Sunday, March 24, 2013

Nabil mutual fund oversubscribed, closed

Nabil Bank’s Nabil Balanced Fund I has been well received by the public.
The new fund offer for Nepal’s second mutual fund — Nabil Balanced Fund I worth Rs 600 million — that had opened on March 20, closed today.
"We believe that the offer got oversubscribed by almost four times based on the initial report, though some districts have yet to report the final tally," said chief executive of Nabil Investment Pravin Raman Parajuli.
Nabil Investment is a merchant banking subsidiary of Nabil Bank that works as the fund manager and depository for the mutual fund.
Following the high number of applications for the mutual fund units priced at Rs 10, Nabil Investment will be allotting units worth Rs 750 million as allowed by Mutual Fund Regulations 2067.
Nabil Bank will work as the sponsor for the mutual fund managed by its merchant banking subsidiary.
The scheme's portfolio is planned to contain 70 per cent equities and the rest is divided in fixed income instruments such as government securities and fixed deposits. The objective of the scheme is to balance the risk of the portfolio by investing in a mix of securities.
The close-ended scheme with a five-year tenure is expected to provide 18 per cent annual dividend on average to unit holders.

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