Currently, there are various 47 mutual funds operating in the market that are approved by Securities Board of Nepal (SEBON).
As per data, mutual funds raised their investment by 6.55 percent in NEPSE listed companies while by 11.36 percent in NEPSE unlisted companies. The mutual funds raised their investment in listed companies to Rs 48.97 billion in Ashad compared to Rs 45.96 billion of Jestha. Similarly, they increased their investment in non-listed companies to Rs 1.60 billion from Rs 1.44 billion.
Among the mutual funds, NIBL Sahavagita Fund has the highest investment in both listed and non-listed companies, it has Rs 4.92 billion investment in listed companies and Rs 358.2 million in non-listed companies.
Along with growth in NEPSE Index, mutual funds also logged big growth in their Net Asset Value (NAV). In the month of Ashad, their NAV increased by 0.5820 point compared to the month of Jestha. In the review period, Prabhu Smart Fund (PRSF) recorded the highest NAV of Rs 13.53 while Prabhu Systematic Investment Scheme (PSIS) has the lowest NAV of Rs 10.05. None of the mutual funds has NAV less than 10 in Ashad, according to the published data.
Both FD and Bank Balance declined in Ashad
The mutual funds have diverted their fixed deposits and bank balance to stock market in Ashad. Out of 47 mutual funds, only 23 have limited amount in FD. Additionally, their FD has also shrunk in Ashad compared to Jestha. In the review period, Reliable Samriddha Yojana have kept Rs 336.9 million in FD.
Moreover, their average bank balance has also declined during the period. The average bank balance decreased to Rs 8.78 billion from previously Rs 8.80 billion. Among the mutual funds, 25 raised their bank balance while 22 cut their balance in banks.
