Overview of Mutual Fund Trends in Nepal: Sector-wise Investments, Top Stocks, and NAV Changes in Jestha
Mon, Jul 1, 2024 5:52 AM on Mutual Fund, National, Latest,
There are currently 36 closed-end mutual funds listed on the Nepal Stock Exchange, whereas 7 open-end schemes are traded directly in the respective fund manager.
*Note that Laxmi Equity Fund (LEMF) has reached maturity, so its NAV report is unavailable.
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Mutual Fund Schemes have an accumulative investment in listed/unlisted companies of Rs. 32.76 Arba in the month of Jestha, 2081 compared to Rs. 30.47 Arba in Baisakh, 2080.
Similarly, the mutual fund bank balance increased to Rs. 7.32 Arba in Jestha from Rs. 7.39 Arba in Baisakh. Mutual Funds have invested in debentures and bonds amounting to Rs. 3.57 Arba. Similarly, the funds also have invested 2.14% in primary shares/Rights which amounts to Rs. 1.04 Arba.
The top investments by mutual funds irrespective of sectors in the month of Jestha are as follows:
The topmost bought stocks in Jestha by the overall mutual fund industry are as follows:
The topmost sold stocks in Jestha by the overall mutual fund industry are as follows:
Sector-wise Breakdown
Mutual funds had significant holdings in various sectors as of the end of Jestha. Investment in the commercial banking industry accounts for the highest sector-wise investment of Rs. 6.97 Arba, making up 21.31% of total investment. Likewise, they have an investment of Rs. 4.6 Arba in shares of the Non-Life Insurance sector, accounting for 14.07% of the total investment. The Life Insurance sector stands at the third-highest investment priority for mutual funds with an investment worth Rs. 4.01 Arba, contributing 12.27% of total investments.
Smaller allocations were observed in sectors like manufacturing and products, promoter share, and others. These sector-wise holdings provide insight into the diversification strategies employed by mutual funds and their preferences for sector exposure.
Commercial Banks:
Among the commercial banks, Sanima Bank Limited (SANIMA) is seen as the top priority for investment mutual funds. It accounts for an investment worth Rs. 81.8 Crores. NIC Asia Bank Limited (NICA) stands in the second position with an investment of Rs. 79.5 crores. Everest Bank Limited (EBL) stands in the third position with an investment of Rs. 53.5 crores.
Development Banks:
As for the development banks, Garima Bikas Bank Limited (GBBL) has the highest investment preference among mutual funds. The mutual funds have invested an amount worth Rs. 63.54 crores. Muktinath Bikas Bank Limited (MNBBL) is seen in the second position with an investment worth Rs. 56.8 crores. Shine Resunga Development Bank Limited (SHINE) has an investment of Rs. 40.34 crores in the third position.
Finance:
As for the finance companies, the top two investments were Manjushree Finance Limited (MFIL) and Guheswori Merchant Banking & Finance Limited (GMFIL). Mutual funds invested Rs. 15.26 Crores in MFIL and Rs. 3.83 Crores in GMFIL.
Hotels and Tourism:
Among the six listed hotels and the tourism sector in NEPSE, mutual funds have given higher priority to Soaltee Hotel Limited (SHL) with an investment of Rs. 16.72 crores.
Hydropower Companies:
The inclination of investment in hydropower companies for mutual funds was in Sanima Mai Hydropower Limited (SHPC) with an investment of Rs. 38.02 crores, with an investment of Mountain Energy Nepal Limited (MEN) Rs. 36.47 crores, and Api Power Company Limited (API) with an investment of Rs. 20.69 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 priority for mutual funds. Mutual Fund schemes have around Rs. 90.78 crore in investments in NLICL, Rs. 66.26 crore in investments in NLIC, and Rs. 57.29 crore in LICN.
Manufacturing and Products:
Mutual Funds have invested Rs. 54.35 crore in Shivam Cements Limited (SHIVM), Rs. 34.96 crore in Sarbottam Cement Limited (SARBTM), and Rs. 22.59 crore in Himalayan Distillery Limited (HDL) as of Jestha, 2081.
