Unlocking the Insights: Captivating Monthly Analysis of Mutual Fund as of Jestha End
Sun, Jul 2, 2023 1:04 PM on Mutual Fund, Stock Market, SS Pro, Exclusive,
There are currently 33 closed-end mutual funds listed on Nepal Stock Exchange, whereas 7 open-end schemes are traded directly in the respective fund manager. Citizens Super 30 Mutual Fund (30CSMF), and Siddhartha Investment Growth Scheme 3 (SIGS3) have issued their units to the general public but are yet to be listed for trading in NEPSE, upon which there will be 42 schemes altogether.
Click here for a detailed list of Mutual funds.
In the dynamic world of investments, the mutual funds showcased their prowess in Jestha with a significant increase in their investment in listed/unlisted companies. Their investment soared to an impressive Rs. 24.54 Arba, outshining the previous month's figure of Rs. 20.46 Arba in Baisakh.
While diversifying their holdings, mutual funds also displayed astute financial management by maintaining a steady bank balance. Jestha witnessed a slight decrease from Rs. 8.86 Arba in Baisakh to Rs. 8.82 Arba, indicating a cautious approach to maintaining liquidity while actively engaging in market opportunities.
Moreover, demonstrating their confidence in fixed-income securities, mutual funds judiciously invested Rs. 3.56 Arba in debentures and bonds, showcasing their prudence in seeking stable returns. Not stopping there, mutual funds exhibited their appetite for growth by delving into the realm of primary shares/Rights. An investment amounting to Rs. 1.55 Arba, equivalent to 3.59% of their portfolio, reflects their eagerness to tap into promising prospects and ride the wave of potential future gains.
This captivating snapshot of mutual fund activities in Jestha highlights their prowess in capitalizing on opportunities while balancing risk and returns, solidifying their position as key players in the ever-evolving investment landscape.
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. 7.34 Arba, making up 29.9% of total investment. Likewise, they have an investment of Rs. 3.28 Arba in shares of the Non-Life Insurance sector, accounting for 13.38% of the total investment. The Microfinance sector stands at the third-highest investment priority for mutual funds with an investment worth Rs. 2.98 Arba, contributing 12.16% 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, NIC Asia Bank Limited (NICA) is seen as the top priority for investment by mutual funds. It accounts for an investment worth Rs. 1.11 Arba. Sanima Bank Limited (SANIMA) stands in the second position with an investment of Rs. 69.5 crores. Prabhu Bank Limited (PRVU) stands in the third position with an investment of Rs. 47.25 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. 55.14 crores. Muktinath Bikas Bank Limited (MNBBL) is seen in the second position with an investment worth Rs. 49.71 crores. Shine Resunga Development Bank Limited (SHINE) has an investment of Rs. 26.62 crores in the third position.
Finance:
As for the finance companies, the top two investments were Manjushree Finance Limited (MFIL) and ICFC Finance Limited (ICFC). Mutual funds invested Rs. 9.17 Crores in MFIL, and Rs. 3.88 Crores in ICFC.
Hotels and Tourism:
Among the five listed hotels and the tourism sector in NEPSE, mutual funds have given higher priority to Chandragiri Hills Limited (CGH) with an investment of Rs. 3.56 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. 29.35 crores, Chilime Hydropower Company Limited (CHCL) with an investment of Rs. 22.56 crores, and Arun Kabeli Power Limited (AKPL) with an investment of Rs. 14.9 crores.
Life Insurance Companies:
Among the life insurance companies in Nepal, National Life Insurance Company Limited (NLICL), Life Insurance Corporation Limited (LICN), and Nepal Life Insurance Company Limited (NLIC) are the investment companies of top priority for mutual funds. Mutual Fund schemes have around Rs. 82.16 crore in investments in NLICL, Rs. 51.41 crore in investments in LICN, and Rs. 44.82 crore in NLIC.
Manufacturing and Products:
Mutual Funds have invested Rs. 30.12 crores in Himalayan Distillery Limited (HDL), Rs. 27.71 crores in Shivam Cements Limited (SHIVM), and Rs. 11.27 crore in Unilever Nepal Limited (UNL) as of Jestha, 2080.
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. 68.27 crore in CBBL, Rs. 33.04 crore in SKBBL, and Rs. 31.77 crore in NUBL.
