Nepal Life Capital Receives Approval to Launch Its First Mutual Fund Scheme
29th December 2025, Kathmandu
In a landmark event for the investment management sector of Nepal, Nepal Life Capital Limited has officially received regulatory approval to launch its inaugural mutual fund scheme. The Securities Board of Nepal granted the authorization on Poush 13, 2082.
Nepal Life Mutual Fund
This approval allows the company to move forward with a closed-ended collective investment scheme, marking a significant transition for the firm as it expands its reach into the retail and institutional investment markets. By introducing this new financial product, Nepal Life Capital aims to provide a secure and professionally managed avenue for citizens to grow their wealth while contributing to the overall liquidity and stability of the Nepal Stock Exchange.
INTRODUCING NEPAL LIFE SAMRIDDHI LAGANI YOJANA
The first scheme to be launched under the umbrella of Nepal Life Mutual Fund is titled Nepal Life Samriddhi Lagani Yojana. This plan is designed as a closed-ended mutual fund, meaning it will have a specific maturity period and a fixed number of units available for subscription. The total fund size has been finalized at 1.60 billion rupees. To reach this target, the company will issue 160 million units to the public at a par value of 10 rupees per unit. This pricing makes the fund highly accessible to small-scale retail investors who wish to diversify their portfolios but may lack the time or expertise to manage individual stocks and bonds.
SUBSIDIARY OF NEPAL LIFE INSURANCE COMPANY
One of the most compelling aspects of this new mutual fund is its lineage. Nepal Life Capital Limited is a wholly owned subsidiary of Nepal Life Insurance Company Limited, which is the largest and most prominent life insurance provider in Nepal. The backing of such a massive and reputable parent company is expected to instill a high degree of confidence among potential investors. The expertise in risk management and long-term capital preservation that the insurance giant is known for will likely be reflected in the investment strategies adopted by the mutual fund managers. This institutional strength provides a solid foundation for the fund’s market debut.
COMPLIANCE AND REGULATORY OVERSIGHT BY SEBON
The approval process for a mutual fund in Nepal is rigorous, requiring a thorough review of the fund manager’s operational capabilities and the scheme’s proposed investment objectives. The Securities Board of Nepal (SEBON) evaluated the Nepal Life Samriddhi Lagani Yojana to ensure it complies with the Mutual Fund Regulations. This includes checking the governance arrangements, the risk mitigation strategies, and the transparency of the reporting mechanisms. Now that the authorization is secured, Nepal Life Capital is mandated to follow strict disclosure norms, ensuring that unit holders are kept informed about the fund’s net asset value and the composition of its investment portfolio on a regular basis.
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UNDERSTANDING THE CLOSED ENDED FUND STRUCTURE
As a closed-ended investment plan, the Nepal Life Samriddhi Lagani Yojana offers a unique set of characteristics for investors. Once the initial public offering is completed and the units are allotted, the fund will be listed on the Nepal Stock Exchange. This allows investors to buy and sell their units in the secondary market, providing liquidity throughout the duration of the fund’s life. Fund managers for closed-ended schemes often have the advantage of managing a stable pool of capital without the pressure of daily redemptions, which can allow for a more disciplined, long-term approach to asset allocation in equities, debentures, and government securities.
IMPACT ON NEPAL’S EVOLVING CAPITAL MARKET
The entry of Nepal Life Capital into the mutual fund space comes at a time when the Nepalese capital market is maturing and diversifying. Traditionally dominated by direct stock trading, the market is now seeing a surge in demand for collective investment vehicles. Mutual funds play a crucial role in mobilizing domestic savings and channeling them into productive sectors of the economy. The launch of a 1.60 billion rupee fund will add significant depth to the market, providing a stabilized source of institutional capital. Furthermore, it encourages a culture of disciplined, research-based investing among the general public, moving away from speculative trading habits.
STRATEGIC GOALS AND INVESTMENT PHILOSOPHY
Nepal Life Capital has indicated that its approach to the Nepal Life Samriddhi Lagani Yojana will be structured and cautious. The fund’s primary goal will be to generate consistent returns for its unit holders while minimizing downside risks. By spreading the capital across various sectors such as banking, hydropower, and manufacturing, the fund aims to capture the growth of the overall economy. Market observers believe that the participation of insurance-affiliated asset management companies will set a high benchmark for governance and professional ethics in the mutual fund industry, ultimately benefiting the entire ecosystem of investors and listed companies.
CONCLUSION AND NEXT STEPS FOR INVESTORS
In conclusion, the approval of the Nepal Life Samriddhi Lagani Yojana marks a pivotal moment for Nepal Life Capital Limited and the broader financial landscape. With a substantial fund size of 1.60 billion rupees and a unit price of 10 rupees, the scheme is positioned to attract a wide range of participants. As the company prepares for the formal issuance, potential investors should keep a close watch for the official prospectus and the subscription timeline. This new offering represents a professionally managed, regulated, and institutionally backed opportunity to participate in the growth of Nepal’s economy.
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