Microfinance Companies:
Among the listed microfinance companies, Chhimek 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. 88.9 crore in CBBL, Rs. 80.16 crore in SKBBL, and Rs. 47.64 crore in NUBL.
Mutual Fund:
The mutual fund schemes also invest in other mutual funds. Citizens Super 30 Mutual Fund (C30MF) falls under the highest investment value mutual fund. It has an investment of Rs. 20 crores. NIBL Stable Fund (NIBLSTF) has the second-highest equity fund with a value of Rs. 19.85 crores. Finally, Sunrise Focused Equity Fund (SFEF) stood third-highest investment of Rs. 18.7 crores.
Non-life insurance companies:
Among the non-life insurance companies in Nepal, Neco Insurance Company Limited (NIL), Siddhartha Premier Insurance Limited (SPIL), and Sagarmatha Lumbini Insurance Company Limited (SALICO) are the investment companies of top priority for mutual funds. Mutual Fund schemes have around Rs. 97.08 crore investments in NIL, Rs. 86.62 crore in SPIL, and Rs. 83.9 crore in SALICO.
Promoter shares:
Similarly, the promoter share as per the choice of mutual funds are:
Others:
As for the other sector, mutual funds have invested Rs. 92.81 Crores in Himalayan Reinsurance Limited (HRL), and Rs. 38.71 crores in Nepal Doorsanchar Company Limited (NTC).
Investment:
As for the Investment sector, Citizen Investment Trust (CIT) has the highest investment worth Rs. 34.94 crores. Similarly, CEDB Hydropower Development Company Limited (CHDC) stands in the second position with an investment of Rs. 9.72 crores.
Change in NAV:
NAV stands for Net Asset Value which represents a fund’s per unit market value. Investors use this value to transact 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 following the change in their asset and liabilities.
In the month of Jestha, 2081, NMB 50 (NMB50) NAV gained the highest by 5.60%. Conversely, NIC Asia Growth Fund 2 (NICGF2) gained the least 0.62%.
| S. No. | Mutual Fund | Symbol | NAV as of Jestha | NAV as of Baisakh | Price Change | % Change |
|---|---|---|---|---|---|---|
| 1 | NMB 50 | NMB50 | 11.12 | 10.53 | 0.59 | 5.60% |
| 2 | NMB Sulav Investment Fund - II | NSIF2 | 11.62 | 11.11 | 0.51 | 4.59% |
| 3 | NMB Saral Bachat Fund - E | NMBSBF | 9.26 | 8.88 | 0.38 | 4.28% |
| 4 | Siddhartha Investment Growth Scheme-2 | SIGS2 | 9.84 | 9.47 | 0.37 | 3.91% |
| 5 | Sunrise Bluechip Fund | SBCF | 9.88 | 9.52 | 0.36 | 3.78% |
| 6 | Citizens Mutual Fund - 2 | CMF2 | 9.90 | 9.54 | 0.36 | 3.77% |
| 7 | Shubha Laxmi Kosh | SLK | 10.29 | 9.92 | 0.37 | 3.73% |
| 8 | Siddhartha Investment Growth Scheme 3 | SIGS3 | 10.69 | 10.31 | 0.38 | 3.69% |
| 9 | Siddhartha Equity Fund | SEF | 9.77 | 9.43 | 0.34 | 3.61% |
