Look at top investment preferences for mutual fund schemes in the month of Bhadra

There are currently 28 mutual funds in the country. Mega Mutual Fund -1 was listed recently. Click here for a detailed list of Mutual fund 

Mutual Funds have an investment in listed/unlisted companies of Rs. 21.99 Arba in Bhadra compared to Rs. 24.87 Arba in Shrawan. Similarly, mutual funds have decreased the bank balance to Rs. 9.62 Arba in Bhadra from Rs. 11.03 Arba in Shrawan. Mutual Funds have invested in debentures and bonds amounting to Rs. 2.17 Arba. Similarly, the funds also have invested 1.71% in primary shares which amount to Rs. 64.55 crores.

The top investments by mutual funds irrespective of sectors in the month of Bhadra are as follows:

The topmost bought stocks in Bhadra by the overall mutual fund industry are as follows:

The topmost sold stocks in Bhadra by the overall mutual fund industry are as follows:

Sector-wise Breakdown

Investment in the commercial banking industry accounts for the highest sector-wise investment of Rs. 7.89 Arba, making up 35.88% of total investment. Likewise, they have an investment of Rs. 3.95 Arba in shares of the Microfinance sector, accounting for 17.96% of total investment. The Life Insurance sector stands at the third-highest investment priority for mutual funds with an investment worth Rs. 2.42 Arba, contributing 11.04% of total investments.

Commercial Banks:

Among the commercial banks, Nabil Bank Limited (NABIL) is seen as the top priority for investment by mutual funds. It accounts for an investment worth Rs. 92.52 crores. NIC Asia Bank Limited (NICA) stands at the second position with an investment of Rs. 87.66 crores. Nepal Bank Limited (NBL) stands at third position with an investment of Rs. 69.53 crores.

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. 40.37 crores. Garima Bikas Bank Limited (GBBL) is seen in the second position with an investment worth Rs. 34.76 crores. Kamana Sewa Bikas Bank Limited (KSBBL) has an investment of Rs. 14.57 crores at the third position.

Finance:

As for the finance companies, the top three investments were Manjushree Finance Limited (MFIL) and ICFC Finance company Limited (ICFC). Mutual funds invested an amount of Rs. 2.56 Crores in MFIL, Rs. 1.33 crores in ICFC.

Hotels and Tourism:

Among the four listed hotels in NEPSE, mutual funds have given higher priority to Chandragiri Hills Limited (CGH) with an investment of Rs. 3.72 crores.

Hydropower Companies:

The inclination of investment in hydropower companies for mutual funds was in Ngadi Group Power Company Limited (NGPL) with an investment of Rs. 18.56 crores, Chilime Hydropower Company Limited (CHCL) with an investment of Rs. 11.48 crores and Arun Valley Hydropower Development Company Limited (AHPC) with an investment of Rs. 7.30 crores.

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 Corporation Limited (LICN) are the investment companies of top priorities for mutual funds. Mutual Fund schemes have around Rs. 67.75 crores in investments in NLICL, Rs. 42.36 crores investments in NLIC, and Rs. 37.26 crores in LICN.

Manufacturing and Products:

Mutual Funds have invested Rs. 45.14 crores in Himalayan Distillery Limited (HDL), Rs. 41.77 crores in Shivam Cements Limited (SHIVM) and Rs. 19.83 crore in Shivam Cements Limited (SHIVM) as of Bhadra, 2078.

Microfinance Companies:

Among the listed microfinance companies, Chhimek Laghubitta Bittiya Sanstha Limited (CBBL), Sana Kisan Laghubitta Bittiya Sanstha Limited (SKBBL), and Nirdhan Utthan Laghubitta Bittiya Sanstha Limited (NUBL) were the top three investment priorities for mutual funds. Mutual Funds invested Rs. 78.03 crores in CBBL, Rs. 43.12 crores in SKBBL, and Rs. 37.36 crores in NUBL.

Mutual Fund:

The mutual fund schemes also invest in other mutual funds.

RBB Mutual Fund-1 (RMF1) falls under the highest investment value mutual fund. It has an investment of Rs. 6.98 crores. Prabhu Select Fund (PSF) has the second-highest equity fund of the value of Rs. 5.98 crores. Finally, NIC Asia Select-30 (NICSF) stood third-highest investment of Rs. 5.92 crores.

Non-Life Insurance companies:

Among the non-life insurance companies in Nepal, Neco Insurance Company Limited (NIL), Shikhar Insurance Company Limited (SICL), and Premier Insurance Company Limited (PIC) are the investment companies of top priorities for mutual funds. Mutual Fund schemes have around Rs. 47.37 crores investments in NIL, Rs. 38.53 crores in SICL, and Rs. 32.42 crores in PIC.

Preference shares and Promoter shares:

Similarly, the preference and promoter share as per the choice of mutual funds are:

Others:

As for the other sector, mutual funds have invested Rs. 34.17 crores in Nepal Reinsurance Company Limited (NRIC), Rs. 22.64 crores in Nepal Doorsanchar Company Limited (NTC).

Investment:

As for the Investment sector, Nepal Infrastructure Bank Limited (NIFRA) has the highest investment worth Rs. 27.01 crores. Similarly, Citizen Investment Trust (CIT) stands in the second position with an investment of Rs. 23.80 crores.

Merged Companies:

Mutual Fund has also invested in previously merged companies. 

Change in NAV:

NAV stands for Net Asset Value at which represents a fund’s per unit market value. Investors use this Value for the transaction of a particular mutual fund in the market. Since the NAV is calculated by subtracting all the liabilities from the total value of all the assets in a portfolio, the value changes in accordance with the change in their asset and liabilities.

In the month of Bhadra, 2078, Global IME Samunnat Scheme 1 (GIMES1) has a NAV of Rs. 22.90; declined by 11.99%. GIMES1 is followed by Sanima Equity Fund (SAEF) with a NAV of 21.10 which declined by 7.17%.

With the data published by all the mutual funds, it is clear that the NAV has declined almost all of the funds. This is a result of dividends distributed by the funds previously.

Analyzing the pattern of investment of mutual fund schemes can help investors design their own investment portfolios, customize them 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 fund's schemes and safeguard themselves against some risk.

All the data are generated from SSpro Software. To know more about the software, click on the link below

SSpro

Disclaimer: Any kind of information that is provided in the article should not be used as sole advice or recommendation by investors in order to design their investment portfolio. So, before taking steps for any kind of information, the investors are required to base their judgment on their financial analysis, appropriateness of the information, and seek independent financial advice. The information of the company has been taken from the authorized sources like the 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.