Mutual Fund:
The mutual fund schemes also invest in other mutual funds. Sunrise Focused Equity Fund (SFEF) falls under the highest investment value mutual fund. It has an investment of Rs. 19.5 crores. NIBL Growth Fund (NIBLGF) has the second-highest equity fund with a value of Rs. 15.34 crores. Finally, Prabhu Smart Fund (PRSF) stood third-highest investment of Rs. 13.4 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. 79.99 crore investments in NIL, Rs. 67.78 crore in SPIL, and Rs. 44.77 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. 28.42 crores in Nepal Reinsurance Company Limited (NRIC), and Rs. 26.70 crores in Nepal Doorsanchar Company Limited (NTC).
Investment:
As for the Investment sector, Citizen Investment Trust (CIT) has the highest investment worth Rs. 31.61 crores. Similarly, CEDB Hydropower Development Company Limited (CHDC) stands in the second position with an investment of Rs. 8.82 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 in accordance with the change in their asset and liabilities.
In the month of Jestha, 2080, Global IME Balance Fund-I (GIBF1) NAV gained the highest by 11.22% followed by NMB50 which has fallen by 10.46%.
| S.No. | Mutual Fund | Symbol | NAV as of Jestha | NAV as of Baisakh | Price Change | % Change |
|---|---|---|---|---|---|---|
| 1 | Global IME Balance Fund-I | GIBF1 | 10.11 | 9.09 | 1.02 | 11.22% |
| 2 | NMB 50 | NMB50 | 11.83 | 10.71 | 1.12 | 10.46% |
| 3 | Siddhartha Investment Growth Scheme-2 | SIGS2 | 10.38 | 9.45 | 0.93 | 9.84% |
| 4 | Siddhartha Equity Fund | SEF | 10.23 | 9.37 | 0.86 | 9.18% |
| 5 | NMB Sulav Investment Fund - II | NSIF2 | 10.92 | 10.02 | 0.9 | 8.98% |
| 6 | Laxmi Equity Fund | LEMF | 10.56 | 9.72 | 0.84 | 8.64% |
| 7 | Nabil Balanced Fund - 2 | NBF2 | 10.24 | 9.44 | 0.8 | 8.47% |
| 8 | Siddhartha Systematic Investment Scheme | SSIS | 8.72 | 8.04 | 0.68 | 8.46% |
| 9 | Nabil Equity Fund | NEF | 10.37 | 9.57 | 0.8 | 8.36% |
| 10 | NIBL Pragati Fund | NIBLPF | 10.28 | 9.50 | 0.78 | 8.21% |
| 11 | Sanima Equity Fund | SAEF | 12.8 | 11.86 | 0.94 | 7.93% |
| 12 | Citizens Mutual Fund - 2 | CMF2 | 10.05 | 9.32 | 0.73 | 7.83% |
| 13 | Sanima Large Cap Fund | SLCF | 9.56 | 8.87 | 0.69 | 7.78% |
| 14 | Nabil Balanced Fund III | NBF3 | 8.79 | 8.16 | 0.63 | 7.72% |
| 15 | Sunrise Bluechip Fund | SBCF | 9.63 | 8.95 | 0.68 | 7.60% |
| 16 | Shubha Laxmi Kosh | SLK | 9.96 | 9.26 | 0.7 | 7.56% |
| 17 | Laxmi Unnati Kosh | LUK | 10.69 | 9.98 | 0.71 | 7.11% |
| 18 | Kumari Equity Fund | KEF | 10.72 | 10.01 | 0.71 | 7.09% |
| 19 | Citizens Mutual Fund-1 | CMF1 | 9.39 | 8.78 | 0.61 | 6.95% |
| 20 | NIBL Samriddhi Fund - 2 | NIBSF2 | 9 | 8.42 | 0.58 | 6.89% |
| 21 | NIC Asia Growth Fund | NICGF | 11.61 | 10.87 | 0.74 | 6.81% |
| 22 | Mega Mutual Fund - 1 | MMF1 | 8.63 | 8.08 | 0.55 | 6.81% |
| 23 | NMB Saral Bachat Fund - E | NMBSBF | 9.25 | 8.68 | 0.57 | 6.57% |
| 24 | RBB Mutual Fund 1 | RMF1 | 9.39 | 8.82 | 0.57 | 6.46% |
| 25 | Sunrise First Mutual Fund | SFMF | 12.53 | 11.77 | 0.76 | 6.46% |
| 26 | Kumari Sunaulo Lagani Yojana | KSLY | 10.43 | 9.83 | 0.6 | 6.10% |
| 27 | Kumari Dhanabriddhi Yojana | KDBY | 10.85 | 10.23 | 0.62 | 6.06% |
| 28 | NIC Asia Flexi Cap Fund | NICFC | 10.37 | 9.84 | 0.53 | 5.39% |
| 29 | Nabil Flexi Cap Fund | NFCF | 9.87 | 9.37 | 0.5 | 5.34% |
| 30 | Prabhu Select Fund | PSF | 10.71 | 10.17 | 0.54 | 5.31% |
| 31 | NIC ASIA Balanced Fund | NICBF | 10.96 | 10.42 | 0.54 | 5.18% |
| 32 | NMB Hybrid Fund L- 1 | NMBHF1 | 11.44 | 10.91 | 0.53 | 4.86% |
| 33 | NIBL Sahabhagita Fund | NIBLSF | 10.45 | 9.97 | 0.48 | 4.81% |
| 34 | NIC Asia Select-30 | NICSF | 10.43 | 9.97 | 0.46 | 4.61% |
| 35 | Prabhu Smart Fund | PSMF | 10.43 | 10.00 | 0.43 | 4.30% |
