There are currently 10 mutual funds run by 6 merchant banks in Nepal. Out of these 10 mutual funds, one (NIBL Pragati Fund) had recently floated its public issue worth Rs. 60 crore and one (NMB Hybrid Fund-1) has not invested in listed shares as of Kartik, 2073. For other 8 mutual funds, ShareSansar has analyzed the top companies these mutual fund schemes hold the shares of.
With this analysis, investors can know which companies mutual funds favor the most. This will help them in building their own portfolio as well.
Top 10 Companies Overall
Mutual Funds hold the highest number of shares of Siddhartha Investment Growth Scheme-1 (3.5% of all listed shares of SIGS-1). NIBL Sambriddhi Fund -1 holds the highest number of SIGS-1’s shares. Similarly, the second highest is also a mutual fund – Nabil Balanced Fund 1. Both NBF1 and SIGS-1 are maturing next year on 2074.
| S.N. |
Companies |
Total Shares Subsribed by Mutual Funds |
| 1 |
Siddhartha Investment Growth Scheme 1 |
1,754,000 |
| 2 |
Nabil Balanced Fund 1 |
1,360,897 |
| 3 |
Siddhartha Equity Oriented Scheme |
625,000 |
| 4 |
NMB Sulav Fund 1 |
573,149 |
| 5 |
Hydroelectricity Investment and Development Company Ltd. |
393,986 |
| 6 |
Laxmi Value Fund 1 |
272,340 |
| 7 |
Nepal Doorsanchar Co. Ltd. |
257,080 |
| 8 |
Chilime Hydropower Company Ltd. |
190,804 |
| 9 |
Citizens Bank International Ltd. |
172,394 |
| 10 |
Bank of Kathmandu Lumbini Ltd. |
166,287 |
Closed end mutual funds that are going to mature soon in the future can be especially attractive for investors since these are relatively safer than company stocks, and one can get returns quicker. Apart from holding mutual fund schemes, these 8 mutual funds have invested the most in Hydroelectricity Investment and Development Co. Ltd. (HIDCL), Nepal Doorsanchar Co. Ltd. (NTC), Chilime Hydropower, Citizens Bank and Bank of Kathmandu Lumbini.
Top 5 Commercial Banks
Mutual fund schemes have invested in a total of 172,394 shares of Citizens Bank International the most. Bank of Kathmandu Lumbini, Sanima Bank, NIC Asia Bank and Nepal Investment Bank (Promoter) shares are the next most subscribed by mutual funds overall.
Mutual funds hold the least shares of Grand Bank, Prabhu Bank and Everest Bank (Preference).
Top 5 Development Banks
Development banks are popular among investors as development banks have been able to provide similar returns like commercial banks without requiring high initial investment amount. These 8 mutual funds have invested in the shares of 34 listed development banks.
Mutual funds hold the most shares of Garima Bikas Bank, Shine Resunga, Kailash Bikas Bank, Sahayogi Bikas Bank and Muktinath Bikas Bank.
Mutual funds hold the least shares of Tinau Bikas Bank, Ace Development Bank and Araniko Development Bank.
Top 5 Finance Companies
Mutual funds have invested in only 6 finance companies as of Kartik, 2073. At 47.75% of overall shares of finance companies, Bhaktapur Finance Company’s shares are the most subscribed. Nabil Balanced Fund 1 and NMB Sulabh Fund 1 have bought 13,988 and 11,373 shares of the finance company. Citizens Investment Trust, Goodwill Finance, ICFC Finance and Sagarmatha Finance are the next most subscribed.
Top 5 Microfinance Companies
Mutual funds hold the shares of 19 microfinance companies as of Kartik, 2073. Shares of Rural Microfinance Development Center are the most subscribed at 18.01% of overall microfinance shares.
Top 5 Life Insurance Companies
Mutual funds have invested in 7 listed life insurance companies. At 25%, National Life Insurance Company’s shares are the most subscribed. Mutual funds hold 75,326 shares of NLICL.
Top 5 Non-life Insurance Companies
NLG Insurance Company is the most favored non-life insurance company among mutual funds. Mutual funds hold a total of 87,731 shares of NLG Insurance. Sagarmatha Insurance and Shikhar Insurance are the next most favored among other non-life insurance companies.
Top 5 Hydropower Companies
At almost 50% of total hydropower shares subscribed by mutual funds, HIDCL’s shares are the most favored. Mutual funds have bought 393,986 shares of the company. Chilime, Butwal Power Company, Arun Valley and Sanima Mai are the next most bought shares.
Hotels
Mutual funds have invested in the most shares of Soaltee Hotels. Overall 106,221 shares of Soaltee Hotels have been subscribed by the mutual funds.
Top 5 Mutual Funds
Mutual funds hold the most shares of SIGS-1. SIGS-1 accounts for almost 38% of the overall mutual fund holdings. NBF-1 is the second most subscribed mutual fund at 29.46%.
Others
Mutual funds also hold 257,080 shares of NTC and 1,630 shares of Uniliver Nepal Limited.
