Tuesday, November 27, 2012

Siddhartha mutual fund from tomorrow

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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