Nabil Balanced Fund-1 pledges 5.5% cash dividend; book closure on May 13

ShareSansar, May 6:

Nabil Investment Banking Limited, one of the two mutual fund operators in the country, has pledged 5.5 percent cash dividend to the unit holders from the net profit it posted in the last year 2070.

Nabil Investment Banking Limited has also announced book closure date for the dividend on May 14. Only those who hold the units of NBF-1 till 13th May will be entitled to the dividend.

The closed-end 5 years mutual fund scheme launched by Nabil Investment Banking Limited only last year, has been steadily growing.  Its Net Asset Value has risen to 15.10  by the end of the first year.

The scheme, which began with a total fund of Rs 50 crore, invested Rs 74.02 crore in the listed shares and 11.44 crore in bonds, besides 5.78 crore in unlisted shares and 7.50 crore in fixed deposit in the last month of the last year.

The mutual fund scheme has, however, always undervalued in the market as it been hovering around Rs 12 per unit, which is below NAV.

It closed at Rs 11.85 at NEPSE yesterday.

The 5.5 percent dividend in less than a year amounts to 4.6 percent yield (at the current rate), which is quite impresive.
 
However, lack of awareness among the investors among the benefits of mutual funds is one of the major reasons behind the undervalue 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.

In January, SIG1 had offered 4.5 percent cash dividend to its unit holders.