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|