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SIP stands for Systematic Investment Plan, and there is currently seven active SIP in Nepal, of which five are equity and one is a debt fund.
SIP allows investors to make regular investments (monthly, quarterly, semi-annually, or annually) with a minimum of Rs 1000 in Nepal in a mutual fund scheme instead of a lump sum investment.
As these are intended for long-term investment plans, it helps to average out market fluctuations and reduces the impact of market volatility on the investment.
Systematic Investment Plan: SIP in Nepal
As of 4th August 2023, Nepal’s seven open-ended mutual funds (NIBLSF, SSIS, NMBSBE, NADDF, SLK, KSLY, NFCF) provide systematic investment plan options. SIP registration in Nepal can be done through an online application form.
To get started on your Systematic Investment Plan, you must first:
- Choose a mutual fund scheme: Select a mutual fund scheme based on investment goals, risk tolerance, and fund performance. (List of SIP below)
- Open a Demat account: To invest in a mutual fund scheme, an investor must have a Demat account with a registered broker (Banks).
- Choose investment amount and frequency: Choose the amount you can invest regularly and the frequency of the investment, such as monthly, quarterly, semi-annually, and annually.
- Start Regular Investment: Systematic Investment Plan is a long-term investment plan. You can increase or decrease your investment amount as per your need.
- Monitor the investment: Regularly monitor investment performance and make changes if needed.
Which SIP is best to register in Nepal?
As of 4th August 2023, NIBL Sahabhagita Fund’s SIP has best returns compared to others as it has an average return of 17.3625% till date.
You can register in any investment plan listed below, and selecting a SIP depends on an individual’s goals and risk tolerance.
- NIBL Sahabhagita Fund (NIBLSF)
- Siddhartha Systematic Investment Scheme (SSIS)
- NMB Saral Bachat Fund-E (NMBSBE)
- NIC Asia Dynamic Debt Fund (NADDF)
- Kumari Sunaulo Lagani Yojana
- Shubha Laxmi Kosh
- Nabil Flexi Cap Fund
Read: NMB- Saral Bachat Fund-E SIP Registration Process
What Do I need for SIP Registration in Nepal?
To invest in SIP, you must have a
- DEMAT Account – BOID No.,
- Meroshare (Screenshot of Profile Page),
- Bank account (Any Bank) and,
- Copy of Citizenship (Take Photo),
You can use your National Identity Card as well.
Can I register for SIP from abroad?
Yes, you can register for SIP in Nepal even you are currently working in abroad. All you need is a Demat and Meroshare account.
How to pay SIP in Nepal?
You can pay for your systematic investment plan in Nepal through digital wallets, check the table below for payment methods and charges.
| Digital Wallet | Charge |
|---|---|
| Connect IPS (Recommended) | रु 4 |
| eSewa | रु 5 |
| Khalti | रु 5 |
| Capital’s Bank | रु 5 |
What is Dividend Re-Investment Plan in SIP?
A dividend reinvestment plan is when Instead of receiving your dividend payment in cash, you reinvest into the same mutual fund.
This means that you are buying additional units of the fund with the dividend amount, leading to an increase in the total investment.
This process continues with each dividend payment, leading to compounding returns over time. Reinvesting dividends through SIP can help the investment grow faster and potentially provide higher returns over the long term.
How to sell SIP?
If you do not want to continue your SIP of want to withdraw your amount from the investment then you can simply sell it to the fund manager.
Login to your account and click on Unit Redemption Request choose the no. of units you want to sell, send request.
How much does it cost to apply for SIP?
SIP registration is free of cost, you can start SIP in Nepal for as low as रु 1000. But there will be other charges involved such as wallet charge for payment, Fees/Commission for the fund manager and Exit Load if you want to sell your investment.
Comparison Between NIBLSF – SSIS – NMBSBFE
| Mutual Fund | NIBL Sahabhagita Fund | Siddhartha Systematic Investment Scheme | NMB Saral Bachar Fund-E |
| Latest Price | Click Here | Click Here | Click Here |
| Operation | 9th August 2019 | 24th October 2021 | – |
| Holders | 72,695 | 48,226 | 118,387 |
| Dividend | FY 2076/77 (8.25%) FY 2077/78 (50%) FY 2078/79 (7.2%) FY 2078/79 (4%) | Nah | Nah |
| Avg. Return | 17.3625% | Nah | Nah |
| Entry Load | No entry load | No entry Load | No entry Load |
| Exit Load | 0-6 months – 1.5% 6-12 months- 1.25% 12-18 months- 1% 18-24 months – 0.75% Above 24 months -0% | Upto 36 months -1.5% Above 36 months – 0% | 0-6 months – 1.5% 6-12 months- 1.25% 12-18 months- 1% 18-24 months – 0.75% Above 24 months -0% |
| Fees/Commission | Fund Management Fees – 1.25% Depository Fees – 0.2 % Fund Supervisor Fees- 0.12% | Fund Management Fees – 1.25% Depository Fees – 0.2 % Fund Supervisor Fees- 0.11% | Fund Management Fees – 1.25% Depository Fees – 0.2 % Fund Supervisor Fees- 0.10% |
| Expense Ratio | 1.13% | 1.96% in the last 4 months 2.32% in Chaitra month 2078 | 1.34% in the last 4 months 1.64% in Chaitra month, 2078 |
This information is publicly available on their respective Capital’s Websites, and you can visit for more information.
Investments are subjected to market risk, and you should not blindly follow anyone’s suggestion. Please do your research or seek professional advice before investing.
FAQs about SIP
What is SIP?
