Look at top investment preferences for mutual fund schemes in the month of Poush; which stocks were preferred from each sector?

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.9.21 Arba in Poush compared to Rs.8.64 Arba in Mangsir. Similarly, mutual funds have slightly increased bank balance from Rs.5.10 Arba in Mangsir to Rs.5.21 Arba in Poush. Mutual funds investment in debentures and bonds amounts to Rs.1.01 Arba. Similarly, the funds also have invested 2.68% in primary shares which amounts to Rs.46.37 Crores.

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

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

The top most sold stocks in Poush 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.3.71 Arba, making up 47.89% of total investment. Likewise, they have investment of Rs.88.52 Crores in shares of microfinance companies, accounting for 11.41% of total investment. Life Insurance sector stands at the third highest investment priority for mutual funds with an investment worth Rs.73.47 Crores, contributing 9.47% of total investments.

Commercial Banks:

Among the commercial banks, Nabil Bank Limited (NABIL) is seen as the top priority for investment by mutual funds. It accounts an investment worth Rs.39.95 Crores. Nepal Bank Limited (NBL) stands at the second position with investment of Rs.33.22 Crores. Global IME Bank Limited (GBIME) stands with the investment of Rs.25.22 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.20.67 Crores. Garima Bikas Bank Limited (GBBL) is seen in the second position with an investment worth Rs.9.22 Crores. Shine Development Bank Limited (SHINE) has an investment of Rs.9.11 Crores at the third position.

Finance:

As for finance companies, the top three investments were ICFC Finance Limited (ICFC), Goodwill Finance (GFCL) and United Finance Limited (UFL). Mutual funds invested an amount of Rs.1.01 Crore in ICFC, Rs.29.78 Lakhs in GFCL and Rs.26.77 Lakhs in UFL.

Hotels:

Among the three listed hotels in NEPSE, mutual funds have given higher priority to Oriental Hotels Limited (OHL) with an investment of Rs.1.88 Crores.

Hydropower companies:

The inclination of investment in hydropower companies for mutual funds was in Chilime Hydropower Company (CHCL) with an investment of Rs.14.84 Crores, Butwal Power Company Limited (BPCL) with an investment of Rs.9 Crores and Rasuwagadhi Hydropower Company (RHPL) with an investment of Rs.5.08 Crore.

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.30.73 Crore investments in NLIC, Rs.19.75 Crore investments in NLICL and Rs.11.60 Crores investment in LICN.

Manufacturing & Production:

Mutual funds have invested Rs.1.57 Crores in Bottlers Nepal Terai Limited (BNT), Rs.55.84 Lakhs in Himalayan Distillery (HDL) and Rs.42.40 Lakhs in Unilever Company Limited (UNL) as of Poush, 2076.

Microfinance companies:

Among the listed microfinance companies Chhimek Laghubitta Bikas Bank Ltd. (CBBL), Sana Kisan Bikas Bank Limited (SKBBL) and RMDC Laghubitta Bittiya Sanstha (RMDC) and were the top three investment priorities for mutual funds. Mutual funds invested Rs.16.98 Crores in CBBL, Rs.14.86 Crores in SKBBL and Rs.10.22 Crores in RMDC.

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.98.56 Lakhs. Finally Sanima Equity Fund (SAEF) has a third highest investment of Rs.98.31 Lakhs.

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.12.91 Crore investments in SICL, Rs.8.95 Crore investments in NIL and Rs.8.72 Crores investment in NLG.

Others:

As for the others sector, mutual funds have invested Rs.22.69 Crores in Nepal Doorsanchar Company Limited (NTC), Rs.6.95 Crores investment in Citizen Investment Trust (CIT),  and Rs.1.82 Cores in Hydropower Investment and Development Company Limited  (HIDCL).

Preference shares and Promoter shares:

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

Analyzing the pattern of investment of mutual fund schemes can help the investor design their own investment portfolios, customize 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 funds schemes and safeguard themselves against some risk.

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.