Current Scenario of Mutual Funds Investments; NTC, NLIC & NABILP are favourites of mutual funds
Sat, Nov 4, 2017 5:00 AM on Latest, Exclusive, Mutual Fund, Mutual Fund, Featured, Others, Others, Stock Market,
Mutual fund is a type of professionally managed Investment fund that pools money from many investors to purchase securities. The collected fund is then invested in financial instruments such as Stocks, Bond/Debentures, Government Securities, and Fixed Deposits (as prescribed by Mutual Fund Regulation, 2067). Such investment decisions are made by a Fund Manager. Returns from the investment are shared proportionately among the investors on the basis of the units held by them. The rationale behind a mutual fund is that there are large numbers of investors who lack the time and the skills to manage their money. Hence professional fund managers, acting on behalf of the Mutual Fund, manage the investments (investor's money) for their benefit in return for a management fee. Mutual Fund is suitable investment vehicle for the small investors as it offers an opportunity to invest in a professionally managed diversified basket of securities at a relatively low cost.
Mutual Fund in Nepal is regulated by Securities Exchange Board of Nepal. Mutual Fund in Nepal can be issued, supervised and managed only by entities/individuals fulfilling the criteria led in Mutual Fund Regulation, 2067 and as authorized by SEBON.
Currently, there are 11 mutual funds in Nepal with Rs 9.75 arba as their total initial fund. All of these mutual funds are closed-end, which means they require broker to buy and sell (unlike open ended that can be purchased directly through the fund provider). 6 out of the 11 mutual funds have maturity period of 5 years and more and remaining 5 mutual funds have the less or the life of 5 years only.
The details of 11 mutual funds in Nepal including latest Aswin,2074 NAV are:
As per the above bar diagram, only three mutual funds; Nabil Equity Fund, NIBL Pragati Fund and Laxmi Equity Fund, have the high LTP as compare to their latest monthly Aswin,74 NAV remaining 8 other mutual funds are traded in the discounted rate.
Current Scenario of Mutual Funds Investments
As of Aswin, FY 2073/74; Mutual Funds holds the maximum investment in Nepal Doorsanchar Company Limited with investment of Rs.29.18 Cr’, followed by Nepal Life Insurance Co. Ltd. and Nabil Bank Limited Promoters Share with Rs.27.37 Cr’ and Rs.25.68 Cr’ respectively.
The top 10 investment of the mutual funds stands as:
Top 10 Mutual Funds Investments- Sector-wise
In terms of sector wise investment, the top 10 investments by mutual funds in different sector stands as:
1. BANKING SECTOR
Everest Bank holds the maximum investment with Rs.23.93 Cr’, followed by Himalayan Bank Limited and Nepal SBI Bank with Investment of Rs. 21.20 Cr’ and Rs.16.64 Cr’ respectively.
2. DEVELOPMENT BANK SECTOR
Similarly, in terms of development banks, MNBBL holds the maximum investment with Rs. 10.32 Cr’ followed by Garima BIkas Bank Limited with Rs. 4.79 Cr’ and Shine Resunga Development Bank with Rs. 4.02 Cr’ investments by mutual funds.
3. FINANCE SECTOR
Among 31 finance company listed in NEPSE, mutual funds show the interest only in the 8 finance companies specially invested on Citizen Investment Trust amounting Rs.9.37 Cr’ which also covers the 81% of total amount invested in finance sector.
4. HOTEL SECTOR
The 3 invested hotels with their investment amounts are:
5. HYDRO POWER SECTOR
Mutual funds hold the most investment in Chilime Hydropower Company Limited with total of Rs.17.45 Cr’. The next two big investments in Hydropower sector is in Butwal Power Company Limited and Sanima Mai Hydropower Limited with Rs. 8.80 Cr’ and Rs. 1.29 Cr’ respective investments.
6. MICRO FINANCE SECTOR
Sana Kisan BIkas Bank Ltd holds the most investment with Rs. 21.92 Cr’, followed by Deprosc Development and Nirdhan Utthan each with Rs. 15.02 Cr’ and Rs. 13.37 Cr’ investments respectively.
7. LIFE INSURANCE SECTOR
Nepal Life Insurance tops the investment in Life insurance sector with Rs.27.37 Cr’ investment preceding National Life Insurance and Asian Life Insurance Co Ltd with Rs. 24.37 Cr’ and Rs.16.72 Cr’ investment respectively.
8. NON-LIFE INSURANCE SECTOR
In terms non-life insurance, NLG Insurance with Rs. 20.34 Cr’ investments is the top invested company in non-life sector followed by Shikhar Insurance Co. Ltd with Rs. 19.78 Cr’ and Siddhartha Insurance with Rs. 17.72 Cr’.
