Global IME Bank Ltd has invite application for subscription of its 80 million units of mutual fund named ‘Global IME Samunnat Scheme-1’.Publishing a prospectus on Friday, the bank, the sponsor of the scheme, said that investors can subscribe up to 8 million units while a minimum limit is 100 units.
The face value of the scheme is Rs 10 per unit. Global IME Capital is the fund manager of the close-end scheme that has maturity period of seven years. The scheme will distribute the unit shareholders realizable value of the assets after seven years.
Paras Man Dhakal, CEO of Global IME Capital, told Republica that the fund size can be stretched by 1.25 percent to Rs 1 billion if the scheme is oversubscribed. “The fund will be invested on various instruments including shares, equities and initial public offering (IPO), among other market instruments, to ensure better return to unit holders,” said Dhakal.
Global IME Bank Ltd has invite application for subscription of its 80 million units of mutual fund named ‘Global IME Samunnat Scheme-1’.Publishing a prospectus on Friday, the bank, the sponsor of the scheme, said that investors can subscribe up to 8 million units while a minimum limit is 100 units.The face value of the scheme is Rs 10 per unit. Global IME Capital is the fund manager of the close-end scheme that has maturity period of seven years. The scheme will distribute the unit shareholders realizable value of the assets after seven years.
Paras Man Dhakal, CEO of Global IME Capital, told Republica that the fund size can be stretched by 1.25 percent to Rs 1 billion if the scheme is oversubscribed. “The fund will be invested on various instruments including shares, equities and initial public offering (IPO), among other market instruments, to ensure better return to unit holders,” said Dhakal.
The mutual fund will also be listed on Nepal Stock Exchange (Nepse) for trading. The mutual fund subscription is opened for the investors from February 17 while the application will be closed on February 20 at the earliest. ICRA Nepal, a rating agency, has assigned an “[ICRANP] AMC Quality 3(AMC3)” rating to Global IME Capital Limited, indicating adequate assurance on management quality. ICRA Nepal assigns the rating on a scale of AMC1 through AMC5, with AMC1 indicating highest assurance on management quality and AMC5 indicating poor assurance.
Analysts say investment in mutual funds is relatively safer for stock market investors. Though the mutual fund is relatively new to the capital market in Nepal, attraction toward such scheme is increasing. The latest mutual fund ‘NMB Sulav Investment Fund-I’ promoted by NMB Bank and operated by NMB Capital in October last year was oversubscribed by two times to Rs 2.2 billion - the highest collection among mutual funds floated so far.
“Mutual funds can be the best way for a new investor to enter the stock market. It is also an opportunity for investors to go for portfolio diversification,” Shreejesh Ghimire, CEO of NMB Capital, told Republica.
There are six schemes in the market operated by six merchant banks. However, mutual fund is at a nascent stage, according to ICRA Nepal. “So far, only six mutual fund schemes have been launched in the Nepali market with overall industry’s Assets under Management (AUM) less than Rs 6 billion. Schemes so far are mostly composed of equity investments through primary and secondary market, predominantly across banks and financial institutions,” a press note issued by ICRA Nepal states.Mutual fund unit holders can reap the benefit through dividend offered by the fund, secondary market capital gains and ultimate realizable value after the maturity period of the fund. “For investors who cannot go to the market daily and trade securities, the mutual fund helps them in trading through their fund. It is relatively a low-risk investment option for the investors of the stock market characterized by volatility,” Dhakal said.
The mutual fund will also be listed on Nepal Stock Exchange (Nepse) for trading. The mutual fund subscription is opened for the investors from February 17 while the application will be closed on February 20 at the earliest. ICRA Nepal, a rating agency, has assigned an “[ICRANP] AMC Quality 3(AMC3)” rating to Global IME Capital Limited, indicating adequate assurance on management quality. ICRA Nepal assigns the rating on a scale of AMC1 through AMC5, with AMC1 indicating highest assurance on management quality and AMC5 indicating poor assurance.
Analysts say investment in mutual funds is relatively safer for stock market investors. Though the mutual fund is relatively new to the capital market in Nepal, attraction toward such scheme is increasing. The latest mutual fund ‘NMB Sulav Investment Fund-I’ promoted by NMB Bank and operated by NMB Capital in October last year was oversubscribed by two times to Rs 2.2 billion - the highest collection among mutual funds floated so far. “Mutual funds can be the best way for a new investor to enter the stock market. It is also an opportunity for investors to go for portfolio diversification,” Shreejesh Ghimire, CEO of NMB Capital, told Republica.
There are six schemes in the market operated by six merchant banks. However, mutual fund is at a nascent stage, according to ICRA Nepal. “So far, only six mutual fund schemes have been launched in the Nepali market with overall industry’s Assets under Management (AUM) less than Rs 6 billion. Schemes so far are mostly composed of equity investments through primary and secondary market, predominantly across banks and financial institutions,” a press note issued by ICRA Nepal states.
Mutual fund unit holders can reap the benefit through dividend offered by the fund, secondary market capital gains and ultimate realizable value after the maturity period of the fund. “For investors who cannot go to the market daily and trade securities, the mutual fund helps them in trading through their fund. It is relatively a low-risk investment option for the investors of the stock market characterized by volatility,” Dhakal said.
source:republica,6 feb 2016
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