How Did Mutual Fund Perform in the Month of Baisakh? A Complete Analysis of Multiple Factors

There are currently 22 mutual funds in the country. Sunrise Bluechip Fund (SBCL) is a new mutual fund added to the list.

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Mutual Funds have an investment in listed/unlisted companies of Rs. 19.76 Arba in Baisakh compared to Rs. 19.61 Arba in Chaitra. Similarly, mutual funds have increased the bank balance to Rs. 8.66 Arba in Baisakh from Rs. 8.30 Arba in Chaitra. Mutual Funds have invested in debentures and bonds amounting to Rs. 1.98 Arba. Similarly, the funds also have invested 1.73% in primary shares which amount to Rs. 58.05 crores.

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

The topmost bought stocks in Baisakh by the overall mutual fund industry are as follows:

The topmost sold stocks in Baisakh by the overall mutual fund industry are as follows:

Sector-wise Breakdown

Investment in the commercial banking industry accounts for the highest sector-wise investment of Rs. 7.61 Arba, making up 39.23% of total investment. Likewise, they have an investment of Rs. 2.48 Arba in shares of microfinance companies, accounting for 12.82% of total investment. The Non-Life Insurance sector stands at the third-highest investment priority for mutual funds with an investment worth Rs. 2.12 Arba, contributing 10.92% of total investments.

Commercial Banks:

Among the commercial banks, NIC Asia Bank Limited (NICA) is seen as the top priority for investment by mutual funds. It accounts for an investment worth Rs. 1.08 Arba. Nabil Bank Limited (NABIL) stands at the second position with an investment of Rs. 95.54 crores. Nepal Bank Limited (NBL) stands at third position with an investment of Rs. 68.09 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. 30.39 crores. Garima Bikas Bank Limited (GBBL) is seen in the second position with an investment worth Rs. 27.79 crores. Shine Resunga Development Bank Limited (SHINE) has an investment of Rs. 14.39 crores at the third position.

Finance:

As for the finance companies, the top three investments were ICFC Finance Limited (ICFC) and Shree Investment Finance company Limited (SIFC). Mutual funds invested an amount of Rs. 4.37 Crores in ICFC, Rs. 80.02 lakhs in SIFC.

Hotels and Tourism:

Among the four listed hotels in NEPSE, mutual funds have given higher priority to Chandragiri Hills Limited (CGH) with an investment of Rs. 8.08 crores.

Hydropower Companies:

The inclination of investment in hydropower companies for mutual funds was in Chilime Hydropower Company Limited (CHCL) with an investment of Rs. 19.31 crores, Butwal Power Company Limited (BPCL) with an investment of Rs. 14.63 crores and Rasuwagadhi Hydropower Company Limited (RHPL) with an investment of Rs. 7.26 crores.

Life Insurance Companies:

Among the life insurance companies in Nepal, National Life Insurance Company Limited (NLICL), Nepal Life insurance Company Limited (NLIC), and Life Insurance Corporation Limited (LICN) are the investment companies of top priorities for mutual funds. Mutual Fund schemes have around Rs. 40.76 crores in investments in NLICL, Rs. 40.25 crores investments in NLIC, and Rs. 38.38 crores in LICN.

Manufacturing and Products:

Mutual Funds have invested Rs. 25.04 crores in Himalayan Distillery Limited (HDL), Rs. 5.92 crores in Bottlers Nepal (Terai) Limited (BNT) and Rs. 5.89 crore in Shivam Cements Limited (SHIVM) as of Baisakh, 2078.

Microfinance Companies:

Among the listed microfinance companies, Sana Kisan Laghubitta Bittiya Sanstha Limited (SKBBL), Nirdhan Utthan Laghubitta Bittiya Sanstha Limited (NUBL), and RMDC Laghubitta Bittiya Sanstha Limited (RMDC) were the top three investment priorities for mutual funds. Mutual Funds invested Rs. 42.68 crores in SKBBL, Rs. 33.70 crores in NUBL, and Rs. 27.05 crores in RMDC.

Mutual Fund:

The mutual fund schemes also invest in other mutual funds.

NMB 50 (NMB50) falls under the highest investment value mutual fund. It has an investment of Rs. 6.43 crores. Sanima Equity Fund (SAEF) has the second-highest equity fund of the value of Rs. 4.98 crores. Finally, Sunrise First Mutual Fund (SFMF) stood third-highest investment of Rs. 4.84 crores.

Non-Life Insurance companies:

Among the non-life insurance companies in Nepal, Neco Insurance Company Limited (NIL), Shikhar Insurance Company Limited (SICL), and Premier Insurance Company Limited (PIC) are the investment companies of top priorities for mutual funds. Mutual Fund schemes have around Rs. 45.73 crores investments in NIL, Rs. 39.36 crores in SICL, and Rs. 23.13 crores in PIC.

Preference shares and Promoter shares:

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

Others:

As for the other sector, mutual funds have invested Rs. 72.55 crores in Nepal Reinsurance Company Limited (NRIC), Rs. 32.78 crores in Nepal Doorsanchar Company Limited (NTC).

Investment:

The investment sector is the new sector added to the Nepalese Stock Market (NEPSE).

As for the Investment sector, Nepal Infrastructure Bank Limited (NIFRA) has the highest investment worth Rs. 65.24 crores. Similarly, Citizen Investment Trust (CIT) stands in the second position with an investment of Rs. 37.86 crores.

Merged Companies:

Mutual Fund has also invested in previously merged companies. 

Change in NAV:

NAV stands for Net Asset Value at which represents a fund’s per unit market value. Investors use this Value for the transaction of a particular mutual fund in the market. Since the NAV is calculated by subtracting all the liabilities from the total value of all the assets in a portfolio, the value changes in accordance with the change in their asset and liabilities.

In the month of Baisakh, 2078, Kumari Equity Fund (KEF) has the NAV of Rs. 10.34; a gain of 0.78%. KEF is followed by NICA Asia Dynamic Debt Fund (NADDF) with the NAV of Rs. 11.16; a gain of 0.54%.

Analyzing the pattern of investment of mutual fund schemes can help investors design their own investment portfolios, customize them on the basis of risk-taking capacity. It is also helpful for relatively new investors to make buy/sell decisions based on the decisions of the mutual fund's schemes and safeguard themselves against some risk.

All the data are generated from SSpro Software. To know more about the software, click on the link below

SSpro

Disclaimer: Any kind of information that is provided in the article should not be used as sole advice or recommendation by investors in order to design their investment portfolio. So, before taking steps for any kind of information, the investors are required to base their judgment on their financial analysis, appropriateness of the information, and seek independent financial advice. The information of the company has been taken from the authorized sources like the 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.