NIMB’s NIBL Sahabhagita Fund For Open Ended Mutual Fund For Nepali Investors
4th August 2025, Kathmandu
The NIBL Sahabhagita Fund is a pioneering open-ended mutual fund in Nepal, launched by NIBL Mutual Fund.
NIMB’s NIBL Sahabhagita Fund
This scheme is specifically designed to be an accessible, liquid, and professionally managed investment vehicle for retail investors. The primary goal of the fund is to encourage a cultural shift from traditional savings to disciplined investing, thereby supporting long-term capital formation and wealth creation for individuals. This detailed guide will explore the fund’s objectives, key highlights, fee structure, and the compelling reasons why it is a suitable investment option for a wide range of Nepali investors.
Fund Objectives and Structure
The NIBL Sahabhagita Fund operates with a clear and focused mission. Its primary objective is to build and sustain a successful open-ended mutual fund model within Nepal’s capital market, offering a simple and diversified investment vehicle. The fund’s core investment objective is to generate steady, long-term returns for its unit-holders through a strategy of prudent and professional fund management. This ensures that the fund manager’s decisions are always aligned with the best interests of the investors.
The fund was launched with an approved scheme size of NPR 6 Billion, which is designed to be extendable as needed to accommodate growing investor interest. The seed capital for the fund was NPR 900 Million, representing 15% of the total scheme size. The initial public offering (NFO) was for NPR 125 Million, with a par value of NPR 10 per unit. The fund was officially approved on April 22, 2019, and allotted on July 9, 2019.
A key characteristic of open-ended funds is that they are not listed on a stock exchange. Instead, the units are bought and sold directly through the fund manager or its authorized outlets at the daily Net Asset Value (NAV). This structure provides high liquidity, as investors can redeem their units at any time, unlike closed-end funds which are traded on the secondary market.
Transparent Fee Structure
One of the strengths of the NIBL Sahabhagita Fund is its clear and transparent fee structure, which is designed to be investor-friendly, especially for long-term holders.
Entry Load: The fund does not charge an entry load, meaning there are no fees for purchasing units. This makes the fund an attractive option for new investors, as every rupee invested goes directly into the fund.
Exit Load: An exit load is only charged if an investor redeems their units within a period of 24 months from the date of purchase. The charges are tiered based on the holding period, incentivizing long-term investment.
- Within 6 months: 1.5%
- 6 to 12 months: 1.25%
- 12 to 18 months: 1%
- 18 to 24 months: 0.75%
- After 24 months: No charge
These charges are a standard practice for open-ended funds, designed to discourage short-term speculation and promote a long-term investment mindset.
Scheme Management Fees: The fund’s operational expenses are covered by a set of management fees, which are deducted from the scheme’s assets and factored into the NAV calculation. These fees include a Fund Management Fee of 1.25%, a Depository Fee of 0.2%, and a Fund Supervisor Fee of 0.12%. These fees are competitive and in line with industry standards, ensuring the fund is managed efficiently and transparently.
A Track Record of Performance
The NIBL Sahabhagita Fund has demonstrated a commendable track record of distributing dividends to its unit-holders, showcasing the effectiveness of its fund management strategy. While past performance is not a guarantee of future returns, the fund has distributed the following dividends:
- Fiscal Year 2076/77: 8.25%
- Fiscal Year 2077/78: 50%
- Fiscal Year 2078/79: 7.2%
- Fiscal Year 2079/80: 4%
These dividends, particularly the impressive 50% payout, highlight the fund’s ability to generate significant returns for its investors under favorable market conditions.
Flexible Investment Options
The fund offers multiple investment options to cater to various financial goals and disciplined savings habits:
- Systematic Investment Plan (SIP): This popular option allows investors to make regular monthly investments. It is a powerful tool for disciplined wealth accumulation and for leveraging the benefits of rupee cost averaging.
- Systematic Withdrawal Plan (SWP): This plan is ideal for retirees or individuals seeking a passive income stream. It allows for the periodic withdrawal of a fixed amount from the fund, providing a steady flow of cash.
- Dividend Re-Investment Plan (DReP): This option automatically reinvests any dividends back into the fund, allowing investors to harness the power of compounding and accelerate the growth of their investment over time.
Who Should Invest in the NIBL Sahabhagita Fund?
The NIBL Sahabhagita Fund is a versatile investment tool suitable for a wide range of investors:
- Individuals with long-term financial goals such as retirement planning, children’s education, or purchasing a home.
- Savers who are looking to earn better returns than traditional deposit accounts without the high risk associated with direct stock market investing.
- Investors who want a diversified portfolio but lack the time or expertise to research and select individual stocks.
- Non-Resident Nepalis (NRNs) and residents who are interested in systematic wealth creation in the Nepali market.
In conclusion, the NIBL Sahabhagita Fund provides a robust, transparent, and professionally managed avenue for Nepali investors to participate in the capital market. With its focus on long-term growth, affordable entry point, flexible investment plans, and high liquidity, it is an excellent choice for anyone looking to transform their savings into a powerful engine for wealth creation.
For More: NIMB’s NIBL Sahabhagita Fund
