The Nepali capital market will be seeing more fund offerings in the near future with five mutual fund managers having filed applications for the approval of their proposed schemes.
NIBL Capital and Nabil Invest have joined Siddhartha Capital, NMB Capital and Laxmi Capital in seeking approval from Securities Board of Nepal (Sebon) — the regulator — for the new mutual fund schemes.
Nabil Invest — fund supervisor for existing Nabil Balanced Fund (NBF) — has already submitted the prospectus for its second stint in the mutual fund market. It has proposed Rs one billion equity oriented scheme. Likewise, NIBL Capital — merchant banking arm of Nepal Investment Bank — has also applied for approval for its NIBL Sambriddhi Fund worth Rs 800 million.
Already three more mutual fund schemes have been waiting for the regulator’s approval since almost a year. Siddhartha Capital — fund supervisor for Siddhartha Investment Growth Scheme I (SIGS) — submitted prospectus for mutual fund scheme worth Rs 800 million to the capital market regulator for approval in April, 2013. NMB Capital — subsidiary of NMB Bank — has been seeking the go-ahead of the regulator for its Rs 600 million NMB Sulabh Invest Fund since past 10 months. Likewise, Laxmi Bank’s Laxmi Capital has also applied for approval of its Laxmi Value Fund worth Rs 400 million.
In addition, Global IME Bank’s Global Capital is also preparing the prospectus for a mutual fund scheme, according to a Sebon source.
Although the existing Rs 1.5 billion market of mutual funds in the secondary trading seems to be undervalued at present, fund managers seem to be confident about the prospects of the mutual fund market. Both SIGS and NBF are traded way below their net asset values (NAV), which stand at Rs 16.22 and Rs 14.7 per unit. NAV of a mutual fund shows real value of each unit of the fund.
“The market has just begun to open up for mutual funds, and we are optimistic that even investors will warm up to the units in the secondary market soon,” said CEO of Nabil Invest, Pravin Raman Parajuli.
Mutual funds are considered a suitable investment instrument for rookie investors and those with comparatively small risk-appetite. The fund managers pool funds from small investors and invest it in diverse portfolios and sell the units to investors.
“The rising NAVs of the funds also demonstrate that fund managers are doing a good job, even our scheme has appreciated to Rs 14.7, up 47 per cent,” Parajuli said.
Sebon has asked all the fund managers and sponsors to get rated by a credit rating agency before launching mutual fund schemes, so that investors can get independent opinion about managers that will handle their investment.
source: the himalayan times,11 april 2014
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NIBL Capital and Nabil Invest have joined Siddhartha Capital, NMB Capital and Laxmi Capital in seeking approval from Securities Board of Nepal (Sebon) — the regulator — for the new mutual fund schemes.
Nabil Invest — fund supervisor for existing Nabil Balanced Fund (NBF) — has already submitted the prospectus for its second stint in the mutual fund market. It has proposed Rs one billion equity oriented scheme. Likewise, NIBL Capital — merchant banking arm of Nepal Investment Bank — has also applied for approval for its NIBL Sambriddhi Fund worth Rs 800 million.
Already three more mutual fund schemes have been waiting for the regulator’s approval since almost a year. Siddhartha Capital — fund supervisor for Siddhartha Investment Growth Scheme I (SIGS) — submitted prospectus for mutual fund scheme worth Rs 800 million to the capital market regulator for approval in April, 2013. NMB Capital — subsidiary of NMB Bank — has been seeking the go-ahead of the regulator for its Rs 600 million NMB Sulabh Invest Fund since past 10 months. Likewise, Laxmi Bank’s Laxmi Capital has also applied for approval of its Laxmi Value Fund worth Rs 400 million.
In addition, Global IME Bank’s Global Capital is also preparing the prospectus for a mutual fund scheme, according to a Sebon source.
Although the existing Rs 1.5 billion market of mutual funds in the secondary trading seems to be undervalued at present, fund managers seem to be confident about the prospects of the mutual fund market. Both SIGS and NBF are traded way below their net asset values (NAV), which stand at Rs 16.22 and Rs 14.7 per unit. NAV of a mutual fund shows real value of each unit of the fund.
“The market has just begun to open up for mutual funds, and we are optimistic that even investors will warm up to the units in the secondary market soon,” said CEO of Nabil Invest, Pravin Raman Parajuli.
Mutual funds are considered a suitable investment instrument for rookie investors and those with comparatively small risk-appetite. The fund managers pool funds from small investors and invest it in diverse portfolios and sell the units to investors.
“The rising NAVs of the funds also demonstrate that fund managers are doing a good job, even our scheme has appreciated to Rs 14.7, up 47 per cent,” Parajuli said.
Sebon has asked all the fund managers and sponsors to get rated by a credit rating agency before launching mutual fund schemes, so that investors can get independent opinion about managers that will handle their investment.
source: the himalayan times,11 april 2014
LINK
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