Find out mutual funds' choice of investment for the last month! Rs 20 crores invested in primary shares!

There are 18 mutual funds in the country currently. Out of 18, Siddhartha Equity Oriented Scheme (SEOS), Siddhartha Investment Growth Scheme (SIGS1), Nabil Balance Fund (NBF1) and NMB Sulav Investment Fund-1 (NMBSF1) got matured recently. Nabil Balance Fund 2 (NBF2), Citizens Mutual Fund 2 (CMF2), NMB 50 (NMB 50), NIC Asia Balanced Fund (NICBF), Siddhartha Investment Growth Scheme - 2 (SIGS2), NIBL Sahabhagita Fund (NIBLSF) (open end mutual fund) and Sunrise First Mutual Fund (SFMF) are new mutual funds added to the list.

Mutual funds have an investment in listed/ unlisted funds of Rs 8.05 arba in Kartik compared to Rs 7.097 arba in Aswin. Similarly, mutual funds have slightly increased bank balance from Rs 5.51 arba in Aswin to Rs 5.56 arba. Mutual funds investment in debentures and bonds amounts to Rs 96.17 crores. Similarly, the funds also have invested 1.20% in primary shares which amounts to Rs 20.66 crores.

The top investments by mutual funds irrespective of sectors in the month of Kartik are as follows:

The top most bought stocks in Kartik by the overall mutual fund industry are as follows:

The top most sold stocks in Kartik by the overall mutual fund industry are as follows:

Sector-wise Breakdown

Investment in commercial banking industry accounts for the highest sector-wise investment of Rs 3.29 arba. Likewise, they have investment of Rs 81.22 crores in shares of microfinance companies, 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 58.30 crores.

Commercial banks:

Among the commercial banks, Nepal Bank Limited (NBL) is seen as the top priority for investment by mutual funds. It accounts an investment worth Rs 40.22 crores. Nabil Bank Limited (NABIL) stands at the second position with investment of Rs 37.61 crores. Agriculture Development Bank Limited (ADBL) stands with the investment of Rs 19.84 crores.

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 14.63 crores. Shine Development Bank Limited (SHINE) is seen in the second position with an investment worth Rs 7.60 crores. Garima Bikas Bank Limited (GBBL) has an investment of Rs 6.51 crores at the third position.

Microfinance companies:

Among the listed microfinance companies Chhimek Laghubitta Bikas Bank Ltd. (CBBL), Sana Kisan Bikas Bank Limited (SKBBL) and Deprosc Development Bank Ltd. (DDBL) were the top three investment priorities for mutual funds. Mutual funds invested Rs 13.23 crores in Chhimek Laghubitta Bikas Bank Ltd. (CBBL) Rs 12.57 crores in Sana Kisan Bikas Bank Limited (SKBBL), and Rs 11.77 crores in Deprosc Development (DDBL).

Life Insurance companies:

Among the life insurance companies in Nepal, Nepal Life Insurance Company Limited (NLIC), National Life Insurance Company Limited (NLICL) and Life Insurance Company Limited (LICN) are the investment companies of top priorities for mutual funds. Mutual funds schemes have around Rs 27.33 crore investments in NLIC, Rs 13.59 crore investments in NLICL and Rs 9.95 crores investment in LICN.

Non-Life Insurance companies:

Among the non-life insurance companies in Nepal, Shikhar Insurance Company Limited (SICL), Neco Insurance Company Limited (NIL) and NLG Insurance Company Limited (NLG) are the investment companies of top priorities for mutual funds. Mutual funds schemes have around Rs 9.72 crore investments in SICL, Rs 6.79 crore investments in NIL and Rs 6.54 crores investment in NLG.

Hydropower companies:

The inclination of investment in hydropower companies for mutual funds was in Chilime Hydropower Company (CHCL) with an investment of Rs 12.52 crores, Butwal Power Company Limited (BPCL) with an investment of Rs 10.05 crores and Rasuwagadhi Hydropower Company (RHPL) with an investment of Rs 4.85 crore.

Finance:

As for finance companies, the top three investments were ICFC Finance Limited (ICFC), Manjushree Finance Limited (MFIL) and Goodwill Finance (GFCL). Mutual funds invested an amount of Rs 77.33 lakhs in ICFC, Rs 34.99 lakhs in MFIL Finance and Rs 29.36 lakhs in Goodwill Finance Limited.

Hotels:

Among the three listed hotels in NEPSE, mutual funds have given higher priority to Soaltee Hotels Limited (SHL) with an investment of Rs 1.72 crores.

Mutual fund:

The mutual fund schemes also invest in other mutual funds.

NMB Sulav Investment Fund-1 (NMBSF1) falls under the highest investment value mutual fund. It has an investment of Rs 98.64 lakhs. Citizens Mutual Funds (CMF1) has second highest equity fund of the value Rs 93.55 lakhs. Finally Sanima Equity Fund (SAEF) has a third highest investment of Rs 88.81 lakhs.

Manufacturing & Production:

Mutual funds have invested Rs 1.63 crores in Bottlers Nepal Terai Limited, Rs 89.95 lakhs in Himalayan Distillery (HDL), Rs 44.84 lakhs in Unilever Company Limited (UNL) and Rs 98.60 lakhs in Shivam Limited (SHIVM) as of Kartik, 2076.

Others:

As for the others sector, mutual funds have invested Rs 21.65 crores in Nepal Doorsanchar Company Limited (NTC), Rs 5.65 crores investment in Citizen Investment Trust (CIT),  and Rs 1.46 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.)