| 36 | NIC Asia Dynamic Debt Fund | NADDF | 10.83 | 10.44 | 0.39 | 3.74% |
| 37 | NIBL Growth Fund | NIBLGF | 10.03 | 9.74 | 0.29 | 2.98% |
| 38 | Sanima Growth Fund | SGF | 10.09 | 9.84 | 0.25 | 2.54% |
| 39 | Siddhartha Investment Growth Scheme 3 | SIGS3 | 10.15 | 9.95 | 0.2 | 2.01% |
| 40 | Sunrise Focused Equity Fund | SFEF | 10.05 | 9.88 | 0.17 | 1.72% |
| 41 | Citizens Super 30 Mutual Fund | 30CSMF | 10.08 | 9.94 | 0.14 | 1.41% |
| 42 | RBB Mutual Fund 2 | RMF2 | 10.03 | 0 | 0 | 0.00% |
Change in NEPSE and Mutual Fund Index
In the span of Baisakh to Jestha, the NEPSE Index witnessed a significant increase from 1821.64 to 2042.07. This corresponds to a change of 220.43 points or a 12% rise. The NEPSE Index serves as a key indicator of the overall performance of the Nepalese stock market, and this substantial growth indicates positive market sentiment during this period.
Similarly, the Mutual Fund Index also experienced a notable increase, starting at 13.48 and reaching 14.8 by the end of Jestha. This change represents a gain of 1.32 points or a 10% increase. The Mutual Fund Index reflects the performance of mutual funds, which are investment vehicles that pool money from various investors to invest in a diversified portfolio of securities.
| S. No. | Index | Baisakh End | Jestha End | Change | Change % |
|---|---|---|---|---|---|
| 1 | NEPSE Index | 1821.64 | 2042.07 | 220.43 | 12% |
| 2 | Mutual Fund Index | 13.48 | 14.8 | 1.32 | 10% |
Both the NEPSE Index and the Mutual Fund Index demonstrated positive momentum, highlighting a favorable market environment and potential investment opportunities. However, it's important to note that these indices represent the collective performance of multiple stocks or mutual funds and may not reflect the performance of individual securities. Therefore, it's essential to conduct detailed research and analysis before making any investment decisions based on these indices.
Monthly Index Outlook
(Note: This data is based on the performance of mutual funds since 2019)
The Mutual Fund has exhibited a notable trend in its performance over the past few years. In January, it consistently closed higher, recording a 100% success rate in terms of surpassing its opening price. This suggests that January has been a favorable month for the Mutual Fund, with investors experiencing positive returns.
Moreover, July stands out as the month where the Mutual Fund achieved the highest average gain, reaching 8.45%. This implies that, historically, July has been particularly profitable for investors in this fund. It could be attributed to various factors such as market conditions, economic trends, or specific investment strategies employed by the fund manager during this month.
However, it's important to note that while historical data can provide valuable insights, it should not be solely relied upon for making investment decisions. The financial markets are subject to numerous unpredictable factors, and past performance does not guarantee future success. Therefore, it is prudent to conduct a thorough analysis, consider current market conditions, and assess the fund's overall investment strategy and risk profile before making any investment decisions.
| Month | % of months in which the price closed higher than it opened | Average Gain/Loss (%) |
|---|---|---|
| Jan | 100 | 6.73 |
| Feb | 50 | 3.04 |
| Mar | 50 | -3.51 |
| Apr | 0 | -0.23 |
| May | 60 | 1.82 |
| Jun | 40 | 0.95 |
| Jul | 100 | 8.45 |
| Aug | 25 | -3.81 |
| Sep | 25 | -4.28 |
| Oct | 50 | 0.5 |
| Nov | 25 | 1.01 |
| Dec | 50 | 0.13 |
All the data are generated from SSpro Software. To know 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.
