How To Buy Mutual Fund Schemes In Nepal?
November 22, 2020 | Investopaper
A mutual fund is a company that pools money from many small as well as institutional investors and invests in stocks, bonds and other investment securities. It is managed and operated by a portfolio manager. Mutual Funds help the general investors to minimize the risk in investment. As the funds are managed by the professionals, they generate adequate return at lower risks.
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How To Buy Mutual Fund Schemes In Nepal
Investors preferring to earn decent return from the stock market but have neither the time or knowledge to operate in the market can put the money in the mutual fund. There are many investors in Nepal who want to invest in the stock market. However, they do not possess the required skills or are busy in different occupation. If you are such an investor, you may be wondering how you could buy mutual fund schemes in Nepal. There are mainly three ways you can buy the schemes:
- Purchase From Secondary Market (Nepal Stock Exchange)
- Purchase Open-Ended Scheme Directly From Fund Manager
- Purchase Upcoming Mutual Fund Schemes At Public Offering
Let us explain them in detail.
Mutual Fund Schemes You Can Buy From Nepal Stock Exchange
At current, there are 19 mutual fund schemes listed and traded in Nepal Stock Exchange (NEPSE). You can purchase the shares of those mutual fund schemes just like purchasing the shares of any other companies- through stock brokers. However, if you are true beginner in the share market, please read the following articles:
Basic Requirements To Start Trading In The Stock Market Of Nepal
List of Licensed Stock Brokers In Nepal With TMS URL
After you have met all the necessary requirements for trading in Nepal Stock Exchange, you can contact your broker and purchase any of the mutual fund schemes available. The table below shows the list of schemes trading in Nepal Stock Exchange.
| S.N | Mutual Funds | Stock Symbol | Total Listed Shares | Total Paid-Up Value (Rs) |
| 1 | Citizens Mutual Fund -1 | CMF1 | 82,000,000 | 820,000,000 |
| 2 | Citizens Mutual Fund-2 | CMF2 | 56,000,000 | 560,000,000 |
| 3 | Global IME Samunnat Scheme-1 | GIMES1 | 100,000,000 | 1,000,000,000 |
| 4 | Laxmi Equity Fund | LEMF | 125,000,000 | 1,250,000,000 |
| 5 | Laxmi Value Fund-1 | LVF1 | 50,000,000 | 500,000,000 |
| 6 | Laxmi Unnati Kosh | LUK | 65,262,360 | 652,623,600 |
| 7 | Nabil Balanced Fund-2 | NBF2 | 112,000,000 | 1,120,000,000 |
| 8 | Nabil Equity Fund | NEF | 125,000,000 | 1,250,000,000 |
| 9 | NIBL Pragati Fund | NIBLPF | 75,000,000 | 750,000,000 |
| 10 | NIBL Samriddhi Fund 1 | NIBSF1 | 75,000,000 | 750,000,000 |
| 11 | NIC Asia Balanced Fund | NICBF | 75,500,000 | 755,000,000 |
| 12 | NIC Asia Growth Fund | NICGF | 83,520,000 | 835,200,000 |
| 13 | NMB 50 | NMB50 | 125,000,000 | 1,250,000,000 |
| 14 | NMB Hybrid Fund L-1 | NMBHF1 | 100,000,000 | 1,000,000,000 |
| 15 | Sanima Equity Fund | SAEF | 130,000,000 | 1,300,000,000 |
| 16 | Siddhartha Equity Fund | SEF | 150,000,000 | 1,500,000,000 |
| 17 | Siddhartha Equity Orineted Scheme | SEOS | 100,000,000 | 1,000,000,000 |
| 18 | Siddhartha Investment Growth Scheme – 2 | SIGS2 | 120,000,000 | 1,200,000,000 |
| 19 | Sunrise First Mutual Fund | SFMF | 860,000,000 | 8,600,000,000 |
Note: All these above schemes are close-ended scheme.
Purchasing Open-ended Scheme Directly From The Fund Manager
You can also purchase open-ended mutual fund schemes. These schemes are not traded in the stock exchange. One can directly purchase or sell shares of such schemes from or to the fund manager. The purchase/sale price is based on the Net Asset Value (NAV) of the scheme. Net Asset Value (NAV) indicates the underlying value of the mutual fund. It shows how much each investor would receive if the mutual fund portfolio was to be liquidated and all liabilities were paid off.
In Nepal, NIBL Ace Capital Limited is operating Nepal’s first open-ended mutual fund scheme which is known as ‘NIBL Sahabhagita Fund’. You can contact NIBL Ace Capital for purchasing units in this scheme.
Siddhartha Capital is in the process of bringing an open ended scheme called ‘Siddhartha Systematic Investment Scheme’. It has yet to issue the shares to the public.
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Upcoming Mutual Fund Schemes In Nepal
If you do not want to purchase from the stock exchange or currently available open-ended scheme, you can wait for new mutual fund schemes that will come in the form of public offering. The fund manager will issue new schemes to the pubic at a price of Rs 10 per unit. This is just like the IPO for the mutual funds.
Here are some of the mutual fund schemes that are likely to come in the near future.
| S.N | Name of Scheme | No. of Units | Amount of Issue | Fund Manager |
| 1 | Sanima Large Cap Fund (Close Ended Scheme) | 100,000,000 | 1,000,000,000 | Sanima Capital Limited |
| 2 | Kumari Equity Fund | 80000000 | 800000000 | Kumari Capital Limited |
| 3 | NIC Asia Select-30 | 100,000,000 | 1,000,000,000 | NIC Asia Capital Limited |
| 4 | Siddhartha Systematic Investment Scheme (Open End) | 20000000 | 200000000 | Siddhartha Capital Ltd. |
| 5 | NIC Asia Dynamic Debt Mutual Fund | 50,000,000 | 500,000,000 | NIC Asia Capital Limited |
To view the updated list of upcoming mutual funds schemes, Click Here.
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