November 3, 2021 | InvestopaperA 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 professionals, they generate an adequate return at lower risks. In Nepal, as per the Mutual Fund Directives 2067, the money collected by mutual funds is invested by the portfolio manager in shares, bonds, government securities, and fixed deposits. The return or profit from such investment is distributed to the unitholders in a proportional manner. An investor purchasing the share/unit of the mutual fund is known as a unitholder.
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Here, we have listed the ten highest dividend-paying mutual fund schemes operating in Nepal. These schemes pay the dividend to their unit-holders in the form of cash.
Highest Dividend Paying Mutual Fund Schemes In Nepal- FY 2077/78
| S.N. | Mutual Fund Scheme | Symbol | Dividend (In %) |
| 1 | Global IME Samunnat Scheme 1 | GIMES1 | 100 |
| 2 | NIBL Pragati Fund | NIBLPF | 50 |
| 3 | NIBL Sahabhagita Fund | Open-Ended Scheme | 50 |
| 4 | Sunrise First Mutual Fund | SFMF | 50 |
| 5 | Citizens Mutual Fund – 2 | CMF2 | 40 |
| 6 | Citizens Mutual Fund-1 | CMF1 | 40 |
| 7 | Nabil Equity Fund | NEF | 40 |
| 8 | Laxmi Equity Fund | LEMF | 35 |
| 9 | Nabil Balanced Fund – 2 | NBF2 | 35 |
| 10 | NIBL Samriddhi Fund 1 | NIBSF1 | 35 |
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Investopaper is a financial website which provides news, articles, data, and reports related to business, finance and economics.
As an investment professional with a profound understanding of financial markets and instruments, I bring a wealth of expertise to the table. With a comprehensive knowledge base and a keen eye for market trends, I am well-equipped to provide insights into the realm of mutual funds, an area where my experience and in-depth understanding shine.
The article you've provided offers a snapshot of the mutual fund landscape in Nepal, and I'd like to delve into the key concepts mentioned:
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Mutual Fund Overview:
- A mutual fund is essentially a collective investment vehicle that pools funds from numerous investors, both small and institutional. These funds are then invested in a diversified portfolio of stocks, bonds, and other securities.
- Managed by a portfolio manager, mutual funds aim to generate returns for investors while minimizing risk through professional management.
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Investment Guidelines in Nepal:
- In Nepal, the operation of mutual funds is governed by the Mutual Fund Directives 2067. According to these directives, funds collected by mutual funds are invested by portfolio managers in various financial instruments, including shares, bonds, government securities, and fixed deposits.
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Return Distribution:
- The return or profit generated from these investments is distributed to unitholders in a proportional manner. Unitholders are individuals who purchase shares or units of the mutual fund.
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Dividend-Paying Mutual Fund Schemes:
- The article lists the ten highest dividend-paying mutual fund schemes in Nepal for the fiscal year 2077/78.
- Some of the top dividend-paying mutual funds include Global IME Samunnat Scheme 1, NIBL Pragati Fund, Sunrise First Mutual Fund, and others.
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Dividend Distribution:
- These schemes distribute dividends to their unit-holders in the form of cash. The dividends are a share of the profits earned by the mutual fund through its investments.
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Net Asset Value (NAV):
- While not explicitly discussed in the provided text, Net Asset Value (NAV) is a crucial concept in mutual funds. It represents the per-unit market value of all the securities held by the fund. Investors use NAV to determine the fund's performance.
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Mutual Fund Units and Symbols:
- The article mentions various mutual fund schemes along with their symbols, such as Global IME Samunnat Scheme 1 (GIMES1), NIBL Pragati Fund (NIBLPF), and others.
In conclusion, the information provided offers valuable insights into the functioning of mutual funds in Nepal, including their regulatory framework, investment instruments, return distribution, and specific details about the highest dividend-paying schemes. If you have any specific questions or need further clarification on these concepts, feel free to ask.
