Citizens Balanced Scheme Launched, Investment Opportunity in NPR 1 Billion Closed-End Mutual Fund
19th December 2025, Kathmandu
The Nepal Securities Board has officially granted its approval for the operation of the Citizens Balanced Scheme which marks the fourth closed end financial product under the established Citizens Mutual Fund umbrella.
Citizens Balanced Scheme Launched
This significant development in the capital market of Nepal provides a fresh avenue for both individual and institutional investors to grow their wealth through professional management. The scheme has a total fund size of 1 billion Nepalese rupees and is promoted by the reputable Citizens Bank International Limited. The day to day operations and investment strategies will be handled by Citizens Capital Limited which serves as the fund manager. Following the regulatory green light the public issuance of the units began on Poush 4 2082.
The window for purchasing these units is relatively short and is scheduled to remain open until Poush 8 2082 at the earliest during standard banking hours. Investors are encouraged to act quickly to secure their portion of this 1 billion rupee fund. This new offering comes at a time when the financial landscape in Nepal is seeing a shift toward more sophisticated investment vehicles and the Citizens Balanced Scheme is designed to meet this growing demand for diversified and professionally managed portfolios.
UNDERSTANDING THE STRUCTURE AND SIZE OF THE SCHEME
The Citizens Balanced Scheme is structured as a closed end mutual fund which means it has a fixed number of units and a specific maturity period. The total size of 1 billion rupees is divided into units with a face value of 10 rupees each. This affordable entry point makes it accessible to a wide range of investors from students and small savers to large corporate entities. By pooling resources from thousands of participants the fund manager can access a broader range of investment opportunities that might be out of reach for an individual investor.
Citizens Capital Limited has a proven track record of managing mutual funds and delivering consistent dividends to its unit holders. This experience is a key factor for investors who are looking for stability and professional oversight. The leadership of the company is headed by Chairman Rajendra Lal Shrestha while the executive operations are led by Chief Executive Officer Sabir Bade Shrestha. Under their guidance the firm has expanded its footprint in financial advisory and investment management providing comprehensive solutions to the Nepalese market.
WHY THE CURRENT MARKET ENVIRONMENT FAVORS THIS SCHEME
One of the primary reasons to consider an investment in the Citizens Balanced Scheme is the current state of the Nepal Stock Exchange or NEPSE index. Market analysts observe that the index is currently at a relatively lower level compared to its historical peaks. For a mutual fund this represents an ideal entry point because the fund manager can purchase high quality stocks and debentures at attractive prices. Buying assets when the market is low increases the potential for significant capital appreciation as the economy and the stock market recover.
Furthermore this is a balanced scheme which means the investment strategy involves a mix of equity and fixed income instruments. By investing in both shares and debentures the fund aims to maintain a balanced risk and return profile. During times of market volatility the fixed income portion provides a safety net while the equity portion offers the potential for higher returns during bullish phases. This diversified approach is often more effective than traditional savings accounts which typically offer lower interest rates that may not keep pace with inflation.
APPLICATION GUIDELINES AND INVESTMENT LIMITS
The process for applying for the Citizens Balanced Scheme has been made simple and digital to ensure maximum participation. Investors can conveniently submit their applications through the Mero Share online portal or by visiting their respective C ASBA member banks and financial institutions. The widespread network of bank branches across Nepal ensures that even investors in rural areas can participate in this 1 billion rupee opportunity.
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The minimum application requirement is set at 100 units which translates to a modest investment of 1000 rupees. On the other end of the spectrum the maximum limit for an individual application is 100000 units or 10 million rupees. Citizens Capital Limited has specifically advised individual investors to aim for a range between 1000 units and 200000 units while institutional investors are encouraged to apply for larger quantities where feasible to diversify their corporate reserves.
PROJECTED RETURNS AND LONG TERM BENEFITS
According to the financial projections shared by the management team the Citizens Balanced Scheme is estimated to provide an average annual return of approximately 14 percent. While mutual fund returns are subject to market risks this projection is based on the historical performance of the manager and the current valuation of the market. A 14 percent annual return is significantly higher than what is typically offered by fixed deposits or savings accounts in most commercial banks.
Investing in this scheme also promotes a habit of disciplined long term saving. Since it is a closed end fund the capital is locked in for a specific duration which prevents investors from making impulsive withdrawals during minor market fluctuations. This long term perspective is essential for building significant wealth over time. Additionally the dividends distributed by the fund can serve as a source of regular passive income for the unit holders.
THE ROLE OF CITIZENS CAPITAL IN NEPALESE FINANCE
Citizens Capital Limited continues to play a vital role in the evolution of the financial sector in Nepal. By offering services in investment management and financial advisory the company helps to bridge the gap between savers and the capital market. Their focus on customer centric solutions and transparency has earned them a strong reputation among investors. The launch of the Citizens Balanced Scheme is another step in their mission to provide accessible and rewarding investment products to the public.
As the fund manager Citizens Capital will be responsible for rigorous research and analysis to select the best performing securities for the portfolio. They monitor economic indicators and company performance and regulatory changes to make informed decisions that protect and grow the capital of the unit holders. This professional expertise is what sets mutual funds apart from individual trading where many retail investors may lack the time or tools to perform deep market analysis.
CONCLUSION AND FINAL THOUGHTS FOR INVESTORS
The launch of the Citizens Balanced Scheme represents a well timed opportunity for anyone looking to enter the capital market of Nepal. With a strong promoter like Citizens Bank International and an experienced manager like Citizens Capital the fund is positioned to navigate the complexities of the market effectively. The combination of a 1 billion rupee fund size and a balanced investment strategy makes it a robust vehicle for wealth creation.
Interested individuals should ensure they complete their applications before the deadline on Poush 8 2082. By participating in this scheme you are not just saving money but investing in the growth of the Nepalese economy through various sectors represented in the stock market. Whether you are a first time investor or a seasoned professional the Citizens Balanced Scheme offers a balanced and professional approach to achieving your financial goals.
For More: Citizens Balanced Scheme Launched
