Mutual Fund is a pool of fund generally of several small and big investors. The collected fund is then invested in financial instruments such as Stocks, Bond/Debentures, Govt. Securities, and Fixed Deposits (as prescribed by Mutual Fund Regulation, 2067). Such investment decisions are made by a Fund Manager and supervise by the fund supervisors. Returns from the investment are shared proportionately among the investors on the basis of the units held by them. The fund managers are the one with high abilities who make decisions thoroughly before pouring the funds of public. They do a lot of research on fundamental and technical factors of the company, they are interested to buy. Thus, for the layman investors and giant investors, it would be best to see the portfolios of mutual funds before investment.
Mutual Fund in Nepal is regulated by Securities Exchange Board of Nepal. Mutual Fund in Nepal can be issued, supervised and managed only by entities/individuals fulfilling the criteria led in Mutual Fund Regulation, 2067 and as authorized by SEBON.
Currently, there are 11 mutual funds scheme listed in Nepal with Rs 9.75 arba as their total initial fund. All of these mutual funds are closed-end, which means they require broker to buy and sell (unlike open ended that can be purchased directly through the fund provider).
Till the end of Kartik, 2074, total Investment of Rs 6.96 arba in listed stock by the mutual funds shows the attraction towards the stocks rather than fixed deposits, debentures, bonds, etc. Below table shows the amount of investment in various sectors and company in which mutual funds have made higher investment categorized on the basis of sectors.
From the above, around 36.22% of the total investment, i.e. of Rs 2.52 arba is invested in Commercial Bank, followed by Insurance sector of Rs 2.07 arba (29.79%). Everest Bank Limited (EBL) of Rs 31.78 crore among Commercial Banks, Nepal Life Insurance Company Limited (NLIC) of Rs 25.86 crore among Insurance, Sana Kisan Bikas Bank Limited (SKBBL) of Rs 21.69 crore among Microfinance, Mukitnath Bikas Bank Limited of Rs 9.69 crore among Development Banks, Chilime Hydropower Company Limited (CHCL) of Rs 14.31 crore among Hydropower, Nepal Telecom (NTC) of Rs 19.62 crore among others, Citizen Investment Trust (CIT) of Rs 11.92 crore among Finance companies, Oriental Hotel Limited (OHL) of Rs 4.59 crore among Hotels and NMB Sulav Investment Fund – 1 (NMBSF1) of Rs 3.96 crore among mutual funds are the highly hold stock by mutual funds of each sector.
Investments made in Commercial Banks:
Investment made in Development Banks:
Investment made in Finance:
Investment made in Microfinance:
Investment made in Insurance:
Investment made in Hydropower:
Investment made in Hotels:
Investment made in Mutual Funds:
Investment made in Others:
