Nabil mutual fund to be launched in two weeks

KATHMANDU, MAR 09:

The Nepali capital market will receive another mutual fund within the next couple of weeks.

Nabil Investment — a merchant banking subsidiary of Nabil Bank — will launch the new fund offer for its mutual fund scheme — Nabil Balance Fund I — within the next couple of weeks.

The Securities Board of Nepal (Sebon) has already given a final go-ahead to the scheme worth Rs 600 million.

“We will publish the offer letter by the coming week and the offer will be launched within the next two weeks,” said CEO of Nabil Investment Pravin Raman Parajuli. Nabil Investment is the fund manager for Nabil Mutual Fund.

Nabil Investment has been licensed by Sebon to work as a fund manager and depository for Nabil Mutual Fund. Siddhartha Bank will work as

the sponsor of the second mutual fund that will come into operation after the Mutual Fund Regulation 2067 came into existence. Earlier in November, Siddhartha Capital had launched its new fund offer — Siddhartha Growth Scheme I — which was well received by investors.

“The mutual fund will invest in both equity and debt instruments, that is why it is called a balance fund,” informed Parajuli. The mutual fund is a closed ended scheme with a tenure of five years and its size can increase to Rs 750 million.

One unit of the scheme will be primarily priced at Rs 10, and according to the Mutual Fund Guidelines 2069, a single investor has to buy a minimum of 100 units. The units will later be listed at the stock exchange for secondary trading. Mutual funds are considered one of the best investment instruments for a layperson or debutant investor. Investors can invest in professionally managed portfolios with a small capital, thus it is suitable for rookies and risk aversive investors.

Siddhartha Growth Scheme I was successfully subscribed and listed at the stock exchange. The mutual fund units are being traded at Rs 13.03 per unit of late. Since the beginning of its trading on January 21, more than 1.5 million units have been traded at Nepse.

The tenure of NIDC Capital Markets Ltd (NCML)’s 10-year mutual fund was up in November 2012. It had 10 million units listed and its market capitalisation stood at Rs 272 million at its last traded price. NCML, at present, is auctioning off shares in order to liquidate the fund.

NMB Capital — subsidiary of NMB Bank — is also planning to launch a mutual fund scheme after it obtained a licence to operate a mutual fund in September 2012.

Source: THT