Mutual Fund vs High Rollers of NEPSE: Who is investing more?
Wed, Feb 10, 2016 3:35 AM on Latest, Exclusive, Mutual Fund, Mutual Fund, Featured,
Mutual Fund is a program professionally managed for investing in diverse portfolio. The amount in mutual fund is collected from the investors .
In context of Nepal, the mutual funds are backed by commercial bank and managed by the merchant banker. Initial Public Offering (IPO) of mutual fund is offered at Rs 10/unit unlike Rs 100/unit of other companies.
For example, Global IME Sammunat Yojana-1 is coming out with public offering worth Rs 80 crore from Falgun 02, 2072. This mutual fund is backed by Global IME Bank Ltd. (commercial bank) and managed by the Global IME Capital (Merchant Banker). The general investors will be funding this mutual fund through IPO. Then, the mutual fund will use collected amount from all investors to run day to day business, and invest in various instruments available in the market. The net profit will be distributed to the investors or invested in the market again. At the end of the mutual fund, the net profit is distributed to the investors in proportion.
The following table lists the state of mutual funds, as of Poush 2072, currently operational in Nepal:
ShareSansar has compiled the list of investor/group who have significant investment in secondary market of Nepal. Following table depicts the estimated investment by such group/individual in the secondary market o f Nepal:
As per our estimation, above figures do not represent the amount invested as promoters before the Initial Public Offering (IPO) of any company.
On average, the current value of investment of all six mutual funds in shares (listed and Non-listed) stands at Rs 83.45 crore which is well below the amount invested by the aforementioned individual high rollers of our secondary market.
ShareSansar has compiled the list of investor/group who have significant investment in secondary market of Nepal. Following table depicts the estimated investment by such group/individual in the secondary market o f Nepal:
As per our estimation, above figures do not represent the amount invested as promoters before the Initial Public Offering (IPO) of any company.
On average, the current value of investment of all six mutual funds in shares (listed and Non-listed) stands at Rs 83.45 crore which is well below the amount invested by the aforementioned individual high rollers of our secondary market.
