The perception that mutual funds in Nepal yield low returns is becoming outdated, according to Ramendra Rayamajhi, CEO of NIC Asia Capital Limited. With over a decade of experience in Nepal’s banking and capital markets, Rayamajhi emphasized that it is time to rethink the potential of mutual funds for individual investors.
Rayamajhi, who has been leading NIC Asia Capital since Chaitra 10, 2075 BS, began his career at Ernst & Young Global as a senior financial analyst and later gained extensive experience in equity research, portfolio management, finance, treasury, and merchant banking across leading Nepalese financial institutions. Under his leadership, NIC Asia Capital has successfully operated six mutual funds and is now launching its seventh fund: the Equity-Linked Investment Scheme (ELIS).
The new fund is an open-ended, equity-based mutual fund, providing flexibility for investors to buy or redeem units at any time. Unlike previous funds that were largely focused on fixed-income instruments, this fund primarily invests in listed equities, with a small portion allocated to safe instruments like fixed deposits, offering the potential for higher returns while carrying moderate risk.
A notable feature of the fund is the introduction of a “Mini SIP,” allowing investors to start investing with as little as NPR 500, making it accessible to small investors, students, and self-employed individuals. Additionally, NIC Asia Capital is working to provide potential tax benefits for investments up to NPR 150,000, similar to schemes in India.
The fund also includes a reinvestment option, allowing dividends to be automatically reinvested to benefit from compounding effects over the long term, while still providing investors the choice to withdraw dividends if needed.
The initial public offering (IPO) for the new fund will be open from Shrawan 29 to Bhadra 2, with applications available online via Meroshare portal, through authorized banks and financial institutions, and via NIC Asia Bank’s ‘Mo Bank’ app. The fund has a target size of NPR 50 crore initially, expandable to NPR 100 crore depending on market demand. Of this, NPR 15 crore is guaranteed by NIC Asia Bank, with the remaining NPR 35 crore expected from individual investors.
Rayamajhi emphasized that the current market scenario, with declining bank interest rates, makes mutual funds an attractive alternative, offering higher potential returns than traditional savings or fixed deposits. He reassured investors that the phased investment strategy mitigates market volatility risks and that the fund’s professional management ensures a balanced and diversified portfolio.
According to Rayamajhi, NIC Asia Capital’s strong track record, transparent structure, and experienced fund management team make this new mutual fund a secure, flexible, and long-term investment solution. The fund aims to attract both first-time investors and those seeking portfolio diversification, offering a professional, investor-friendly, and high-potential financial product for the Nepalese market.