9. MUTUAL FUNDS
Mutual funds can invest in other mutual funds as well. Likewise, NMB Sulav Investment Fund-1 has the biggest investment with Rs. 3.88 Cr’ followed by Siddhartha Investment Growth Scheme-1 and Siddhartha Equity Orineted Scheme with Rs. 3.36 Cr’ and Rs. 0.30 Cr’ respectively.
10. PROMOTER SHARES
The mutual funds also hold the promoter shares of different companies. NABIL Bank Limited Promotor Share has the biggest investment with Rs.25.68 Cr’ along with Nepal Investment Bank Ltd. Promoter Share and Century Commercial Bank Ltd. Promoter Share with Rs.15.68 Cr’ and Rs. 2.21 Cr’. The top promoter shares held by mutual funds are as:
11. PREFERENCE, MANUFACTURING AND OTHERS SECTOR
Lastly, mutual funds hold investments in these titled sectors too and their investment amount stands as:
Recently, Siddhartha Equity Fund floated its public issue of 12 crore unit shares worth Rs 1.20 arba having closed-end 10-years managed by Siddhartha Capital Limited and Siddhartha Bank Limited is its fund sponsor. Others 5 mutual funds have applied for approval with the Securities Board of Nepal (Sebon) to issue schemes worth NRs 4.9 billion. Global IME Balance Fund-1, Sanima Equity Fund, Citizen Mutual Fund-1, NIC Asia Growth Fund and NIBL Sahabhagita Fund are offering primary shares at Rs 10 per unit.
Applying for their first ever mutual funds schemes are Sanima Capital Limited and CBIL Capital Limited with their schemes as ‘Sanima Equity Fund’ and ‘Citizen Mutual Fund-1’ respectively.
The “Citizen Mutual Fund-1” fund is managed by CZBIL Capital Limited and Citizens Bank is the fund sponsor. The Citizen Mutual Fund-1 is worth NRs 1 billion with 100 million shares. While “Sanima Equity Fund” worth NRs 1.20 billion of 120 million units shares is managed by Sanima Capital Limited and the fund sponsor is Sanima Bank.
Global IME Capital Limited is also coming out with mutual fund scheme named Global IME balanced fund-1 managed and sponsored by Global IME Capital Limited, a wholly owned subsidiary of Global IME Bank limited worth NRs 1.20 billion with 120 million no. of shares
Global IME already has Global IME Sammunati Scheme-1 (GIMES-1) been listed in NEPSE.
NIC Asia Capital Limited is also coming out with its first ever mutual fund scheme named NIC Asia Growth fund which will be managed by NIC Asia Capital. NIC Asia Growth Fund will be issuing public issue of 100 million units worth Rs 1 billion.
Lastly, NIBL Capital Markets Limited is also coming out with mutual fund scheme named NIBl Sahabhagita Fund; a scheme managed by NIBL Capital Markets Limited, a wholly owned subsidiary of Nepal Investment Bank limited. NIBL Sahabhagita Fund is worth NRs 500 million.
NIBL Samriddhi Fund-1 and NIBl Pragati Fund are the two mutual funds by NIBL Capital Markets and are both are listed in Nepal Stock Exchange Limited.
As per the above bar diagram, only three mutual funds; Nabil Equity Fund, NIBL Pragati Fund and Laxmi Equity Fund, have the high LTP as compare to their latest monthly Aswin,74 NAV remaining 8 other mutual funds are traded in the discounted rate.
Current Scenario of Mutual Funds Investments
As of Aswin, FY 2073/74; Mutual Funds holds the maximum investment in Nepal Doorsanchar Company Limited with investment of Rs.29.18 Cr’, followed by Nepal Life Insurance Co. Ltd. and Nabil Bank Limited Promoters Share with Rs.27.37 Cr’ and Rs.25.68 Cr’ respectively.
The top 10 investment of the mutual funds stands as:
Top 10 Mutual Funds Investments- Sector-wise
In terms of sector wise investment, the top 10 investments by mutual funds in different sector stands as:
1. BANKING SECTOR
Everest Bank holds the maximum investment with Rs.23.93 Cr’, followed by Himalayan Bank Limited and Nepal SBI Bank with Investment of Rs. 21.20 Cr’ and Rs.16.64 Cr’ respectively.
2. DEVELOPMENT BANK SECTOR
Similarly, in terms of development banks, MNBBL holds the maximum investment with Rs. 10.32 Cr’ followed by Garima BIkas Bank Limited with Rs. 4.79 Cr’ and Shine Resunga Development Bank with Rs. 4.02 Cr’ investments by mutual funds.
