of application of this fund was on 27th Asadh, 2074 after which SEBON had replied with clarification on 22nd Magh, 2074. Further, the comment was sent on 25th Shrawan, 2075. Since then there has been no progress regarding the issue of the scheme.

Two schemes, namely ‘NIBL Pragati Fund’ and ‘NIBL Samriddhi Fund 1’ are currently under the management of the investment bank. NIBLPF has a fund size of Rs.75 Crore maturing on 11th January, 2024 while NIBSF1 has a fund size of Rs.1 Arba maturing on 7th January, 2022.

The above mentioned schemes are currently under review from SEBON and have not received any definite answer from the board regarding the launch of the schemes. The market would see investment flow of more than Rs.6 Arba post the launch of the new mutual fund schemes. Although, recently issued schemes (Citizen Mutual Fund-1 and NIC Asia Growth Fund) went undersubscribed, the launch of new schemes would add to available options for investors. It would also encourage individuals who want to invest but do not have the time or the knowledge to become a full time investor.

Currently there are 13 mutual fund schemes listed in the secondary market. These schemes have various fund size and maturity period. The status of the schemes is as follows:

S. N.

Symbol

Name

Fund Size (Rs.)

Maturity Date

Maturity Period

Today's NAV (Rs.)

LTP (Rs.)

As of

1

GIMES1

Global IME Samunnat Scheme 1

1,000,000,000

24-Mar-23

7 Years

8.68

9.06

24-Oct-18

2

LEMF

Laxmi Equity Fund

1,250,000,000

12-Jun-24

7 Years

8.73

8.56

23-Oct-18

3

LVF1

Laxmi Value Fund-1

500,000,000

25-Mar-20

5 Years

10.86

10.15

25-Oct-18

4

NIBLPF

NIBL Pragati Fund

750,000,000

11-Jan-24

7 Years

7.79

9.21

25-Oct-18

5

NIBSF1

NIBL Samriddhi Fund 1

1,000,000,000

7-Jan-22

7 Years

10.23

10

25-Oct-18

6

NMBHF1

NMB Hybrid Fund- 1

1,000,000,000

26-Oct-23

7 Years

10.48

9.6

24-Oct-18

7

NMBSF1

NMB Sulav Investment Fund-1

750,000,000

20-Oct-19

5 Years

13.38

13.27

25-Oct-18

8

NEF

Nabil Equity Fund

1,250,000,000

6-Nov-23

7 Years

8.61

9.18

25-Oct-18

9

SAEF

Sanima Equity Fund

1,300,000,000

26-Dec-24

7 Years

10.33

9.4

25-Oct-18

10

SEF

Siddhartha Equity Fund

1,500,000,000

8-Nov-27

10 Years

10.41

9.42

25-Oct-18

11

SEOS

Siddhartha Equity Oriented Scheme

1,000,000,000

22-Jul-19

5 Years

10.44

11

23-Oct-18

12

CMF1

Citizen Mutual Fund-1

820,000,000

3-Mar-25

7 Years

11.5

9.52

25-Oct-18

13

NICGF

NIC Asia Growth Fund

835,200,000

12-Mar-25

7 Years

10.29

9.45

25-Oct-18