Mutual Fund Performance in Bhadra: A Comprehensive Analysis
In Bhadra 2083, Nepal's mutual fund industry saw total investments in listed and unlisted companies decline to Rs. 67.31 Arba from Rs. 68.19 Arba in Shrawan, while bank balances rose to Rs. 14.72 Arba. Commercial banking remained the top sector, with Everest Bank leading at Rs. 1.96 Arba. The industry now comprises 60 schemes, including 45 closed-end funds, 14 open-end schemes, and one matured fund.
Mutual Fund Performance in Bhadra: A Comprehensive Analysis
The mutual fund landscape in Nepal currently features 45 closed-end mutual funds listed on the Nepal Stock Exchange (NEPSE), alongside 14 open-end schemes and 1 matured mutual fund – NMB 50 (NMB50), a closed-end 7-year scheme with a total size of Rs. 1.25 Arba that matured on Bhadra 12, 2083. These open-end and matured funds are traded directly with the respective fund managers, bringing the total number of schemes to 60.
Investment Overview
In the month of Bhadra 2083, mutual fund schemes held an aggregate investment of Rs. 67.31 Arba in listed and unlisted companies, down from Rs. 68.19 Arba in Shrawan 2083. Meanwhile, their bank balance increased to Rs. 14.72 Arba from Rs. 14.31 Arba in the previous month. Mutual funds also invested Rs. 4.55 Arba in debentures and bonds, and Rs. 1.07 Arba (1.22% of total investment) in primary shares and rights.
Top Holdings and Trading Activity
The top investments by mutual funds, irrespective of sectors, in Bhadra are as follows:
- Top bought stocks: [List not provided in original]
- Top sold stocks: [List not provided in original]
Sector-wise Breakdown
As of the end of Bhadra, mutual funds had significant holdings across various sectors:
- Commercial banking: Rs. 14.24 Arba, accounting for 21.16% of total investment.
- Hydropower: Rs. 11.46 Arba, representing 17.04% of total investment.
- Microfinance: Rs. 7.39 Arba, contributing 10.99% of total investment.
Smaller allocations were observed in sectors such as manufacturing and products, promoter shares, and others. These sector-wise holdings provide insight into the diversification strategies employed by mutual funds and their preferences for sector exposure.
Commercial Banks
Among commercial banks, Everest Bank Limited (EBL) is the top priority for mutual funds, with an investment of Rs. 1.96 Arba. Sanima Bank Limited (SANIMA) stands second with Rs. 1.60 Arba, followed by Siddhartha Bank Limited (SBL) in third place with Rs. 1.25 Arba.
Development Banks
In the development bank sector, Garima Bikas Bank Limited (GBBL) has the highest investment preference among mutual funds, with Rs. 1.37 Arba. Shine Resunga Development Bank Limited (SHINE) is second with Rs. 1.12 Arba, and Kamana Sewa Bikas Bank Limited (KSBBL) third with Rs. 1.04 Arba.
Finance Companies
Among finance companies, the top two investments were ICFC Finance Limited (ICFC) and Manjushree Finance Limited (MFIL). Mutual funds invested Rs. 25.33 Crores in ICFC and Rs. 13.75 Crores in MFIL.
Hotels and Tourism
Among the seven listed hotels and the tourism sector on NEPSE, mutual funds have given higher priority to Soaltee Hotel Limited (SHL) with an investment of Rs. 71.68 Crores.
Hydropower Companies
Mutual funds showed a strong inclination towards hydropower companies, with Mountain Energy Nepal Limited (MEN) receiving Rs. 1.40 Arba, Sahas Urja Limited (SAHAS) Rs. 1.19 Arba, and Api Power Company Limited (API) Rs. 1.06 Arba.
Life Insurance Companies
Among life insurance companies in Nepal, National Life Insurance Company Limited (NLICL), Nepal Life Insurance Company Limited (NLIC), and Asian Life Insurance Company Limited (ALICL) are the top priority investment companies for mutual funds. Mutual fund schemes have around Rs. 1.82 Arba in NLICL, Rs. 1.70 Arba in NLIC, and Rs. 83.40 Crores in ALICL.
Microfinance Companies
Among the listed microfinance companies, Chhimek Laghubitta Bittiya Sanstha Limited (CBBL) and Sana Kisan Laghubitta Bittiya Sanstha Limited are among the top holdings. [The original content appears to be truncated here.]