Siddhartha Investment Growth scheme after Tihar

Siddhartha Capital is bringing Siddhartha Investment Growth scheme soon as it has received a green signal from the capital market regulator.
"We received the approval letter yesterday from the Securities Board of Nepal," said chief executive of the Siddhartha Capital Dhruba Timilsina.
"We will float Rs 400 million worth units in the market immediately after the Tihar, he said, adding that the five-year scheme could, however, also be allotted to Rs 500 million, if oversubscribed, according to the Mutual Fund Regulation.
The regulation has directed that the fund could allot 25 per cent more, if the units are oversubscribed.
"The current trend of the capital market shows that the investors are slowly gaining confidence and the scheme will help more to boost the confidence," he added.
One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.
An Investor can buy a minimum of 100 units of the scheme that costs Rs 10 each unit and maximum of upto Rs 40 million, Timilsina said, adding that apart from the general investors, the institutional investors like banks and financial institutions can also invest in the scheme as buying mutual fund units would not be considered cross holding — like shares of other banks and financial institutions — which the central bank has barred.
Siddhartha Capital — a subsidiary of Siddhartha Bank — had applied for the approval of the scheme to the board on September 11 after the initial preparations and planned to issue units before the Dashain festival but the board has taken its time to give approval for the mutual fund scheme that is close ended and projects 15 per cent return annually.
The mutual fund is a type of professionally-managed collective investment vehicle that pools money from many investors to purchase securities. Closed-end funds generally issue shares to the public only once, when they are created through an initial public offering.