NIBL Sahabhagita Fund is the first open ended mutual fund being issued in domestic securities market. Out of the total approved units, NIBL is issuing 20 million mutual fund units in the first stage. The capital has allocated 1 million mutual funds to NIBL Ace Capital and 6.5 million units to Nepal Investment Bank. The remaining 12.5 million units will be issued to general public.
The first of its kind in Nepal, NIBL Shabhagita Fund will not be listed in NEPSE unlike other close ended mutual fund. Similarly, it will not have fixed maturity period.
As per NIBL Ace Capital, trading will be carried out through the promoter or manager of the fund themselves or through appointment of any other distributors.
Mekh Bahadur Thapa, General Manager of NIBL informed that designated branch offices of fund promoter and manager will be given the responsibility of trading for now. 'In the second phase, BFIs will be included in the process," he added.
According to fund manager, NIBL Capital, trading of the units will be allowed only after three months given that the mobilization of collected funds will take time. The fund will be traded on the basis of daily net asset value (NAV).
Thapa said that the settlement will be based on CDSC's T+3 system. Fee will be charged while selling only.
"In a bid to encourage long term investment, we will charge 1.5 percent fee if the mutual fund units holder sell the units within six months. However, no fee will be charged after two years," said Thapa.
