Kathmandu. The first mutual fund in the insurance sector of Nepal is going to be launched in the fund promotion of Reliable Nepal Life Insurance.
The first mutual fund in the insurance sector of Nepal is going to be launched in the fund promotion of Reliable Nepal Life Insurance. The scheme manager of this mutual fund is Reliable Investment and Merchant Capital.
The initial public offering (IPO) of Reliable Samriddhi Yojana will be held from Baisakh 3 next year, 2082. Accordingly, a total of 100 million units at a face value of Rs 10, equivalent to a seed capital of Rs 1 billion, will be opened for sale.
Out of the total 15 million units, which will constitute 15 percent, the fund promoter Reliable Nepal Life will be allocated 14 million units, which will constitute 14 percent, and the scheme manager Reliable Capital will be allocated 1 million units, which will constitute 1 percent. The remaining 85 million units will be publicly issued.
Investors can apply for a minimum of 100 units and a maximum of 10 million units in this scheme. The issuance of this scheme will be held on Baisakh 7th after banking hours. If all the units are not sold by that period, arrangements have been made to apply until the banking hours of Baisakh 17.
Investors can apply for unit purchase online through all banks and financial institutions participating in the C-ASBA service licensed by the Nepal Securities Board and their branch offices, as well as CDSC’s Mero Share software.
The Reliable Samriddhi Yojana is a closed-end type. It is a 10-year plan. The units of this scheme can be traded after being listed on the Nepal Stock Exchange (NEPSE) after allotment.
Profit will be distributed based on the face value of the unit in proportion to the net profit earned by this scheme. This scheme provides a facility to deduct dividends from net profit and use the remaining amount for reinvestment of accumulated profit.
10-year annual return
Investors of Reliable Samriddhi Yojana are projected to get a return of 8.32 percent in the first year itself. The scheme, which is expected to deliver a return of 13.45 percent in the second year, is projected to deliver returns of 12.15 percent, 10.86 percent, 10.53 percent, 10.43 percent, 10.32 percent, 10.24 percent, 10.18 percent and 19.28 percent in the final year in the following years, respectively, according to the scheme manager. Under this scheme, investors are projected to receive an annual return of 11.5 percent over 10 years.
