Kathmandu. Nepal Life Capital Limited (NLIC) has announced a closed-ended MF scheme worth Rs 1.60 billion. Nepal Communist Party (NCP) Capital Limited is launching a closed-faced collective fund called ‘Nepal Jeevan Samriddhi Investment Yojana’.
According to credit rating agency ICRA Nepal, the fund plans to invest 70 to 78 percent of its funds in equity. Capital plans to invest the rest of the money in fixed-income bonds.
The scheme is expected to deliver an internal rate of return of 13 per cent over its 10-year tenure. The initial execution of the proposed plan could benefit from its potential entry into NEPSE at a time of large-scale sustainable sideway movement going on.
Moreover, the performance of the company’s own equity investment has been normal so far due to the carry-forward effect of the investment prior to the acquisition of the majority of the company by Nepal Life Insurance Company Limited (NLIC) in January 2022.
Therefore, it remains to be seen whether the company’s ability to maintain a healthy net asset value (NAV) growth trend for its first proposed mutual fund scheme, while adhering to its investment policy and regulatory guidelines.
Nepal Life Capital is a subsidiary of Life Insurance Company Limited. Insurance has 54 percent stake in the company. ICRA Nepal has committedly invested 14 percent of the total amount of the IPO to be invested.
Its ownership structure is made up of three directors (one director and two senior executives) of the parent insurance company, as well as two independent directors. The company has hired experienced fund supervisors and an efficient management team to monitor and manage the proposed fund plan. These individuals have extensive experience in various fields and hence the combination of such expertise will be positive for best fund management practices.
