Mutual funds chose to buy commercial banks’ stocks in the month of Kartik! A discussion on Kartik’s portfolio of mutual fund industry

Thu, Dec 6, 2018 3:03 PM on Exclusive, Financial Analysis, Latest, Stock Market,

The thirteen mutual fund schemes run by 9 mutual fund companies have been facing a tough time with the ongoing bearish market trend. The objective of mutual fund schemes is questionable as the secondary market is continuously declining. However, mutual funds are compromised with professionals and experts thus; many investors rely upon these mutual funds so that individual investors can create their own portfolio.

The top investment by mutual funds irrespective of sectors in the month of Kartik are as follows:

In the month of Kartik, mutual fund industry bought majority of stocks from commercial banks stocks. The top most bought stocks in Kartik by the overall mutual fund industry are as follows:

The top most sold stocks in Kartik by the overall mutual fund industry are as follows:

Sector-wise Breakdown

As of the end of Kartik 2075, the 13 mutual funds have a total investment value of Rs 6.06 arba in equities compared to Rs 6.45 arba in Aswin, 2075. Investment in commercial banking industry accounts for the highest sector-wise investment of Rs 2.34 arba. Likewise, they have investment of Rs 86.04 crore in shares of microfinance companies, accounting for the second-highest sector-wise value. Life insurance companies sector stands at the third highest investment priority for mutual funds with an investment worth Rs 76.87 crores.

 

Commercial banks:

Among the commercial banks, Nepal Bank Limited (NBL) is seen as the top priority for investment by mutual funds. It accounts an investment worth Rs 44.29 crores. NMB Bank Limited (NMB) stands at the second position with investment of Rs 31.09 crores. Everest Bank Limited (EBL) stands with the investment of Rs 16.42 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 9.50 crores. Garima Bikas Bank Limited (GBBL) is seen in the second position with an investment worth Rs 4.00 crores. Kailash Bikas Bank Limited (KBBL) has an investment of Rs 3.83 crores at the third position.

Microfinance companies:

Among the listed microfinance companies, Sana Kisan Bikas Bank Ltd. (SKBBL), Chhimek Laghubitta Bikas Bank Ltd. (CBBL) and Deprosc Development Bank Ltd. (DDBL) were the top three investment priorities for mutual funds. Mutual funds invested Rs 15.02 crores in Sana Kisan, Rs 13.38 crores in Chhimek Laghubitta Bikas Bank Limited (CBBL) and Rs 10.56 crores in Deprosc Development (DDBL).

Life Insurance companies:

Among the life insurance companies in Nepal, Nepal Life Insurance Company Limited (NLIC), Life Insurance Company Limited (LICN) and National Life Insurance Company Limited (NLICL) are the investment companies of top priorities for mutual funds. Mutual funds schemes have around Rs 27.92 crore investments in NLIC, Rs 17.00 crore investments in LICN and Rs 15.76 crores investment in NLICL.

Non-Life Insurance companies:

Among the non-life insurance companies in Nepal, Sagarmatha Insurance Company Limited (SIC), Shikhar Insurance Company Limited (SICL) and NLG Insurance Company Limited (NLG) are the investment companies of top priorities for mutual funds. Mutual funds schemes have around Rs 15.25 crore investments in SIC, Rs 11.90 crore investments in SICL and Rs 11.32 crores investment in NLG.

Hydropower companies:

The inclination of investment in hydropower companies for mutual funds was in Chilime Hydropower Company (CHCL) with an investment of Rs 13.40 crore, Butwal Power Company Limited (BPCL) with an investment of Rs 11.71 crore and Sanima Mai Hydropower Company (SHPC) with an investment of Rs 3.74 crore.

Finance:

As for finance companies, the top three investments were Shrijana Finance (SFFIL), Manjushree Finance Limited (MFIL), and Goodwill Finance (GFCL). Mutual funds invested an amount of Rs 34.26 lakhs in Shrijana Finance, Rs 28.51 lakhs in Manjushree Finance and Rs 25.77 lakhs in Goodwill Finance Limited.

Hotels:

Among the three listed hotels in NEPSE, mutual funds have given higher priority to Oriental Hotels Limited (OHL) with an investment of Rs 2.61 crores.

Mutual fund:

The mutual fund schemes also invest in other mutual funds. The mutual funds have preferred Siddhartha Equity Oriented Scheme (SEOS) as the best scheme for investment. It has an investment that accounts to Rs 2.08 crores. NMB Sulav Investment Fund-1 (NMBSF1) falls under the second highest investment value mutual fund. It has an investment of Rs 1.97 crores. Finally Citizens Mutual Funds (CMF1) has a third highest investment of Rs 1.04 crores. Investors looking for investing in mutual funds can also consider these ranking.

Manufacturing & Production:

Mutual funds have invested Rs 1.17 lakhs in Unilever Nepal Limited (UNL) as of Kartik, 2075.

Others:

As for the others sector, mutual funds have invested Rs 24.86 crores in Nepal Doorsanchar Company Limited (NTC), Rs 18.37 crores investment in Citizen Investment Trust (CIT),  and Rs 2.17 crores in Jalabidyut Lagani Tatha Bikas (HIDCL).

 Preference shares and Promoter shares:

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

 

Hence, the overall analysis draws the top companies preferred by mutual funds for investment. This article might be helpful to the aspiring investors in the secondary market. What are your views on the mutual funds? Do you think the top investment decisions made by mutual funds are backed up with rationality? Please write to us in the comment section below.

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