NIC Asia Equity Linked Investment Scheme Launching From August 14

6th August 2025, Kathmandu

The financial landscape in Nepal is continually evolving, with an increasing number of individuals and institutions seeking new avenues for wealth creation. Mutual funds have emerged as a cornerstone of this growth, providing a professionally managed and diversified way to participate in the stock market.

Equity Linked Investment Scheme

In a significant development, NIC Asia Capital Limited, a leading name in the investment sector, is launching a new open-ended mutual fund: the “NIC Asia Equity Linked Investment Scheme.”

This new scheme is slated to open for applications from August 14, 2025 (Shrawan 29, 2082). The launch is a promising opportunity for investors looking for a liquid and professionally managed investment option that taps into the potential of Nepal’s burgeoning equity market. This article will provide a detailed breakdown of the scheme, helping you understand its features, the application process, and the potential benefits it offers.

What is the NIC Asia Equity Linked Investment Scheme?

The NIC Asia Equity Linked Investment Scheme is an open-ended mutual fund, which is a popular type of investment vehicle due to its flexibility. Unlike a close-ended fund, which has a fixed maturity period and trades on the stock exchange, an open-ended fund allows investors to buy and sell units directly with the fund house at any time. The price of these units is determined by the fund’s Net Asset Value (NAV), which is calculated on a daily basis.

This structure provides a high degree of liquidity, making it an attractive option for investors who may need to access their capital without the constraints of a fixed-term investment.

Key Details of the Scheme

• Fund Type: Open-ended Mutual Fund
• Scheme Manager: NIC Asia Capital Limited
• Issue Start Date: Shrawan 29, 2082 (August 13, 2025)
• Face Value per Unit: NPR 10
• Total Units for Sale: 100 million units
• Total Scheme Size: NPR 1 billion

Unit Allocation and Investment Limits

The fund is structured to ensure broad participation while also demonstrating the fund manager’s commitment. Of the 100 million units approved for issuance, 15 million units (15%) are reserved as seed capital for NIC Asia Capital Ltd. This means the fund manager has a vested interest in the fund’s performance, aligning its goals with those of the investors.

The remaining 85 million units are for public subscription. In the initial phase, 50 million units will be offered to the general public. This tiered approach allows for a structured and managed rollout.

Investors can apply for a minimum of 100 units, making it accessible to a wide range of retail investors. The maximum application limit is 10 million units, which accommodates high-net-worth individuals and institutional investors.

How to Apply for the Mutual Fund

The application process for the NIC Asia Equity Linked Investment Scheme is designed to be user-friendly and convenient. Prospective investors can submit their applications through several channels:

• MeroShare: The most common and convenient method is through the online MeroShare platform. Investors with a valid Demat account and C-ASBA service can apply for units from the comfort of their homes.
• Designated Collection Centers: Applications can also be submitted physically at designated collection centers, which typically include branches of NIC Asia Bank and other partner banks and financial institutions.

The application period begins on August 14. It is important for all applicants to have a valid Demat account, which is a mandatory requirement for investing in mutual funds in Nepal.

Issue Closing Date and Activation Conditions

The initial public offering period is scheduled to close on the earliest date of August 18, 2025 (Bhadra 2, 2082). However, if the fund does not receive full subscription by this date, the closing date may be extended until August 28, 2025 (Bhadra 12, 2082).

A critical condition for the scheme’s activation is the minimum subscription requirement. The fund must receive subscriptions for at least 50 million units (NPR 500 million). If this minimum threshold is not met by the final closing date, the scheme will be canceled, and all applicants will receive a full refund of their money within 15 days of the cancellation notice. This protects investors by ensuring the fund only proceeds if there is a sufficient capital base to operate effectively.

The Investment Case: Why Consider This Scheme?

The NIC Asia Equity Linked Investment Scheme offers several compelling advantages for investors.

1. Professional Fund Management
The fund will be managed by NIC Asia Capital, a reputable and experienced fund manager in the Nepali market. Their team of experts will conduct extensive research and analysis to make informed investment decisions, a task that can be challenging for individual investors. This professional management aims to maximize returns and mitigate risks more effectively than an individual could.

2. Portfolio Diversification
The scheme is designed to invest in a diversified portfolio of equity and equity-related instruments. This diversification is a key benefit, as it spreads risk across various stocks and sectors, reducing the impact of poor performance from any single company.

3. Flexibility and Liquidity
As an open-ended fund, it offers excellent liquidity. Once the initial offering period is over, investors can buy or sell units on any business day at the prevailing NAV. This flexibility is ideal for investors who need to maintain access to their funds for future needs.

4. Low Entry Barrier
With a face value of NPR 10 per unit and a minimum application of just 100 units, the scheme has a very low entry point. This makes it a great starting point for new investors who want to enter the stock market without a large initial capital commitment.

Final Takeaway

The launch of the NIC Asia Equity Linked Investment Scheme by NIC Asia Capital marks a notable event in Nepal’s financial market. It provides a structured, accessible, and professionally managed investment avenue for anyone looking to build a long-term portfolio. While the potential for returns is promising, all prospective investors should carefully review the scheme’s offer document and assess their personal risk tolerance before making a final decision. By combining the benefits of diversification, liquidity, and expert management, this fund presents an attractive opportunity to grow wealth in Nepal’s dynamic capital market.

For More: Equity Linked Investment Scheme