Nepal's Mutual Fund Industry in Ashwin 2083: A Complete Analysis of Performance and Sectoral Holdings
Nepal's mutual fund industry held **Rs. 69.74 Arba** in listed and unlisted companies in Ashwin 2083, up from **Rs. 67.31 Arba** in Bhadra, while bank balances declined to **Rs. 14.28 Arba**. Commercial banks remain the largest sector allocation at **22.79%**, followed by hydropower and microfinance, with **Everest Bank**, **Garima Bikas Bank**, and **National Life Insurance** leading their respective categories.
Mutual Fund Landscape in Nepal
There are currently 47 closed-end mutual funds listed on the Nepal Stock Exchange (NEPSE), while 14 open-end schemes are traded directly with their respective fund managers. With NIC ASIA Equity Opportunity Fund and Muktinath Mutual Fund 2 recently issuing units to the general public, the total number of schemes will rise to 61.
Investment Position in Ashwin 2083
Mutual fund schemes held an aggregate investment of Rs. 69.74 Arba in listed and unlisted companies in Ashwin 2083, compared to Rs. 67.31 Arba in Bhadra 2083.
- Bank balance: Declined to Rs. 14.28 Arba from Rs. 14.72 Arba in Bhadra.
- Debentures and bonds: Investments totaled Rs. 4.34 Arba.
- Primary shares/rights: Allocated 1.55% of the portfolio, amounting to Rs. 1.40 Arba.
Sector-Wise Breakdown
Mutual funds maintained significant holdings across sectors as of the end of Bhadra. The commercial banking industry accounts for the highest sector-wise investment at Rs. 15.88 Arba, representing 22.79% of total investment. The hydropower sector follows with Rs. 12.07 Arba (17.33%), while the microfinance sector ranks third with Rs. 7.67 Arba (11.02%).
Smaller allocations were observed in sectors such as manufacturing and products, promoter shares, and others. These holdings highlight the diversification strategies and sector preferences of mutual funds.
Commercial Banks
Among commercial banks, Everest Bank Limited (EBL) is the top priority for mutual funds, with an investment of Rs. 2.23 Arba. Sanima Bank Limited (SANIMA) ranks second with Rs. 1.82 Arba, followed by Siddhartha Bank Limited (SBL) in third place with Rs. 1.37 Arba.
Development Banks
In the development bank category, Garima Bikas Bank Limited (GBBL) holds the highest investment preference at Rs. 1.40 Arba. Kamana Sewa Bikas Bank Limited (KSBBL) ranks second with Rs. 1.20 Arba, and Shine Resunga Development Bank Limited (SHINE) is third with Rs. 1.17 Arba.
Finance Companies
The top two investments in finance companies were ICFC Finance Limited (ICFC) and Manjushree Finance Limited (MFIL). Mutual funds invested Rs. 26.51 Crores in ICFC and Rs. 17 Crores in MFIL.
Hotels and Tourism
Among the seven listed hotels and tourism sector companies on NEPSE, mutual funds showed a clear preference for Soaltee Hotel Limited (SHL), with an investment of Rs. 72.55 Crores.
Hydropower Companies
Mutual fund investment in hydropower companies was led by Mountain Energy Nepal Limited (MEN) with Rs. 1.32 Arba, followed by Sahas Urja Limited (SAHAS) with Rs. 1.26 Arba, and Api Power Company Limited (API) with Rs. 1.11 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 hold approximately Rs. 1.83 Arba in NLICL, Rs. 1.73 Arba in NLIC, and Rs. 87.32 Crores in ALICL.
Microfinance Companies
Among listed microfinance companies, Chhimek Laghubitta Bittiya Sanstha Limited (CBBL), Sana Kisan Laghubitta Bittiya Sanstha Limited (SKBBL), and Nirdhan Utthan Laghubitta Bittiya Sanstha Limited are among the top holdings, reflecting mutual funds' continued confidence in the microfinance sector despite regulatory and operational challenges.