KATHMANDU: Nepal Life Capital Limited, a sister company of Nepal Life, has reaffirmed its asset management rating AMC Quality 3 for its Rs 2 billion mutual investment fund. According to the rating agency, ICRA Nepal, the company’s asset management capacity is adequate. <\/p>\n
Due to limited experience in the field of collective fund management and the sluggish condition of the stock market, the net asset value of this investment scheme has fallen below the face value per unit as of mid-August 2026. According to a press release published by the rating agency, ICRA Nepal, the net worth of the investment scheme has come down to Rs. 9.8. <\/p>\n
Under this scheme, which was launched in February, the capital has mobilized 75 percent or Rs 1.5 billion from the fund. The remaining 25 percent of the amount has been kept safe so that it can be used in case of further decline in the stock market. Nepal Life Insurance has invested 14 percent i.e. Rs 280 million in the fund of Nepal Life Capital, which has 54 percent capital investment. <\/p>\n
It has invested about 17 percent in the microfinance sector, about 16 percent in the insurance sector and about 15 percent in the production and processing sector. ICRA Nepal has stated that the performance of these sectors will have a direct impact on the net asset value of the fund in the coming days as a large part of the investment i.e. about 50 percent of the investment is concentrated in limited areas. <\/p>\n
Due to the contraction in the interest rate of bank deposits and the low turnover of bonds in the secondary market, the fund has invested only about 1 percent of its total assets, or Rs 11 million, in fixed-income instruments, which has limited its options for diversification in terms of investment risk and return. Due to the limitations of the domestic bond market and the pressure on the interest rate of bank deposits, the fund has been able to invest only about one percent of its total assets in fixed income instruments. This has created some limitations in its ability to diversify investments and manage risk. <\/p>\n
ICRA Nepal has pointed out in a press release that the narrow scope of the capital market, the lack of stable income sources and the risk of high investment in certain sectors are there. In the statement, ICRA Nepal wrote, “The options for investment diversification in the Nepal Stock Exchange are still limited. On the one hand, the domestic bond market has not been expanded, and on the other hand, the financial sector remains dominant. This is challenging to maintain flexibility in investments and to help fund managers diversify investments in an appropriate manner and balance new risks in fund management. ‘<\/p>\n
According to ICRA Nepal, these closed-end schemes are generally traded at a discount of around 6 to 12 percent compared to the net asset value per unit. Also, the average 12-month turnover volume of Nepal Life Samriddhi Yojana is also very low, which is only 0.57 percent of the total fund size.<\/p>\n","protected":false},"excerpt":{"rendered":"
KATHMANDU: Nepal Life Capital Limited, a sister company of Nepal Life, has reaffirmed its asset management rating AMC Quality 3 for its Rs 2 billion mutual investment fund. According to the rating agency, ICRA Nepal, the company’s asset management capacity is adequate. Due to limited experience in the field of collective fund management and the […]<\/p>\n","protected":false},"author":5,"featured_media":274367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45152,45137,45159],"tags":[],"class_list":["post-321078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-life-insurance-en","category-mutual-fund-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/321078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=321078"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/321078\/revisions"}],"predecessor-version":[{"id":321079,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/321078\/revisions\/321079"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/274367"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=321078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=321078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=321078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}