Nabil Balanced Fund-1 NAV inches to 15.28

ShareSansar, May 23:

Nabil Balanced Fund-1, a closed-end 5 years mutual fund scheme managed by Nabil Investment Banking Limited, has reported a growth of its net asset value (NAV) as it rose to 15.28  in the month of Baisakh, up from 15.10 posted in Chaitra.

The growth is attributed to the core business as the mutual fund scheme recorded an earning of Rs 40.68 crore in Baisakh, up from Rs 38.89 crore reported in the previous month.

The scheme, which began with a total fund of Rs 50 crore, invested Rs 77.99crore in listed the shares,  Rs 11.44 crore in bonds, and Rs 21.31 crore in unlisted securities, including fixed deposit, shares and bonds.

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

It closed at Rs 11.95 at NEPSE yesterday.

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.

NBF-1 has landed in another trouble with the SEBON blocking the dividend it had pledged for the last year, citing technical reasons.