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

There are currently 18 mutual funds in the country. Out of 18 mutual funds, Siddhartha Equity Oriented Scheme (SEOS), Siddhartha Investment Growth Scheme (SIGS1), Nabil Balance Fund (NBF1), and NMB Sulav Investment Fund-1 (NMBSF1), and Laxmi Value Fund (LVF1) got matured. Citizens Mutual Fund-2 (CMF2), NIBL Sahabhagita Fund (NIBLSF), NIC Asia Balanced Fund (NICBF) (open-end mutual fund), NMB 50 (NMB50), Siddhartha Investment Growth Scheme-2 (SIGS2), Sunrise First Mutual Fund (SFMF), and Laxmi Unnati Kosh (LUK) are new mutual funds added to the list.

Mutual Funds have an investment in listed/unlisted funds of Rs. 12.35 Arba in Ashwin compared to Rs. 11.98 Arba in Bhadra. Similarly, mutual funds have decreased their bank balance to Rs. 3.84 Arba in Ashwin from Rs. 4.32 Arba in Bhadra. Mutual Funds’ investments in debentures and bonds amounting to Rs. 1.54 Arba. Similarly, the funds also have invested 0.90% in primary shares which amount to Rs. 17.54 crores.

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

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

The topmost sold stocks in Ashwin 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. 5.44 Arba, making up 44.07% of total investment. Likewise, they have an investment of Rs. 1.70 Arba in shares of microfinance companies, accounting for 13.84% of total investment. The Non-Life insurance sector stands at the third-highest investment priority for mutual funds with an investment worth Rs. 1.27 Arba, contributing 10.29% 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 for an investment worth Rs. 57.36 crores. Nepal Bank Limited (NBL) stands at the second position with an investment of Rs. 44.58 crores. NIC Asia Bank Limited (NICA) stands with the investment of Rs. 36.17 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. 23.30 crores. Shine Resunga Development Bank Limited (SHINE) is seen in the second position with an investment worth Rs. 12.13 crores. Garima Bikas Bank Limited (GBBL) has an investment of Rs. 11.56 crores in the third position.

Finance:

As for the finance companies, the top three investments were ICFC Finance Limited (ICFC), Shree Investment Finance Company Limited (SIFC), and Guheshwori Merchant Banking and Finance Limited (GMFIL). Mutual funds invested an amount of Rs. 83.96 lakhs in ICFC, Rs. 49.17 Lakhs in SIFC and Rs. 22.47 Lakhs in GMFIL.

Hotels:

Among the three listed hotels in NEPSE, mutual funds have given higher priority to Oriental Hotel Limited (OHL) with an investment of Rs. 3.60 crores.

Hydropower Companies:

The inclination of investment in hydropower companies for mutual funds was in Chilime Hydropower Company (CHCL) with an investment of Rs. 15.40 crores, Butwal Power Company Limited (BPCL) with an investment of Rs. 11.78 crores and Rasuwa Gadhi Hydropower Limited (RHPC) with an investment of Rs. 7.92 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 top investment priorities for mutual funds. Mutual Fund schemes have around Rs. 36.75 crores in investments in NLICL, Rs. 31.26 crores investments in NLIC and Rs. 27.38 crores in LICN.

Manufacturing and Products:

Mutual Funds have invested Rs. 7.55 crores in Himalayan Distillery Limited (HDL), Rs. 3.75 crores in Bottlers Nepal Terai Limited (BNT) and Rs. 1.22 crores in Shivam Cements Limited (SHIVM) as of Bhadra, 2077.

Merged:

Mutual Fund have invested a total of Rs. 13.97 Lakhs in GDBL. Recently, Gandaki Development Bikas Bank was merged with Mega Bank Nepal Limited. 

Microfinance Companies:

Among the listed microfinance companies, Chimmek Laghubitta Bittiya Sanstha Limited (CBBL), Sana Kisan Laghubitta Bittiya Sanstha Limited (SKBBL), and Nirdhan Utthan Laghubitta Bittiya Sanstha Limited (NUBL) were the top three investment priorities for mutual funds. Mutual Funds invested Rs. 32.42 crores in CBBL, Rs. 29.35 crores in SKBBL and Rs. 17.19 crores in NUBL.

Mutual Fund:

The mutual fund schemes also invest in other mutual funds.

Nabil Balanced Fund-2 (NBF2) falls under the highest investment value mutual fund. It has an investment of Rs. 2.47 crores. Sanima Equity Fund (SAEF) has the second-highest equity fund of the value of Rs. 1.70 crores. Finally, Sunrise First Mutual Fund (SFMF) stood third-highest investment of Rs. 1.38 crores.

Non-Life Insurance companies:

Among the non-life insurance companies in Nepal, Shikhar Insurance Company Limited (SICL), NLG Insurance Company Limited (NLG), and Neco Insurance Company Limited (NIL) are the investment companies of top priorities for mutual funds. Mutual Fund schemes have around Rs. 28.93 Crores investments in SICL, Rs. 18.46 crores in NLG and Rs. 17.97 crores in NIL.

Others:

As for the other sector, mutual funds have invested Rs. 46.01 crores in Nepal Doorsanchar Company Limited (NTC), Rs. 18.57 crores in Nepal Reinsurance company Limited (NRIC) and Rs. 13.58 crores in Citizen Investment Trust (CIT).

Preference shares and Promoter shares:

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

Analyzing the pattern of investment of mutual fund schemes can help investors 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 fund's schemes and safeguard themselves against some risk.

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.