Undervalued Nabil Balanced Fund-1 NAV nudges to 15.10, SIG-1, too, rises to 16.28

ShareSansar, April 27:

Nabil Balanced Fund-1, a closed-end 5 years mutual fund scheme managed by Nabil Investment Banking Limited, has reported a rise in its net asset value (NAV) as it rose to  15.10  in the month of Chaitra, up from 14.40 posted in Falgun.

This is a welcome news for those who have invested in the mutual fund since its NAV has marginally fallen in Falgun due to overall bearish trend in the market over the month, more than other factors such as poor understanding of such schemes and the dividend the scheme is pledging.

The scheme, which began with a total fund of Rs 50 crore, invested Rs 74.02 crore in the listed shares and 11.44 crore in bonds, besides 5.78 crore in unlisted shares and 7.50 crore in fixed deposit.

The scheme is still undervalued in the market as it been hovering around Rs 12 per unit, which is below NAV.

It closed at Rs 11.47 at NEPSE on Thursday, the last trading day.

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.

SIG-1’s NAV has risen to 16.28 in Chaitra, up from 15.79 in the previous month.

SIG-1, a closed-end 5 years mutual fund scheme managed by Siddhartha Capital Limited, invested Rs 73.54 in listed scrip, Rs 3.49 in the Initial Public Offerings and 2.29 crore in other securities.