Nabil Balanced Fund-1 NAV falls marginally to 14.40

ShareSansar, March 23:

Nabil Balanced Fund-1, a closed-end 5 years mutual fund scheme managed by Nabil Investment Banking Limited, has reported a marginal fall in its net asset value (NAV) as it dropped to 14.40  in the month of Falgun, down from 14.57 posted in Magh.

The fall was led by overall bearish trend in the market over the month, more than other factors such as poor understanding of such schemes and the dividend the scheme is pledging.

The scheme, which began with a total fund of Rs 50 crore, invested Rs 64.98 crore in listed the shares, 11.44 crore in bonds, besides 10.18 crore in unlisted shares and 7.50 crore in fixed deposit.

The scheme recorded an earning of Rs 33.38 crore in Falgun, down from Rs 34.43 crore reported in Magh.

The scheme is still undervalued in the market as it been hovering around Rs 12 per unit, which is below NAV.

It closed at Rs 11.47 at NEPSE on Thursday, the last trading day.

Lack of awareness among the investors among the benefits of mutual funds is one of the major reasons behind the underestimation of such schemes, according to analysts.

Among the two mutual funds listed in the share market, Siddhartha Investment Growth Scheme 1 (SIG1) is also trading below par due to similar reasons.