2nd September 2025, Kathmandu
The unit allocation of Nabil Mutual Fund’s open-ended scheme “NI 31” has been successfully completed.
NI 31 Unit Allocation
The scheme, which was issued with a face value of NPR 10 per unit, was a collaborative effort between the fund promoter, Nabil Bank Limited, and the fund manager, Nabil Investment Banking Limited. The total size of the scheme is 250 million units.
Allotment and Scheme Details
In the first phase of the issuance, 150 million units of NI 31 were offered to the public. As per the regulations, a fixed portion of the units, specifically 15% of the scheme’s first phase issuance, was reserved for the scheme manager. This amounts to 3.75 million units. The remaining 112.5 million units were made available for subscription by general investors. The public offering was open from August 14, to August 19.
The formal allotment of the units took place on September 1. At the office of Nabil Investment Banking in Naxal, Kathmandu. The allotment process was carried out with full transparency, with representatives from key stakeholders in attendance, including officials from Nabil Bank Limited, CDS and Clearing Limited, and the scheme manager, among others. This multi-party presence ensures the integrity of the process, a crucial factor for building and maintaining investor trust in the capital market.
Accessibility for Investors
In an effort to promote convenience and accessibility, Nabil Mutual Fund has made the allotment results available online. Investors can easily check their allotment status by visiting the official portal: iporesult.cdsc.com.np. This digital approach is a significant improvement over traditional methods, saving investors time and effort. It aligns with the broader trend of digital transformation in Nepal’s financial sector, making the capital market more user-friendly and inclusive for a wider range of participants.
The Significance of NI 31
The launch and successful allotment of the NI 31 scheme underscore Nabil Mutual Fund’s commitment to providing structured and professionally managed investment opportunities. As an open-ended mutual fund, NI 31 offers investors key advantages that are distinct from closed-ended schemes or direct stock market investments. Investors can subscribe to or redeem units on an ongoing basis directly with the fund manager at the daily-calculated Net Asset Value (NAV). This perpetual nature provides high liquidity, which is a major draw for investors who may need to access their funds at any time without a fixed lock-in period.
For the general investor, mutual funds like NI 31 offer a strategic pathway to participate in the market. They provide:
Diversification: The funds are pooled from numerous investors and invested across a variety of securities, including equities and fixed-income instruments. This diversification helps mitigate risk, as the performance of a single security has a limited impact on the overall portfolio.
Professional Management: The scheme is managed by experts from Nabil Investment Banking Limited, a subsidiary of Nabil Bank, with a proven track record in asset management. This expertise-driven approach ensures that investment decisions are based on thorough research and market analysis, which can be particularly beneficial for small and medium-sized investors who may lack the time or knowledge to manage their own portfolios.
Accessibility: The low entry point of NPR 10 per unit makes the scheme highly accessible to a broad demographic of investors, promoting financial inclusion.
Growing Popularity of Mutual Funds in Nepal
The successful completion of the NI 31 allotment is a strong indicator of the rising popularity of mutual funds in Nepal. The country’s capital market is witnessing a shift in investor behavior, with more individuals seeking professionally managed, low-risk alternatives to direct equity trading. This trend is vital for the long-term health and maturity of the financial ecosystem. Mutual funds help channel savings into productive sectors of the economy while providing investors with a secure and transparent way to grow their wealth. As more such schemes are introduced, they will play a crucial role in diversifying the market and enhancing overall financial literacy and inclusion.
Conclusion
The successful allotment of Nabil Mutual Fund’s NI 31 scheme is a significant milestone that reinforces investor trust and highlights the growing appeal of mutual funds in Nepal. With the backing of a reputable bank and the expertise of its investment banking arm, NI 31 offers a secure, transparent, and accessible investment opportunity. The scheme’s open-ended nature, combined with professional management and diversification benefits, makes it an attractive option for both new and experienced investors. This successful issuance not only strengthens Nabil Mutual Fund’s position in the market but also contributes to the overall development and deepening of Nepal’s capital market, setting a positive precedent for future structured investment products.
For More: NI 31 Unit Allocation