Nabil Balanced Fund-1 NAV nudges to 13.31, yet Rs 11.88 at NEPSE

Nabil Balanced Fund-1, a closed-end 5 years mutual fund scheme managed by Nabil Investment Banking Limited, has reported an impressive growth of its net asset value (NAV) to Rs 13.31 for the month of Mangshir, up from 11.64 posted in Ashwin.

The significant growth the mutual fund witnessed over the month is attributed to the overall rally in the market, more than other factors such as better understanding of such schemes and the dividend the scheme is pledging, which is better than the pledged amount.

The scheme, which began with a total fund of Rs 50 crore, invested Rs 5.67 crore in listed shares, Rs 7.50 crore in fixed deposits in Mangshir.

The scheme recorded an earning of Rs 4.14 crore in Bhadra, up from Rs 3.36 crore reported in Shrawan.

However, the scheme is undervalued in the market as it been hovering around Rs 11 per unit, which is below NAV.

It closed at Rs 11.88 at NEPSE yesterday.

Lack of awareness among the investors among the benefits of mutual funds is one of the major reasons behind the underestimation of such schemes, according to analysts.

Among the two mutual funds listed in the share market, Siddhartha Investment Growth Scheme 1 (SIG1) is also trading below par due to similar reasons. - SSN