What does SS Pro say about the performance of mutual fund industry in the month of Shrawan?

There are currently 13 mutual funds schemes run by 9 fund management companies. Mutual funds are still in the infant stage in our country. The status of mutual funds is still subtle as investors lack financial awareness on these funds. The SS Pro software of ShareSansar has eased the evaluation of the top companies in which mutual funds preferred to invest in the month of Shrawan, 2075. This will be of help to investors to make informed investment decisions. Mutual funds are compromised with professionals and experts thus; many investors rely upon these mutual funds so that individual investors can create their own portfolio. The LTP and investment value provided in table is as of 3^rd September, 2018.

One of the features of SS Pro shows the buy and sales list by the overall mutual fund industry. The following are the top ten preferred companies by the overall industry for the purchase in the month of Shrawan, 2075.

Similarly, following are the top 10 companies that the mutual fund industry decided to sell in the month of Shrawan, 2075:

Sector-wise Breakdown

As of the end of Shrawan 2075, the 13 mutual funds have a total investment value of Rs 5.90 arba in equities. Investment in commercial banking industry accounts for the highest sector-wise investment of Rs 1.80 arba. Likewise, they have investment of Rs 88.86 crore in shares of Microfinance, accounting for the second-highest sector-wise value. Life insurance companies sector stands at the third highest investment priority for mutual funds with an investment worth Rs 71.30 crores.

Commercial banks:

Among the commercial banks, NMB Bank (NMB) is seen as the top priority for investment by mutual funds. It accounts an investment worth Rs 18.05 crores. Everest Bank limited (EBL) stands at the second position with investment of 16.59 crores. Himalayan Bank Limited (HBL) has an investment Rs 12.57 crores in the third position.

Development Banks:

As for the development banks, Muktinath Bikas Bank Limited (MNBBL) has the highest investment preference among mutual funds. The mutual funds have invested an amount worth Rs 8.17 crores. Garima Bikas Bank Limited (GBBL) has an investment of Rs 3.20 crores at the second position. Shine Resunga Development Bank Limited (SHINE) is seen in the third position with an investment worth Rs 3.12 crores.

Microfinance companies:

Among the listed microfinance companies, Sana Kisan Bikas Bank Ltd. (SKBBL), Chhimek Laghubitta Bikas Bank Ltd. (CBBL) and Deprosc Development Bank Ltd. (DDBL) were the top three investment priorities for mutual funds. Mutual funds invested Rs 15.81 crores in Sana Kisan, Rs 14.62 crores in Chhimek Laghubitta Bikas Bank Limited (CBBL) and Rs 10.57 crores in Deprosc Development (DDBL).

Life Insurance companies:

Among the life insurance companies in Nepal, Nepal Life Insurance Company Limited (NLIC), Life Insurance Company Limited (LICN) and National Life Insurance Company Limited (NLICL) are the investment companies of top priorities for mutual funds. Mutual funds schemes have around Rs 22.56 crore investments in NLIC, Rs 16.53 crore investments in LICN and Rs 14.16 crores investment in NLICL.

Non-Life Insurance companies:

Among the non-life insurance companies in Nepal, Shikhar Insurance Company Limited (SICL), Sagarmatha Insurance Company Limited (SIC) and Siddhartha Insurance Limited (SIL) are the investment companies of top priorities for mutual funds. Mutual funds schemes have around Rs 12.58 crore investments in SICL, Rs 10.37 crore investments in SIC and Rs 9.94 crores investment in SIL.

Hydropower companies:

The inclination of investment in hydropower companies for mutual funds was in Chilime Hydropower Company (CHCL) with an investment of Rs 13.59 crore, Butwal Power Company Limited (BPCL) with an investment of Rs 11.36 crore and Sanima Mai Hydropower Company (SHPC) with an investment of Rs 3.89 crore.

Finance:

As for finance companies, the top three investments were Shrijana Finance (SFFIL), Goodwill Finance (GFCL) and ICFC Finance Limited (ICFC). Mutual funds invested an amount of Rs 53.93 lakhs in Shrijana Finance, Rs 25.77 lakhs in Goodwill Finance and Rs 15.33 lakhs in ICFC Finance Limited.

Hotels:

Among the three listed hotels in NEPSE, mutual funds have given higher priority to Oriental Hotels Limited (OHL) with an investment of Rs 2.58 crores.

Mutual fund:

The mutual fund schemes also invest in other mutual funds. The mutual funds have preferred NMB Sulav Investment Fund-1 (NMBSF1) as the best scheme for investment. It has an investment that accounts to Rs 2.91 crore. Siddhartha Equity Oriented Scheme (SEOS) falls under the second highest investment value mutual fund. It has an investment of Rs 1.57 crores. Finally Citizens Mutual Funds (CMF1) has a third highest investment of Rs 1.37 crores. Investors looking for investing in mutual funds can also consider these ranking.

Manufacturing & Production:

Mutual funds have invested Rs 1.18 crores in Unilever Nepal Limited (UNL) as of Shrawan, 2075.

Others:

As for the others sector, mutual funds have invested Rs 23.19 crores in Nepal Doorsanchar Company Limited (NTC), Rs 18.52 crores investment in Citizen Investment Trust (CIT),  and Rs 2.13 crores in Jalabidyut Lagani Tatha Bikas (HIDCL).

 Preference shares and Promoter shares:

Similarly, the preference and promoter shares as per the choice of mutual funds are:

Hence, the overall analysis draws the top companies preferred by mutual funds for investment. This article might be helpful to the aspiring investors in the secondary market. What are your views on the mutual funds? Do you think the top investment decisions made by mutual funds are backed up with rationality? Please write to us in the comment section below.

(Disclaimer:  Any kind of information that is provided in the article should not be used as a sole advice or recommendation by investors in order to design their investment portfolio. So, before taking steps for any kind of the information, the investors are required to base their judgment on their own financial analysis, appropriateness of the information and seek independent financial advice. The information of the company has been taken from the authorized sources such as website of the company, NEPSE, financial reports and press releases of the companies so, any changes not updated in these may differ in the analysis.)