Siddhartha Mutual Fund's
New Fund Offer (NFO) – Siddhartha Investment Growth Scheme I – will be open
starting tomorrow.
"Collection centres
will start accepting applications from tomorrow and will be open till Sunday at
the earliest," said chief executive of Siddhartha Capital Dhurba
Timilsina.
This is the first mutual
fund in a decade. The opening day of this mutual fund scheme coincides with the
closing of the existing scheme – NCM Mutual Fund. Nepse suspended NCM Mutual
Fund's trading from today following the completion of its 10-year tenure.
Siddhartha Capital – a
merchant banking subsidiary of Siddhartha Bank– will launch NFO of the close
ended scheme named Siddhartha Investment Growth Scheme I worth Rs 400 million
with a five-year tenure.
A unit of the scheme
will be primarily priced at Rs 10, and according to the Mutual Fund Guidelines
2069, a single investor has to buy a minimum of 100 units. A single unit holder
can obtain 10 per cent of the offer at maximum. The units will later be listed
at Nepal Stock Exchange for secondary trading.
"We are planning to
allot the fund units to the applicants within the next 20 days, to start buying
the securities as soon as possible," pointed out Timilsina.
Siddhartha Capital has
appointed 100 collection centres across Nepal. Branches of Siddhartha Bank,
Growmore Merchant Banker, Western Development Bank and Goodwill Finance will
work as collection centres, covering major cities and towns.
The mutual fund is
estimated to offer eight per cent dividend to unit holders in the first year
and increase the amount in subsequent years to up to 13 per cent till the end
of its tenure, but it can change depending on market conditions.
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