3. FINANCE SECTOR
Among 31 finance company listed in NEPSE, mutual funds show the interest only in the 8 finance companies specially invested on Citizen Investment Trust amounting Rs.9.37 Cr’ which also covers the 81% of total amount invested in finance sector.
4. HOTEL SECTOR
The 3 invested hotels with their investment amounts are:
5. HYDRO POWER SECTOR
Mutual funds hold the most investment in Chilime Hydropower Company Limited with total of Rs.17.45 Cr’. The next two big investments in Hydropower sector is in Butwal Power Company Limited and Sanima Mai Hydropower Limited with Rs. 8.80 Cr’ and Rs. 1.29 Cr’ respective investments.
6. MICRO FINANCE SECTOR
Sana Kisan BIkas Bank Ltd holds the most investment with Rs. 21.92 Cr’, followed by Deprosc Development and Nirdhan Utthan each with Rs. 15.02 Cr’ and Rs. 13.37 Cr’ investments respectively.
7. LIFE INSURANCE SECTOR
Nepal Life Insurance tops the investment in Life insurance sector with Rs.27.37 Cr’ investment preceding National Life Insurance and Asian Life Insurance Co Ltd with Rs. 24.37 Cr’ and Rs.16.72 Cr’ investment respectively.
8. NON-LIFE INSURANCE SECTOR
In terms non-life insurance, NLG Insurance with Rs. 20.34 Cr’ investments is the top invested company in non-life sector followed by Shikhar Insurance Co. Ltd with Rs. 19.78 Cr’ and Siddhartha Insurance with Rs. 17.72 Cr’.
9. MUTUAL FUNDS
Mutual funds can invest in other mutual funds as well. Likewise, NMB Sulav Investment Fund-1 has the biggest investment with Rs. 3.88 Cr’ followed by Siddhartha Investment Growth Scheme-1 and Siddhartha Equity Orineted Scheme with Rs. 3.36 Cr’ and Rs. 0.30 Cr’ respectively.
10. PROMOTER SHARES
The mutual funds also hold the promoter shares of different companies. NABIL Bank Limited Promotor Share has the biggest investment with Rs.25.68 Cr’ along with Nepal Investment Bank Ltd. Promoter Share and Century Commercial Bank Ltd. Promoter Share with Rs.15.68 Cr’ and Rs. 2.21 Cr’. The top promoter shares held by mutual funds are as:
11. PREFERENCE, MANUFACTURING AND OTHERS SECTOR
Lastly, mutual funds hold investments in these titled sectors too and their investment amount stands as:
Recently, Siddhartha Equity Fund floated its public issue of 12 crore unit shares worth Rs 1.20 arba having closed-end 10-years managed by Siddhartha Capital Limited and Siddhartha Bank Limited is its fund sponsor. Others 5 mutual funds have applied for approval with the Securities Board of Nepal (Sebon) to issue schemes worth NRs 4.9 billion. Global IME Balance Fund-1, Sanima Equity Fund, Citizen Mutual Fund-1, NIC Asia Growth Fund and NIBL Sahabhagita Fund are offering primary shares at Rs 10 per unit.
Applying for their first ever mutual funds schemes are Sanima Capital Limited and CBIL Capital Limited with their schemes as ‘Sanima Equity Fund’ and ‘Citizen Mutual Fund-1’ respectively.
The “Citizen Mutual Fund-1” fund is managed by CZBIL Capital Limited and Citizens Bank is the fund sponsor. The Citizen Mutual Fund-1 is worth NRs 1 billion with 100 million shares. While “Sanima Equity Fund” worth NRs 1.20 billion of 120 million units shares is managed by Sanima Capital Limited and the fund sponsor is Sanima Bank.
Global IME Capital Limited is also coming out with mutual fund scheme named Global IME balanced fund-1 managed and sponsored by Global IME Capital Limited, a wholly owned subsidiary of Global IME Bank limited worth NRs 1.20 billion with 120 million no. of shares
Global IME already has Global IME Sammunati Scheme-1 (GIMES-1) been listed in NEPSE.
NIC Asia Capital Limited is also coming out with its first ever mutual fund scheme named NIC Asia Growth fund which will be managed by NIC Asia Capital. NIC Asia Growth Fund will be issuing public issue of 100 million units worth Rs 1 billion.
Lastly, NIBL Capital Markets Limited is also coming out with mutual fund scheme named NIBl Sahabhagita Fund; a scheme managed by NIBL Capital Markets Limited, a wholly owned subsidiary of Nepal Investment Bank limited. NIBL Sahabhagita Fund is worth NRs 500 million.
NIBL Samriddhi Fund-1 and NIBl Pragati Fund are the two mutual funds by NIBL Capital Markets and are both are listed in Nepal Stock Exchange Limited.
