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Kathmandu Saturday January 12, 2002 Paush 28, 2058.
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Pvt sector interested in new
mutual fund
Post Report
KATHMANDU, Jan 11: At a time when the only
mutual fund of the country has not been able to perform as per initial expectations, two
private sectors parties have put up applications at the Securities Board (SEBO) seeking
permission for the operation of a new mutual fund.
An official at the SEBO informed The Kathmandu
Post that two private parties have shown interest to initiate a mutual fund. "The
parties have put up applications, which will be studied in detail. The study presently is
only at a preliminary stage," said Damber Dhungel, Chairman of the regulatory board.
This is the first time that any private party
has shown interest to operate a mutual fund. Nepal Industrial Development Corporation
(NIDC) was the first to initiated a mutual fund scheme in Nepal.
The state-owned institution had issued
irredeemable NCM mutual fund of Rs 500 million in 1994. However, following the stock
market crash in the mid-nineties, the mutual fund was later changed to a redeemable one in
1996 with a maturity of five years. The central bank and NIDC had to pump in Rs 60 million
then to revive the mutual fund.
Mutual fund, one of the financial instruments,
accumulates small savings and channels it into large investment. However, the portfolio of
investment for any investor is diversified thus minimising the risks associated with his
investment.
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