Citizens Capital to Launch its First Open Ended Scheme ‘Citizens Sadabahar Yojana’
October 1, 2024 | Investopaper
Citizens Capital Limited is planning to launch an open ended scheme named “Citizens Sadabahar Yojana”. The fund manager is going to issue 5 crore units of its new mutual fund scheme. At a par value of Rs 10 per unit, the total issue size amounts to Rs 50 crores. The scheme will be operated under ‘Citizens Mutual Fund’.
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For this purpose, as the fund manager, Citizens Capital has submitted the application to the Securities Board Of Nepal (SEBON) on Ashwin 2, 2081 BS seeking approval. Only after the permission from the board, the company can sell the units to the general public.
Citizens Bank is the promoter company of the Citizens Mutual Fund. Hence, the bank along with the fund manager Citizens Capital will purchase 15 percent or 75 lakh units of the scheme. The general public can apply for the remaining 4.25 crore units worth Rs 42.5 crores.
‘Citizens Sadabahar Yojana’ is an open ended scheme. In an open-ended mutual fund, interested investors can purchase or sell the shares in the fund directly from the fund. There is no need to purchase from existing shareholders.
Investing in a mutual fund can be a good strategy for most investors as it offers decent returns at a low level of risk. Mutual funds are managed by professional experts and provide wide diversification.
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