Inside the Chaitra Mutual Fund Surge: Where Nepal's Big Investors Are Pouring Billions

As of the end of Chaitra 2082, Nepal’s mutual fund industry has grown to include 57 schemes, consisting of 43 closed-end and 14 open-end funds, following the recent unit issuance of the Garima Subarna Yojana. Data shows a notable increase in market participation, with cumulative investments in listed and unlisted companies rising to Rs. 66.70 Arba, up from Rs. 63.85 Arba in Falgun. During the same period, bank balances held by these funds decreased slightly to Rs. 11.43 Arba. Fund managers also maintained a presence in debentures, bonds, and primary market offerings.

Sector-wise, commercial banking remains the dominant choice, representing 18.86% (Rs. 12.28 Arba) of total investments. Hydropower and microfinance followed as the next preferred sectors. Individual stock analysis reveals that Everest Bank, Garima Bikas Bank, and ICFC Finance are the top picks within their respective banking and finance categories. In other industries, Soaltee Hotel led the tourism sector, while Mountain Energy and National Life Insurance were high-priority holdings for many funds.

Performance metrics for the month showed significant shifts in Net Asset Value (NAV). Prabhu Smart Fund recorded the most substantial growth with a 22.11% increase in NAV. In contrast, NIBL Sahabhagita Fund saw the largest decline, losing 5.25%. These fluctuations reflect the ongoing market volatility and the diverse investment strategies employed by fund managers across various sectors including insurance, manufacturing, and reinsurance.