SEBON approves 'NIBL Sahabhagita Fund'; First open ended mutual fund testing the waters of Nepali Capital Market

Tue, Apr 23, 2019 1:00 PM on Latest, Mutual Fund, Stock Market,

Securities Board of Nepal (SEBON) has approved the 'NIBL Sahabhagita Fund' worth Rs 50 crore. The scheme will be floating 5 crore unit shares each at a par value of Rs 10 per share. The trustee of the Fund is Nepal Investment Bank (NIB), while the fund manager is NIBL Ace Capital.

NIBL Ace had been doing homework for a quite a while with SEBON to introduce open-ended mutual fund in Nepali Mutual Fund Market. The prime features of open-ended funds are:

  1. The scheme size can grow larger as decided by the market with no ceiling
  2. No maturity period till liquidation
  3. Buy/sell at any distribution channel anytime/any day as decided by Fund Manager in respective NAVs with entry/exit fees.

Open-ended fund was introduced once a long time back by NIDC Capital Market but within a short span after the realization that the market was not ready yet, it was converted into a close-ended fund. However, from that time till now, the market literacy has improved, the market capitalization and turnover has increased and participation has also increased. Thus, this will mark the start of new era in Mutual Fund market of Nepal.