Prabhu Smart Fund Provides Consistent Dividend & Capital Appreciation to the Unit Holders; Sets a Target of 255% Dividend Distribution in 10 Years

From 18 Falgun 2079, the second plan under Prabhu Capital Collective Investment Fund has been made available for issuance and selling. This fund issued 8 crore units valued Rs 80 Crore at a fixed price of Rs 10 per unit.

The fund promoter of this scheme is Prabhu Bank Limited and the scheme manager is Prabhu Capital Limited. This scheme is a closed-ended scheme. This scheme will invest 35 to 90 percent of the amount collected from unit sales in shares, that is, it is an equity-oriented scheme.

Out of a total of 8 crore units issued, the fund promoter Prabhu Bank Limited has secured 1.12 crore units and the fund manager Prabhu Capital Limited has secured 8 Lakh units. The general public can apply for the remaining 6.8 crore units from Falgun 18. Investors who are interested in the units of the fund can apply as soon as possible until 23 Falgun 2079, and if no applications are received for all the units during that period, the sale of units will be open until 3 Chaitra 2079 at the latest.

In Nepal's stock market, shares from numerous industries are listed and exchanged. Because of the high business growth rate, the ability to consistently deliver high returns, the selection of companies with sound financial standing, and the regular investment and sale of shares in the finest companies, the plan is known as the Prabhu Smart Fund.

What kind of plan is Prabhu Smart Fund?

Prabhu Smart Fund is an equity-oriented closed-end mutual fund scheme. The tenure of Prabhu Smart Fund is 10 years. The amount collected from the fund is planned to be balanced and invested in equity and fixed-income instruments that provide fixed returns.

After investing, the fund plans to give a return of about 255 percent in a period of 10 years. For this, market fluctuations will be taken as an opportunity and invested in a balanced manner and try to give the highest returns to the unit holders of this fund. We manage the portfolio by selecting the best stocks in the market. 

What is the purpose of this fund?

First of all, this plan will collect the small savings that are scattered within the plan and convert them into investments. After that, the amount collected from the unit sale of the plan will be efficiently invested by the plan manager in the areas of investment specified by the collective investment fund regulations, giving high returns to the applicants and advancing their activities in a manner that helps in the sustainable development of the securities market as an institutional investor.

What kind of companies does this plan invest in?

This plan will invest in the following areas specified by the collective investment fund regulations issued by the Nepal Securities Board.

• Securities registered with the Board
• Publicly issued securities
• Securities of organized bodies listed on stock exchange
• Bonds, treasury bills and other instruments of money market issued by the Government of Nepal or any institution owned or controlled by the Government or Nepal Rastra Bank as guaranteed or fully secured by the Government of Nepal.
• Deposits in banks and financial institutions
• Currency market instruments
• Other areas etc. as prescribed by the Board.

However, while investing in this way, the fund will manage the portfolio by investing at least 35 to 90 percent in the companies listed in the securities regulation market i.e. Nepal Stock Exchange.

How is the team managing the fund?

Within the investment team of Prabhu Capital, there is a professional team with experts who have worked in the Nepalese capital market as well as in the international capital market and have gained expertise in this field.

Associate Fund Supervisors of the Fund:

Prabhu Mutual Fund has appointed five senior and well-known people with experience in various fields as fund supervisors for the supervision of this scheme. Their brief description is as follows:

1. Shri Yogendra Gauchan: Former Joint Secretary, Government of Nepal. Experience of working at various specific levels of the Government of Nepal. Currently running Supriya Audit Firm.
2. Mr. Sabin Bikram Panta Associate Professor, Kathmandu University. He has been working in the field of teaching and research in the Faculty of Management for 12 years in Kathmandu University.
3. Shri Arjun lal Rajbanshi: Former Chief Manager, Citizens Investment Fund. Long-term experience of working as a chief manager as well as at a specific level in civil investment funds.
4. CA Madan Kumar Niraula: Chartered Accountant, Madan Niraula & Company. 18 years of working experience in the field of auditing. Currently, Madan Niraula & Company is operating.
5. Dr. Narayan Desar: 11 years of experience in teaching in the field of capital market and investment.

What is the strategy to be adopted when choosing a company?

Before investing, the fund classifies the companies from among the companies listed on the Nepal Stock Exchange and available for trading through fundamental and technical analysis among the companies classified in this way, the business growth rate of the company is high, it can provide high returns regularly, the financial condition is good, and the institutional governance is strong. And in certain time intervals, the stocks that can perform better than the market index are selected and they are re-selected by keeping them in the parameters of the grading under the investment policy. While choosing in this way, the best companies will be chosen from among the companies that look excellent mainly on the basis of value and growth.

Why invest in Prabhu Smart Fund?

There are many mutual funds operating in the market now. All those schemes are of their own nature. Their purpose is also different. The nature of Prabhu Smart Fund is also different from others and its purpose and the structure in which it works are also different from other funds. If we look at the international capital market, growth and value-oriented investment strategy is considered as the best strategy. Therefore, investors are giving more importance to such strategic mutual funds for increasing their investment and getting the best returns.

For the selection of companies under Prabhu Smart Fund, there is a plan management team and an analysis and research team within it, and the evaluation of the estimated returns and exit sums of the companies will be regularly researched and analyzed and implemented accordingly, and the investment committee will monitor whether the investment policy arranged by the capital is in accordance. In addition to the arrangement, there is an arrangement of fund supervisors to monitor and inspect whether the fund's minimum price is recognized and the buying and selling is done in accordance with the policy, so investors will be confident about their investment, and even if there is a small fluctuation in the market, there will not be such a big impact on the fund's value. It can be a source of high returns for a long period of time.

According to Capital, Prabhu Smart Fund aims to give an average annual return of 25.50 percent. Prabhu Smart Fund selects and invests in stocks that have a high business growth rate, can provide high returns on a regular basis, have good financial conditions, have strong corporate governance and can perform better than the market index in a certain period of time. Since they are providing equally high returns, the shares of such companies are regularly traded in the market and buying and selling can also be done easily.

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