Siddhartha Bank plans Siddhartha Mutual Fund

Siddhartha Bank is bringing Siddhartha Mutual Fund. According to Securities Board of Nepal, the bank today applied for the permission to start Mutual Fund under the name of Siddhartha Assets Management Company -- a subsidiary of the bank.
It will be the first Mutual Fund after the regulatory authority brought Mutual Fund regulation in 2067.
"Current over supply of shares could be absorbed by institutional investors," the board said, adding that the Fund will also boost investors’ confidence that is at its low currently due to poor performance of the secondary market.
Small investors can buy units of the Fund, whereas the Fund will buy shares when it’s going down to cushion the free fall of the secondary market.
Securities Board of Nepal (Sebon) had brought Mutual Fund Regulation after a long exercise of almost four years.
The regulation had formally paved the way for the entry of institutional investors that will help stabilise the secondary market that is in bearish trend lately.
"Any organised institution floating public issue will have to separate minimum of five per cent of the primary issue for such Funds," according to the Regulation that has given them the right to invest on listed shares at the secondary market, government issued debentures, central bank-issued Treasury Bills and other instruments of the monetary market.
Mutual Fund with a face value of Rs 10 per unit is the most suitable investment for a common people as it offers an opportunity to invest in a diversified, professionally-managed basket of securities at a relatively low cost.
The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. It can be traded at the Nepse and are convertible and has liquidity also. The Funds are expected to fuel capital market by boosting the confidence of the investors.

Nepse fall continues
KATHMANDU: Nepse on Wednesday continued its free fall to close the secondary market at 311.27 points -- the lowest in last seven years. Others, commercial banks, development banks and insurance companies dragged the Nepse down though hydropower and hotels subgroups gained in the day's trading. The others' subgroup lost 11.74 points due to Nepal Telecom, followed by commercial banks and development banks sub groups. Nepal telecom lost Rs 10 per unit shares, whereas Laxmi Bank lost Rs 40 and Nabil Bank lost Rs 25, and Investment Bank and NCC Bank each lost Rs 2o each on their per unit shares. Similarly, Unilever Nepal lost Rs 105 per unit share.