30th October 2025, Kathmandu
Citizen’s Capital Limited’s launch of the Income Secured Portfolio Management Service (PMS) marks a significant development in Nepal’s investment landscape, offering a compelling alternative to traditional savings instruments.
Citizens Capital’s Income Secured PMS
Promising returns of up to 6.25% with an assurance on both the principal investment and the returns, this product is specifically designed to cater to investors who prioritize capital safety and stable income over the volatility associated with the equity market. Given the current financial environment in Nepal, where weighted average deposit rates for commercial banks are reported to be around 4.02% and fixed-income options are sought after, a guaranteed return of 6.25% presents a highly competitive offering for the risk-averse investor.
Understanding the Value Proposition in the Current Market
The appeal of the Income Secured PMS is rooted in its ability to bridge the gap between low-return, traditional bank deposits and high-risk, high-reward stock market investments.
Competitive Returns: The advertised return of up to 6.25% significantly surpasses the typical weighted average interest rates on bank deposits in Nepal, positioning it as an attractive destination for capital that might otherwise sit in a savings or fixed deposit account. This higher yield, paired with the guaranteed nature of the product, is a strong incentive for investors seeking to optimize their passive income stream without exposing their capital to market fluctuations.
Risk Mitigation: The “Income Secured” feature is the cornerstone of this PMS. In a market where non-equity financial products are gaining traction due to uncertainties in the equity space, a guarantee on both the principal amount and the expected returns minimizes the investment risk to practically zero from a market perspective. This is particularly appealing to retirees, conservative investors, or institutions that have strict mandates for capital preservation.
Alternative to Equity-Based PMS: Unlike traditional PMS offerings in Nepal, which primarily focus on professional management of stock market portfolios (a high-risk, high-return segment often aimed at high-net-worth individuals), the Income Secured PMS likely focuses on debt, money market instruments, government bonds, or bank deposits to generate its guaranteed income. This shift provides diversification options away from equity, which is essential for a balanced national investment ecosystem.
Target Investor and Accessibility Features
Citizen’s Capital has structured this product to ensure broad accessibility and flexibility for a specific segment of the Nepali investing public.
Minimum Investment and Liquidity: With a minimum investment requirement of NPR 500,000, the scheme is accessible to a larger pool of serious investors compared to traditional PMS products, which often have higher entry barriers. The flexible tenure options of 3, 6, 9, or 12 months are crucial for meeting diverse liquidity needs and financial planning horizons. This allows investors to align their capital commitment with short-term cash flow needs or medium-term financial goals, a key differentiator from longer-term fixed instruments.
Simplicity and Transparency: The promise of a simple and secure process with transparent management addresses common concerns investors have about the complexity and opaqueness often associated with specialized investment services. By ensuring the PMS operates under the regulatory framework of the Securities Board of Nepal (SEBON), Citizens Capital reinforces its commitment to compliance and investor protection.
Implications for the Nepali Financial Landscape
The introduction of this Income Secured PMS is timely and reflective of broader financial trends in Nepal.
Responding to Interest Rate Dynamics: While overall interest rates for bank deposits remain moderate, the guaranteed 6.25% return serves as a direct, competitive response to the prevailing interest rate environment, which currently sees weighted average deposit rates for commercial banks remaining modest. It pressures traditional banking products to remain competitive while providing an essential outlet for conservative capital.
Growing Appetite for Non-Equity Products: The move highlights the increasing investor preference for non-equity financial products in Nepal. Investors are actively seeking instruments that offer predictable returns without the exposure to stock market volatility. This product is a strategic part of Citizens Capital’s effort to democratize investment and make safe, rewarding opportunities more accessible.
Reinforcing Investor Confidence: By offering an assured investment and returns, the firm is proactively tackling investor hesitancy, particularly among those who have been discouraged by market uncertainties. This focus on capital and returns security is instrumental in building long-term trust in the non-banking financial sector.
The Income Secured PMS is a compelling and strategically timed product, providing Nepali investors with a much-needed, high-security, and respectable-yield option for wealth accumulation and preservation in a dynamic financial market.
For More: Citizens Capital’s Income Secured PMS