April 4, 2023 | Investopaper
Nabil Investment Banking Limited is planning to launch an open ended scheme named “NI 31”. The fund manager is going to issue 1.5 crore units of its new mutual fund scheme. At a par value of Rs 10 per unit, the total issue size amounts to Rs 15 crores. The scheme will be operated under ‘Nabil Mutual Fund’.
For this purpose, as the fund manager, Nabil Investment Banking had submitted the application to the Securities Board Of Nepal (SEBON) on Chaitra 16, 2079 BS seeking approval. Only after the permission from the board, the company can sell the units to the general public.
Nabil Bank is the promoter company of the Nabil Mutual Fund. Hence, the bank will purchase 15 percent or 22.5 lakh units of the scheme. The general public can apply for the remaining 1.275 crore units worth Rs 12.75 crores.
‘NI 31’ 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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