Siddhartha’s equity-oriented mutual fund from June 24

ShareSansar, June 17:

As reported by ShareSansar last week, a new close-ended equity-oriented scheme worth Rs 80 crore of Siddhartha Capital Limited will hit the market in June itself.

Issuing an offer letter for its new mutual fund scheme, the bank has stated that the five-year mutual fund has been named Siddhartha Equity Oriented Scheme (SEOS) will be floated at a value of Rs 10 per unit from June 24.

Out of the total 8 crore units, 1.2 crore units have been set aside for Siddhartha Capital Limited, the merchant banking wing of the bank.

Interested investors must buy at least 100 units and at the most 80 lakh unit before the issue closes on June 29, or by July 9 at the latest.

Siddhartha Capital’s Chief Executive Officer Dhurba Timilsina further informed that SEOS will target 70 percent equity market, 25 percent bond market and only 5 percent liquidity management.

Asked why did they opt for an equity oriented scheme this time unlike their first scheme, Siddhartha Investment Growth Scheme-I or SIGS-I, he said that equity -oriented scheme was brought initially since the capital market is no longer undervalued and equity market is also growing.

SEOS has received [ICRANP] AMC Quality 3 (AMCs) rating, which is very good while the issue manager itself has received ICRANP BBB, which is not bad at all.

NIBL’s Sambriddhi Fund-I expected soon

NIBL Capital is also seeking approval to float a closed-end seven year scheme that comes to the tune of Rs 80 crore at the earliest.

NIBL Capital is also seeking approval to float a closed-end seven year scheme that comes to the tune of Rs 80 crore at the earliest.

"We will be launching our first Mutual Fund called Sambriddhi Fund-I close end, equity oriented fund of the size of Rs 80 crores very soon," a highly placed official with NIBL Capital said today. "We recently received Fund Management Quality Rating of AMC Quality 3 from ICRA Nepal, and are now only awaiting for the final approval from SEBON, which we are expecting to receive very soon."

So far a mutual fund each launched by the merchant bankers of Nabil and Siddhartha Banks are the only two such schemes in the market.

With the upcoming budget expected to announce some measures to further promote the mutual funds, the market has also been abuzz about a five-year mutual fund to be launched by NMB Capital Limited called NMB Sulabh Investment Fund worth Rs 60 crore.

The merchant banking arms of Laxmi Bank and Global IME Bank and NIBL had also sought SEBON’s approval for their schemes way back in early 2013.

Laxmi Capital is vying to launch Laxmi Value Fund, which is again a five-year closed-end balanced fund worth Rs 40 crore. Global IME is also planning a scheme identical to Nabil Balanced Fund-1.

In fact many more mutual funds were expected in the market after the government decided to treat mutual funds as a non-taxable entity.

And the key stakeholders in the capital market, especially the share market, were upbeat about mutual funds as they give much-needed depth and maturity to the market.
Such schemes are one of the safest investment tools for a novice investor, and almost as good as a pension plan for all.

When nobody seems to have an issue with more mutual funds in the market, why is it taking so long for these schemes to materialize?

Though the reasons vary for different companies.

Merchant bankers in general cite new regulations enforced by SEBON to seek credit rating for mutual fund schemes for the delay.