Nepal’s capital market has been evolving rapidly in recent years, with growing investor participation and increasing demand for professionally managed investment solutions. As more individuals explore opportunities beyond traditional savings, structured investment products are gaining attention among both new and experienced investors.
To address this growing need, Nabil Investment Banking Limited has introduced NI 31, an open-end mutual fund scheme designed to provide investors with strategic exposure to Nepal’s equity market through a research-driven investment approach.
By combining professional portfolio management with a systematic stock selection process, NI 31 represents a step forward in promoting informed and disciplined investing in Nepal’s capital market.
Understanding NI 31
NI 31 is an open-end mutual fund scheme that focuses on investing in fundamentally strong companies listed in Nepal’s stock market. Unlike close-end mutual funds that operate for a fixed period, an open-end fund does not have a maturity period. This means investors can invest in the scheme for as long as they wish, offering greater flexibility and liquidity.
For this scheme, a separate dedicated investment model has been developed to identify fundamentally strong companies. The model conducts in-depth analysis of key financial metrics of all listed companies, helping to evaluate their financial health, growth potential, and long-term stability.
Based on the ranking generated by this model, the top 31 companies are selected for investment, which forms the foundation of the NI 31 portfolio.
A Dynamic Portfolio Strategy
One of the key strengths of NI 31 is its dynamic portfolio management approach. The list of selected companies is reviewed and reshuffled semiannually, ensuring that the portfolio remains aligned with changing market conditions and company performance.
This periodic review allows the fund managers to:
– Reassess the financial strength of companies
– Adjust the portfolio based on updated financial data
– Capture emerging opportunities in the market
– Maintain exposure to fundamentally strong companies
Such a systematic and disciplined approach helps ensure that the investment portfolio remains relevant and well-positioned for long-term growth.
Key Features of NI 31
- Research-Based Stock Selection: The investment model analyzes financial metrics across all listed companies to identify fundamentally strong businesses.
- Focused Portfolio of 31 Companies: The scheme selects the top 31 ranked companies based on the model’s analysis, creating a focused and high-quality equity portfolio.
- Semiannual Portfolio Review: The list of selected companies is reviewed and reshuffled every six months to maintain portfolio strength and market relevance.
- Open-End Investment Structure: Since NI 31 is an open-end mutual fund, there is no fixed maturity period, allowing investors to stay invested for the long term.
- Professional Fund Management: The scheme is managed by experienced investment professionals at Nabil Investment Banking Limited, ensuring that investment decisions are guided by research and expertise.
Why NI 31 Matters for Nepal’s Capital Market?
The introduction of structured investment schemes like NI 31 reflects the growing maturity of Nepal’s stock market. As financial literacy improves and investors seek diversified investment options, professionally managed mutual funds play an important role in strengthening the capital market ecosystem.
NI 31 contributes to this development by:
– Promoting research-based investing
– Encouraging a long-term investment culture
– Supporting greater investor participation
– Enhancing market efficiency and stability
Such initiatives help bridge the gap between retail investors and professional investment management.
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For more information’s/clarifications please contact us: 01-4511604, 01-4511733, 01-5970475 or email: marketing@nabilinvest.com.np or visit www.nabilinvest.com.np