info@investingnepal.com
+977 4417635
Contact Us
Hyundai

Should you invest in mutual fund? See the returns of mutual fund schemes in Nepal

By: Nepse Direct Aug 08, 2019

Mutal funds are for those who want to invest but lack the time to do their own research. These funds are managed by professionals who pick stocks for investors. Mutual funds in general yield higher returns than say fixed deposits or the market index. There is currently one open-ended mutual fund in Nepal, all other being close-end funds. 

At present 3 close-ended mutual funds have matured. SEOS matured this Shrawan 2076, and is yet to declare dividends for the last Fiscal year. Siddhartha Capital is currently floating its 3rd mutual fund scheme SIGS2. 

SIGS1 has distributed 124.5% dividend in five years and has the highest redemption NAV of Rs 21.777. The fund yielded an annualized return of 48.45%. NBF1 has distributed 100% dividend in five years and has a redemption NAV of Rs 17.8. The fund yielded an annualized return of 35.6%. 

SEOS as of now has an annualized return of 13.22%, however, the fund is yet to declare a dividend for the last FY, and the redemtion NAV might change. 

Below are mutual funds that have matured: 

Dividend Distributed (In %)
Symbol Mutual Fund Name FY 2069/70 FY 2070/71 FY 2071/72 FY 2072/73 FY 2073/74 FY 2074/75 FY 2075/76
SIGS1 Siddhartha Investment Growth Scheme-1 4.5 15 15 30 60    
NBF1 Nabil Balanced Fund-1   14 14 30 42    
SEOS Siddhartha Equity Oriented Scheme       16 25 12 To be announced
Symbol Mutual Fund Name Total Dividend Redemption NAV Initial Investment Dividend Amount Value at Redemption Value at maturity Annualized Return
SIGS1 Siddhartha Investment Growth Scheme-1 124.5 21.777 1000 1245 2177.7 3422.7 48.45%
NBF1 Nabil Balanced Fund-1 100 17.8 1000 1000 1780 2780 35.6%
SEOS Siddhartha Equity Oriented Scheme 53 11.31 1000 530 1131 1661 13.22%

At present 14 mutual funds have already been listed in NEPSE, their maturity ranging from 5 to 10 years, and fund size of Rs 75 crore to 1.5 arba. Mutual funds have different objectives and we must select one according to our risk appetite. A fund that invests totally in shares will be riskier that one that diversifies its investment between debt and equity. There is though no guaranteed returns, and investors must do their research before choosing a mutual fund scheme.  

Below are mutual funds that are currently listed in NEPSE and their dividend distribution:

S.N. Symbol FY 2072/73 FY 2073/74 FY 2074/75 FY 2075/76 Monthly NAV (Rs.) Asadh 2076
1 GIMES1         8.92
2 LEMF         9.1
3 LVF1 25% 25%   15% 11.58
4 NIBLPF         8.28
5 NIBSF1 15% 18% 12%   10.7
6 NMBHF1         11.01
7 NMBSF1 20% 21.06% 21.05%   11.92
8 NEF         9.02
9 SAEF       10% 11.03
10 SEF       11% 11.24
11 CMF1         11.35
12 NICGF       10% 11.18
13 NBF2         10.04
            14 CMF2         0