What companies do Mutual Funds invest in Secondary Market ?
Wed, Feb 3, 2016 11:49 AM on Latest, Exclusive, Mutual Fund, Mutual Fund, Featured,
Mutual funds have various level of security features embedded to protect their clientele from the possible loss. They are expected to have robust review team full of experts to analyze companies before making an investment decisions. One can follow the footsteps of mutual funds and make good money with comparatively low risk from the secondary market.
ShareSansar has analyzed the monthly report of all six mutual funds operating in Nepal.The analysis of sector wise investment by mutual funds in listed companies in secondary market is as follows:
Mutual funds have invested the largest portion of their portfolio in the commercial bank sector. 48% of the total investments by mutual funds have been in this sector. The second largest portion of their portfolio is occupied by the Insurance Sector which occupies 21% of their portfolio. Inside insurance, Life Insurance occupies almost 60% of their investment and Non-Life Insurance about 40%. The mutual funds have the least investments in the hotel sector and no mutual funds have invested in trading companies.
Five banks occupy 40% of the mutual funds’ investments in the commercial banks sector. These banks are Everest Bank Ltd., Standard Chartered Bank Ltd., Nepal SBI Bank Ltd., Laxmi Bank Ltd. and NIC Asia Bank Ltd. Among these banks, mutual funds hold the most stocks of Everest Bank Ltd.
Mutual funds hold the least stocks of Prabhu Bank in the commercial bank sector. Only Nabil Balance Fund 1 holds stocks of Prabhu Bank.
In the Development Bank sector, 5 banks constitute almost two thirds of the mutual funds’ investment in the category. These five banks are Muktinath Development Bank Ltd., Shine Resunga Development Bank Ltd., Kailash Bikas Bank Ltd., Garima Bikas Bank Ltd. and City Development Bank Ltd. Muktinath alone constitutes almost 20% of their investments in this sector.
In the Microfinance category, 5 companies constitute almost 61% of the mutual funds’ investment in this category. These five companies are Chhimek Laghubitta Bikas Bank Ltd., Swabalamban Laghubitta Bikas Bank Ltd., Nerude Laghubitta Bikas Bank Ltd., Diprox Laghubitta Bikas Bank Ltd. and Nirdhan Utthan Laghubitta Bikas Bank Ltd.
Mutual funds have invested the largest portion of their portfolio in the commercial bank sector. 48% of the total investments by mutual funds have been in this sector. The second largest portion of their portfolio is occupied by the Insurance Sector which occupies 21% of their portfolio. Inside insurance, Life Insurance occupies almost 60% of their investment and Non-Life Insurance about 40%. The mutual funds have the least investments in the hotel sector and no mutual funds have invested in trading companies.
Five banks occupy 40% of the mutual funds’ investments in the commercial banks sector. These banks are Everest Bank Ltd., Standard Chartered Bank Ltd., Nepal SBI Bank Ltd., Laxmi Bank Ltd. and NIC Asia Bank Ltd. Among these banks, mutual funds hold the most stocks of Everest Bank Ltd.
Mutual funds hold the least stocks of Prabhu Bank in the commercial bank sector. Only Nabil Balance Fund 1 holds stocks of Prabhu Bank.
In the Development Bank sector, 5 banks constitute almost two thirds of the mutual funds’ investment in the category. These five banks are Muktinath Development Bank Ltd., Shine Resunga Development Bank Ltd., Kailash Bikas Bank Ltd., Garima Bikas Bank Ltd. and City Development Bank Ltd. Muktinath alone constitutes almost 20% of their investments in this sector.
In the Microfinance category, 5 companies constitute almost 61% of the mutual funds’ investment in this category. These five companies are Chhimek Laghubitta Bikas Bank Ltd., Swabalamban Laghubitta Bikas Bank Ltd., Nerude Laghubitta Bikas Bank Ltd., Diprox Laghubitta Bikas Bank Ltd. and Nirdhan Utthan Laghubitta Bikas Bank Ltd.
Investment of Mutual Fund in various sectors of listed companies in NEPSE
