Mutual funds are considered a cheaper and more convenient way to invest in the stock market. You can invest in a mutual fund with Rs 1000 for 100 units.
How to buy Mutual Funds in Nepal | Invest in 2023
You can easily buy or invest in a mutual fund in Nepal even if you are living abroad, and you can invest using the following ways:
- Through IPO (Initial Public Offering),
- Secondary Market (NEPSE in Nepal) and,
- Fund Manager (Systematic Investment Fund)
Buy Mutual Funds from IPO
You can purchase mutual funds during its initial public offering, and you can buy these at face value of Rs 10, and the minimum purchase unit is 100 units.
So, you will need to invest at least Rs 1000.
- Login to Meroshare,
- Click on “MY ASBA,”
- Choose Mutual Fund and Click Apply,
- Enter Amount (Minimum Rs1000),
- Click on Proceed.
The competition for Mutual Funds in IPO is low, so that you will get many units. As of 16th Feb 2023, there is no IPO for Mutual Funds.
Prabhu Smart Fund by Prabhu Capital is the Upcoming IPO of Mutual Funds in Nepal 2023. It was approved by SEBON on 19th Poush 2079. They are selling 80,000,000 units with a face value of Rs10, and the fund manager will collect Rs 800,000,000 in total from this IPO.
Nepal Stock Market (NEPSE) – Secondary Market
The way to invest in close-ended Mutual funds is through the secondary market. Once the IPO is over, the units are listed on NEPSE and can be traded like a company’s stock.
You must have a Brokerage Account to Buy mutual funds from the secondary market in Nepal.
As of 15th February 2023, 31 close-ended mutual funds are listed in NEPSE.
Fund Manager (Systematic Investment Fund)
If you are looking for a long-term investment with small amounts, you can start SIP in Nepal. In this mutual fund scheme, you buy directly from the fund manager.
These stocks are not listed on Nepse or have IPOs.
You can purchase as many units as you can regularly (monthly, quarterly, semi-annually, and annually).
Here is NMB Cpaital’s NMB Saral Bachat Fund – E SIP Registration Process for Nepali, including those living abroad, like UAE, Qatar, Malaysia, Australia, the US, and more.
Even if you work abroad, you can invest in Mutual Funds in Nepal through IPO or SIP.
Open Ended Mutual Funds in Nepal in 2023
|Symbol||Mutual Fund||Fund Size|
|Nabil Flexi Cap Fund||NIBL Sahabhagita Fund||1,076,794,010|
|NADDF||NIC Asia Dynamic Debt Fund||516,967,980|
|SSIS||Siddhartha Systematic Investment Scheme||302,890,609|
|NMBSBF||NIC Asia Dynamic Debt Fund||722,806,085|
|SLK||Shubha Laxmi Kosh||270,788,400|
|NFCF||Nabil Flexi Cap Fund||462,617,500|
Documents and Requirements to Invest in Mutual Funds
The documents and requirements you need to fulfill while buying a mutual fund in Nepal are a DEMAT, Meroshare, and Nepali Bank account with a digital photo of your Citizenship and meroshare details.
If you plan to trade in Secondary Market, you will need a Brokerage account.
You do not need a broker account for IPO and Open Ended (SIP).
If you work abroad, you can use your remittance account to invest in Mutual Fund.
who can invest in mutual funds?
Nepalese with a Demat, Meroshare and a Bank account can invest in Mutual funds in Nepal.
Who invests in mutual funds?
People who want to invest in Stock Market but have less knowledge or money invest in mutual funds as mutual funds are cheap compared to a company’s stock.
How much amount needed to invest in Mutual Fund in Nepal?
The minimum amount needed to buy a mutual fund in Nepal is Rs 1000, which will get you about 100 units if you buy through IPO. The prices may differ in Open Ended and Secondary markets.
How much to invest in mutual funds per month?
There is no magic number on how much you should invest, depending on your goals and the risk you can take.
Can Nepali working abroad invest in Mutual Funds?
Yes, if you are working abroad, you can still invest. You will need a DEMAT, Meroshare, and a bank account (remittance).