CBIL Capital to launch its 1st mutual fund; Sebon grants approval

CBIL Capital, subsidiary company of Citizens Bank International will soon launch its 1st mutual fund named "Citizen Mutual Fund-1". Securities Board of Nepal has granted an approval for the scheme on 1st january, 2018 .

The close end mutual fund will have a fund size of Rs 1 billion.  The company will issue 100 million units of face value Rs 10 among the public. Citizens Bank International and CBIL Capital can collectively invest 15% of the total asset of the scheme as the seed capital. Citizens Bank Internation will be the fund sponser whereas CBIL Capital will be fund manager of the scheme. 

The fund size of Rs 1 arba can expand by 25% to Rs 1.25 arba in case of over subscription. The scheme will have a life of 7 years. The unit holders will be refunded with an amount equivalent to the NAV at the time of maturity. The scheme being a "balanced scheme", the fund will be invested equally in both equity and debt instruments. 

Mutual funds can be considered as a boon for beginners due to the diversified investment, experts decision, economies of scale and the above average market return. High liquidity of the unit is like cherry on the cake. And above all, the unit holders can track the investment decision made by the expert team and learn from them.    

NIC ASIA Growth Fund was also recently approved by SEBON whereas Sanima Equity Fund successfully floated and allotted the mutual fund units. Both sanima equity fund and siddhartha equity fund are yet to get listed in the stock exchange. Total of 12 mutual funds are currently operating in Nepal.