NIC ASIA Capital to float its first mutual fund worth Rs 1 billion; Issue to commence from Magh 2

NIC ASIA Growth Fund, first mutual fund of NIC ASIA Capital will be issued to general public from 2nd Magh, 2074. Securities Board of Nepal had granted an approval for the public issue on 11th Poush, 2074. 
This 7 year close ended mutual fund will have a fund size of Rs 1 billion. The capital will issue 100 millions units of face value Rs 10 per unit. NIC ASIA Capital received “[ICRANP-IR] A-” rating from ICRA Nepal indicating an adequate rating.

Being a "Growth fund", the major portion of the fund will be invested in the equity instruments, whereas a small portion will be invested in debt instruments. 15% of the total units will be reserved for NIC ASIA Bank and NIC ASIA collectively, who are the fund sponsor and fund manager of the scheme.

Mutual funds can be considered as a boon for both beginners as well as experienced investors due to the diversified investment, experts decision, economies of scale and the above average market return. High liquidity of the units in the secondary market makes mutual funds more attractive. Above all, the unit holders can track the investment decision made by the expert team and learn from them.

Currently, there are 12 mutual funds in Nepal. Out of them, 10 are currently in operation. Recently floated Sanima Equity Fund and Siddhartha Equity Fund are yet to get listed in stock exchange.