NIC ASIA Equity Linked Investment Scheme Fund Size Reaches NPR 3 Billion

19th June 2026, Kathmandu

The Securities Board of Nepal has officially authorized a massive fund size expansion for the NIC ASIA Equity Linked Investment Scheme.

NIC ASIA ELIS Fund

The regulatory clearance enables the open-ended mutual fund program to scale up its total asset boundaries significantly. Managed and administered under the specialist investment wing of NIC ASIA Capital Limited, the expansion plan was put forward to handle rising public subscription volumes and capture broader equity opportunities. The formal endorsement by the state securities watchdog gives the fund managers immediate legal authority to issue fresh investment units to individual savers and corporate entities.

Statutory Underpinnings and Comprehensive Regulatory Approval Metrics

The capital pooling expansion operates under the established securities codes and collective savings laws governed by the state financial overseers.

• Sponsoring Banking Enterprise: NIC ASIA Bank Limited
• Fund Management and Depository Node: NIC ASIA Capital Limited
• Target Collective Asset Scheme: NIC ASIA Equity Linked Investment Scheme (ELIS)
• Enabling Legislative Foundations: Securities Act 2063 along with the Collective Investment Fund Regulations 2067
• Official Regulatory Approval Date: 2083/03/03 BS
• Previous Authorized Fund Ceiling: 1 Billion Nepalese Rupees
• New Approved Fund Ceiling: 3 Billion Nepalese Rupees
• Core Investment Direction: Equity shares and corporate equity-linked market assets

Core Characteristics of the Equity Linked Investment Scheme System

The expanding open-ended financial program uses specific structural features designed to give participants a highly flexible liquidity pathway.

Unlike common closed-ended mutual fund portfolios that lock in buyer capital for fixed five or ten year periods before liquidating, this equity-linked setup uses a flexible open-ended structure. This layout allows investors to buy fresh units or redeem existing balances directly through designated merchant desks on any standard working day. The incoming public cash assets are collected into a single pool and placed systematically into a diversified selection of listed corporate stocks by certified investment analysts.

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Strategic Impact of Fund Scaling on Portfolio Diversification and Market Stability

The massive three billion rupee capital ceiling gives the central portfolio managers much greater freedom when balancing risk exposures.

With a significantly larger pool of investment capital available, the fund management team can spread its stock purchases across multiple corporate sectors like commercial banks, major hydropower plants, non-life insurance companies, and manufacturing enterprises, which reduces the overall risk of holding too many eggs in one basket.

Furthermore, having larger institutional investment funds operating in the market improves day-to-day liquidity on the trading floors, helping smooth out sudden price swings caused by speculative retail trading.

Boosting Digital Fund Management Practices and Strengthening the Mutual Fund Sector

The administrative growth at Trade Tower in Thapathali matches the current transition toward digital wealth management tools seen throughout the national financial network.

By providing regular net asset value declarations, clear monthly balance sheet reviews, and straightforward online redemption channels, the merchant group helps local citizens adopt safer, professionally supervised savings habits. As more household savers move away from risky real estate speculation and direct equity trading to trust their funds with certified portfolio managers, this expansion strengthens the collective investment industry, proving that clear regulatory oversight is a vital step toward building a mature and resilient capital market across Nepal.

For More: NIC ASIA ELIS Fund