NBF-1 NAV inches to 14.57, but remains undervalued despite bullish market

ShareSansar, February 25:

Nabil Balanced Fund-1, a closed-end 5 years mutual fund scheme managed by Nabil Investment Banking Limited, has reported a marginal growth of its net asset value (NAV) as it rose to 14.57  in the month of Magh, up from 14.31 posted in Poush.

The growth is attributed to the overall rally in the market, more than other factors such as better understanding of such schemes and the dividend the scheme is pledging, which is better than the pledged amount.

The scheme, which began with a total fund of Rs 50 crore, invested Rs 66.51crore in listed the shares,  Rs 7.43 crore in bonds, and Rs 9.55 crore in unlisted securities, including fixed deposit, shares and bonds.

The scheme recorded an earning of Rs 34.43 crore in Magh, up from Rs 32.19 crore reported in Poush.

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 12.02 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.