| 10 | Global IME Balance Fund-I | GIBF1 | 10.35 | 9.99 | 0.36 | 3.60% |
| 11 | Prabhu Select Fund | PSF | 11.00 | 10.62 | 0.38 | 3.58% |
| 12 | Sanima Large Cap Fund | SLCF | 9.96 | 9.62 | 0.34 | 3.53% |
| 13 | Nabil Balanced Fund III | NBF3 | 9.28 | 8.97 | 0.31 | 3.46% |
| 14 | NIBL Samriddhi Fund - 2 | NIBSF2 | 9.36 | 9.05 | 0.31 | 3.43% |
| 15 | Kumari Equity Fund | KEF | 10.42 | 10.08 | 0.34 | 3.37% |
| 16 | Kumari Sunaulo Lagani Yojana | KSLY | 11.20 | 10.84 | 0.36 | 3.32% |
| 17 | Nabil Flexi Cap Fund | NFCF | 10.18 | 9.86 | 0.32 | 3.25% |
| 18 | Sanima Equity Fund | SAEF | 11.11 | 10.78 | 0.33 | 3.06% |
| 19 | Siddhartha Systematic Investment Scheme | SSIS | 9.25 | 8.98 | 0.27 | 3.01% |
| 20 | Citizens Mutual Fund-1 | CMF1 | 10.32 | 10.02 | 0.3 | 2.99% |
| 22 | Prabhu Smart Fund | PRSF | 10.91 | 10.60 | 0.31 | 2.92% |
| 23 | Mega Mutual Fund - 1 | MMF1 | 8.81 | 8.56 | 0.25 | 2.92% |
| 24 | NIC Asia Growth Fund | NICGF | 11.00 | 10.69 | 0.31 | 2.90% |
| 25 | RBB Mutual Fund 2 | RMF2 | 10.72 | 10.42 | 0.3 | 2.88% |
| 26 | Kumari Dhanabriddhi Yojana | KDBY | 10.93 | 10.63 | 0.3 | 2.82% |
| 27 | Nabil Balanced Fund - 2 | NBF2 | 10.21 | 9.93 | 0.28 | 2.82% |
| 28 | RBB Mutual Fund 1 | RMF1 | 10.00 | 9.73 | 0.27 | 2.77% |
| 29 | Sunrise Focused Equity Fund | SFEF | 10.09 | 9.82 | 0.27 | 2.75% |
| 30 | NIBL Growth Fund | NIBLGF | 10.28 | 10.02 | 0.26 | 2.59% |
| 31 | NIC ASIA Balanced Fund | NICBF | 10.61 | 10.35 | 0.26 | 2.51% |
| 32 | Sunrise First Mutual Fund | SFMF | 11.27 | 11.00 | 0.27 | 2.45% |
| 33 | Laxmi Value Fund-II | LVF2 | 10.28 | 10.04 | 0.24 | 2.39% |
| 34 | Sanima Growth Fund | SAGF | 10.94 | 10.69 | 0.25 | 2.34% |
| 35 | Laxmi Unnati Kosh | LUK | 10.31 | 10.08 | 0.23 | 2.28% |
| 36 | NIBL Sahabhagita Fund | NIBLSF | 10.27 | 10.05 | 0.22 | 2.19% |
| 37 | Himalayan 80-20 | H8020 | 10.67 | 10.46 | 0.21 | 2.01% |
| 38 | NIC Asia Flexi Cap Fund | NICFC | 10.84 | 10.63 | 0.21 | 1.98% |
| 39 | Citizens Super 30 Mutual Fund | C30MF | 10.66 | 10.46 | 0.2 | 1.91% |
| 40 | Kumari Sabal Yojana | KSY | 10.04 | 9.90 | 0.14 | 1.41% |
| 41 | NIC Asia Select-30 | NICSF | 10.99 | 10.85 | 0.14 | 1.29% |
| 42 | NIC Asia Dynamic Debt Fund | NADDF | 10.86 | 10.73 | 0.13 | 1.21% |
| 43 | NIBL Stable Fund | NIBLSTF | 10.05 | 9.96 | 0.09 | 0.90% |
| 44 | NIC Asia Growth Fund 2 | NICGF2 | 9.75 | 9.69 | 0.06 | 0.62% |
All the data are generated from SSpro Software. To learn more about the software, click on the link below
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, the appropriateness of the information, and seek independent financial advice. The information about the company has been taken from 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.
