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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