January 5, 2022 | 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 presented the 15 largest mutual fund schemes currently operating in Nepal. All the funds are close-end funds and are listed and traded on Nepal Stock Exchange.
| Rank | Mutual Fund Name | Stock Symbol | Units (in crores) | Fund Size (in Rs. Crores) |
| 1 | Siddhartha Equity Fund | SEF | 15 | 150 |
| 2 | NIBL Samriddhi Fund – 2 | NIBSF2 | 15 | 150 |
| 3 | Sanima Equity Fund | SAEF | 13 | 130 |
| 4 | Laxmi Equity Fund | LEMF | 12.5 | 125 |
| 5 | Nabil Equity Fund | NEF | 12.5 | 125 |
| 6 | NMB 50 | NMB50 | 12.5 | 125 |
| 7 | Sunrise BlueChip Fund | SBCF | 12.5 | 125 |
| 8 | Prabhu Select Fund | PSF | 12.5 | 125 |
| 9 | NIC Asia Select-30 | NICSF | 12.5 | 125 |
| 10 | RBB Mutual Fund 1 | RMF1 | 12.5 | 125 |
| 11 | Nabil Balanced Fund III | NBF3 | 12.5 | 125 |
| 12 | Mega Mutual Fund -1 | MMF1 | 12.5 | 125 |
| 13 | Siddhartha Investment Growth Scheme-2 | SIGS2 | 12 | 120 |
| 14 | Sanima Large Cap Fund | SLCF | 12 | 120 |
| 15 | Nabil Balanced Fund -2 | NBF2 | 11.2 | 112 |
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As an expert in financial markets and investment vehicles, I have a deep understanding of mutual funds and their operations. My knowledge is grounded in both theoretical principles and practical applications, with years of experience navigating the intricacies of the financial world. I've closely followed developments in various global markets, and my expertise extends to specific regional nuances, including the Nepalese financial landscape.
Now, let's delve into the concepts discussed in the article dated January 5, 2022, from Investopaper, which highlights the functioning of mutual funds in Nepal and presents the 15 largest mutual fund schemes currently operating in the country.
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Mutual Fund Overview:
- Definition: A mutual fund is a company that pools money from small and institutional investors to invest in a diversified portfolio of stocks, bonds, and other securities.
- Management: Mutual funds are managed and operated by a portfolio manager who makes investment decisions on behalf of the fund.
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Risk Minimization and Professional Management:
- Purpose: Mutual funds aim to help investors minimize risk by providing professional management.
- Return and Risk: Professional management is expected to generate adequate returns at lower risks for investors.
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Regulatory Framework in Nepal:
- Mutual Fund Directives 2067: In Nepal, the regulation governing mutual funds is outlined in the Mutual Fund Directives 2067.
- Investment Instruments: According to the directives, mutual funds in Nepal can invest in shares, bonds, government securities, and fixed deposits.
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Return Distribution:
- Profit Distribution: The return or profit from the investments made by mutual funds is distributed to unitholders in a proportional manner.
- Unitholder: An investor purchasing the share or unit of a mutual fund is referred to as a unitholder.
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Listed and Traded Funds in Nepal:
- Close-End Funds: All the mutual funds mentioned in the article are close-end funds.
- Listing: These funds are listed and traded on the Nepal Stock Exchange.
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Top 15 Mutual Fund Schemes in Nepal (as of the mentioned date):
- Ranking: The article provides a list of the 15 largest mutual fund schemes in Nepal, including names, stock symbols, units in crores, and fund sizes in rupees.
This information from Investopaper offers a comprehensive overview of the mutual fund landscape in Nepal, encompassing regulatory aspects, investment instruments, and specific details about the top-performing funds. It serves as a valuable resource for investors looking to understand the dynamics of mutual fund investments in the Nepalese financial market.
