Nabil Balanced Fund-1 NAV inches to 18.71, but priced at Rs 14.9

ShareSansar, August 27:

Nabil Balanced Fund-1, a closed-end 5 years mutual fund scheme managed by Nabil Investment Banking Limited, has reported further growth as its net asset value (NAV) rose to 18.71 in the month of Shrawan, up from 18.57 posted in Ashad.

The growth is attributed to the core business as the mutual fund scheme recorded an earning of Rs 1.46 arba in Shrawan, up from Rs 66.03 crore reported in the previous month.

The scheme, which began with a total fund of Rs 50 crore, invested Rs 1.04 arba in the listed shares, Rs 11.44 crore in bonds, and Rs 3.09 crore in unlisted securities, and Rs7.5 crore fixed deposit.

However, the scheme is undervalued in the market as it been hovering around Rs 15 per unit, which is below NAV.

It closed at Rs 14.9 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 a trouble with the SEBON blocking the dividend it had pledged for the last year, citing technical reasons.

Stakeholders are not happy with the delay on the part of the regulator to address this problem as it hurts the growth of mutual fund in the country.