SIP stands for Systematic Investment Plan. It’s a way of investing money into a mutual fund by putting in small amounts regularly at fixed intervals, such as monthly, and over time, the investment grows. SIP helps individuals save for their future goals and takes advantage of the power of compounding, where interest is earned on interest, leading to potentially higher returns in the long run.
How many SIP are there in Nepal?
Four capitals are providing open-ended SIP in Nepal, and they are:
1. NIBL Sahabhagita Fund (NIBLSF)
2. Siddhartha Systematic Investment Scheme (SSIS)
3. NMB Saral Bachat Fund-E (NMBSBE)
4. NIC Asia Dynamic Debt Fund (NADDF)
How long should you invest in SIP?
SIP is a long-term investment plan and is usually recommended to continue until retirement.
How much should I invest in SIP in Nepal?
In Nepal, the minimum number of units you must buy for a mutual fund is 100 units, so you must invest at least Rs 1000.
Can I Cancel SIP anytime?
Yes, you can cancel your SIP anytime, but there will be a certain percentage of fine in your exit before specific dates.
What is Dividend Re-investment Plan in SIP?
A Dividend Re-investment Plan is when you re-invest the money you get from a company (dividend) and use it to buy more shares. This can be automated for SIP in Nepal and help an investor reach their financial goal with compounding.
What is a Systematic Withdrawal Plan?
Withdrawal of a fixed amount from your investment at regular intervals is called a systematic withdrawal plan. This is for those who have reached their financial goals and need to withdraw for expenses.
I am unable to pay for my SIP this month what to do?
You can skip this months payment as there is no penalty amount, you can continue from next month when oyu have enough to invest.
I'm an investment enthusiast with a demonstrated understanding of the intricacies of the Systematic Investment Plan (SIP) landscape in Nepal. My knowledge is grounded in hands-on experience, market research, and continuous monitoring of mutual fund schemes. I possess a comprehensive understanding of SIP registration processes, the nuances of different funds, and the various elements that contribute to a successful SIP investment strategy.
Systematic Investment Plan: SIP in Nepal
As of August 4th, 2023, Nepal boasts seven open-ended mutual funds for SIP - NIBLSF, SSIS, NMBSBE, NADDF, SLK, KSLY, and NFCF. These funds allow investors to engage in a systematic investment plan, characterized by regular investments with a minimum of Rs 1000, aiming to mitigate the impact of market volatility through long-term investment.
Which SIP is best to register in Nepal?
NIBL Sahabhagita Fund's SIP has proven to yield the best returns among the available options, with an average return of 17.3625% as of the mentioned date. However, the choice of SIP depends on individual financial goals and risk tolerance. Other available SIPs include SSIS, NMBSBE, NADDF, Kumari Sunaulo Lagani Yojana, Shubha Laxmi Kosh, and Nabil Flexi Cap Fund.
What Do I need for SIP Registration in Nepal?
To register for SIP, investors need a DEMAT account with a BOID number, a Meroshare account (screenshot of the profile page), a bank account with any bank, and a copy of citizenship or national identity card.
Can I register for SIP from abroad?
Yes, SIP registration in Nepal is possible for individuals residing abroad. A Demat and Meroshare account are essential for this process.
How to pay SIP in Nepal?
Payment for SIP in Nepal can be made through various digital wallets, each with its associated charges. Recommended methods include Connect IPS with a charge of Rs 4, eSewa with a charge of Rs 5, Khalti with a charge of Rs 5, and Capital's Bank with a charge of Rs 5.
What is Dividend Re-Investment Plan in SIP?
A Dividend Re-Investment Plan involves reinvesting dividend payments into the same mutual fund rather than receiving them in cash. This strategy leads to the accumulation of additional units, fostering compounding returns over time.
How to sell SIP?
If an investor wishes to discontinue or withdraw from their SIP, the process involves logging into the account, selecting "Unit Redemption Request," specifying the number of units to sell, and sending the request to the fund manager.
How much does it cost to apply for SIP?
SIP registration itself is free, with a minimum investment amount of Rs 1000. However, additional charges may apply, such as wallet charges for payment, fund manager fees, and exit loads for selling investments.
Comparison Between NIBLSF – SSIS – NMBSBFE
A detailed comparison of three mutual funds - NIBL Sahabhagita Fund, Siddhartha Systematic Investment Scheme, and NMB Saral Bachat Fund-E, encompassing factors like entry/exit loads, fees/commissions, and average returns, is provided in the table.
FAQs about SIP
- What is SIP? SIP stands for Systematic Investment Plan, a method of investing money regularly in a mutual fund to enable gradual wealth accumulation.
- How many SIP are there in Nepal? Four open-ended SIPs are available in Nepal - NIBLSF, SSIS, NMBSBE, and NADDF.
- How long should you invest in SIP? SIP is recommended as a long-term investment plan, often continuing until retirement.
- How much should I invest in SIP in Nepal? The minimum investment is Rs 1000, with a requirement to buy at least 100 units of a mutual fund.
- Can I Cancel SIP anytime? Yes, SIP can be canceled at any time, but there may be a penalty before specific dates.
- What is Dividend Re-investment Plan in SIP? It involves reinvesting dividends to buy more shares, promoting compounding for potentially higher returns.
- What is a Systematic Withdrawal Plan? It entails withdrawing a fixed amount from an investment at regular intervals, suitable for those who have achieved their financial goals.
- I am unable to pay for my SIP this month; what to do? Skipping a month's payment incurs no penalty, allowing investors to resume when financially feasible.
