January 19: Securities Board of Nepal (SEBON) has approved the proposal of Nepal Investment Mega Bank Limited (NIMBL) to increase the size of NIBL Sahabhagita Fund, which the bank claims to be Nepal’s first open-ended mutual fund scheme, to Rs 2 billion.

The scheme, which is operated under NIBL Mutual Fund, was first launched in 2019 with a size of Rs 200 million and has since grown to a milestone size of Rs 1 billion, NIMBL said in a statement.

Considering the high demand of investors, NIBL Ace Capital approached SEBON to increase the size of the scheme to Rs 2 Billion and gained approval from SEBON on January 1, the bank said in the statement published recently.

“Considering the developing capital market of Nepal, growing mutual fund industry and increasing investor in mutual fund and being Nepal's first open-ended scheme, this scheme has been successful in giving reasonable returns to its unit holders since the first year of its operation.”

Under this scheme, a total of 65.45 percent dividends have been distributed in three years of successful operations with an average annual return of 21.81 percent, added the statement.

The bank claimed that this scheme has so far yielded the highest returns compared to other open-ended mutual fund schemes.

Investors who want to invest in this scheme can invest by submitting duly filled forms available at all the branch offices of NIMB and NIBL Ace Capital and distribution agents. They can also apply online by visiting the website (www.niblcapital.com) of NIBL Ace capital.

Investors can participate in a Dividend Re-Investment Plan as well which eliminates constant logistical hassles and ensures investors don’t miss out an investment opportunity. With skilled and experienced fund managers, the scheme that started with a size of Rs 200 million and was able to a gain significant participation of investors due to its lucrative returns, and as of now it is has crossed a size of more than Rs 1 billion, added the statement.

This has made the scheme the largest ever open-ended scheme in the capital market of Nepal, the statement further said.