Frequently Asked Questions

A closed-end fund has a predetermined period and a set maturity date, and it is only available for subscription during the first offer period. Closed-end fund units can only be redeemed at maturity. Following the new fund offer, closed-end fund units are listed on a stock market and are traded there just like any other stock, enabling investors who choose to withdraw from the investment before maturity by selling their units on the exchange.

An open-ended mutual fund scheme known as an "open-end fund" is one that accepts subscriptions and redemptions on a continuous basis throughout the year. An open-ended scheme is perpetual and does not have any maturity date.

A New Fund Offer is used to issue open ended mutual funds. After the subscribers get their units, they are allowed to purchase more or sell their existing units to the fund. As the fund is available to purchase or sell any number of units during business hours, these funds are extremely liquid and pose no price risk to the investors. However, when purchasing or selling units, the fund may impose an exit fee.

Exit fee is a charge levied on investors for selling the units of the scheme. The charge is levied on gross value of total redemption before any charges are deducted. Exit fees are usually charged for exiting the investment too early and as such the percent charge reduces with time.

Dynamic Debt Fund’s exit fee

A Systematic Investment Plan (SIP) is a tool provided by mutual funds to investors to help them make disciplined investments. An investor may use the SIP facility to make multiple investment in the mutual fund scheme of their choice at regular pre-determined periods.

The pre-determined SIP periods might be weekly, monthly, quarterly, semi-annually, or yearly. By using the SIP method of investing, the investor invests in a time-bound manner without worrying about the market dynamics and stands to gain in the long run owing to average costs and the power of compounding.

NIC ASIA Dynamic Debt Fund is an open-ended mutual fund launched and managed by NIC ASIA Capital. It invests predominantly in high yield bonds and debentures which steadily creates extra ordinary wealth and beats the index in terms of risk adjusted returns.

An ad hoc purchase for dynamic debt fund can be done online as well as offline. For purchasing units online, a person can visit “https://nicddf.nicasiacapital.com/” and click on “Unit Purchase” after which the unit purchase agreement will pop up. All of the required details must be filed out and completed after which the customer’s provided bank account will be debited and the units bought will be credited in the Demat account within 2 working days of purchase.

For offline purchase, a person can visit any branch of NIC ASIA Capital and fill out a standard form after which payment needs to be done on applicable NAV for the day. The units will be credited within 2 working days of the purchase.

To enroll in NIC ASIA Dynamic Debt Fund’s SIP, the client needs to visit “https://nicddf.nicasiacapital.com/”  and click on “SIP Registration” after which the SIP registration form will pop up. All of the details need to be filled up by the client to successfully enroll in the plan. For periodic payments, the client can provide a standing instruction mandate to NIC ASIA Capital to automate the payment process or can manually credit NIC ASIA Capital’s bank account through online payment, cash payment or cheque payment on the date of the SIP payment.

Benefits of NIC ASIA Dynamic Debt Fund

• Steady dividends as well as capital gains
• Steady compounder of wealth
• A strong inflation hedge
• Investment with incredibly low volatility
• Prevents permanent impairment of capital

In order to meet various needs of investors “NIC ASIA Dynamic Debt Fund” have different investment options such as;

• Systematic Investment Plan (SIP)
• SIP is an investment tool which allows an investor to invest a specific amount regularly in the mutual fund scheme. NIC ASIA Dynamic Debt Fund SIP will allow the investors to save regularly with a smaller amount of investment, and likewise, an investor need not worry about the timing of the stock markets when investing, as they will benefit from both the bullish and bearish market trends.
• Under NIC ASIA Dynamic Debt Fund SIP plan, the investors are given an option to enroll into the SIP whereby regular interval payments from the investors are routed to NIC ASIA Dynamic Debt Fund’s designated bank account and, or by providing a standing instruction to the investors bank directing to release the amount in favor of NIC ASIA Dynamic Debt Fund SIP investments.

Growth / Dividend Option

In the case of Growth / Dividend Option, NIC ASIA Dynamic Debt Fund (NADDF) when declaring the annual dividends, the unitholders have the option from re-investing their dividends through two options:

• Growth Option – In the case of Growth Option, the unit holders’ yearly dividend will be reinvested back to the fund by purchasing additional units from the amount received as annual dividend

• Dividend Option – In the case of Dividend Option, the annual dividends announced will be paid out to unitholders at the time of dividend distribution

SIP's first advantage is that it instills financial discipline in your life. The second benefit is that you may make regular investments without being concerned about the state of the market, the level of an index, etc. For instance, you must find the time to invest the predetermined amount that you are required to do so in any mutual fund scheme each month. You might worry about the state of the market and consider delaying your investments when you have the time. If things are going well, you could even be considering increasing your investment. All of these problems are solved with SIP. Without your involvement, the money is automatically invested on a monthly basis in a plan.

SIP’s can be enrolled in the following ways:

• Visit NIC ASIA Capital,  an SIP Registration form is needed to be filled out to enroll into NADDF SIP
• Log in to https://nicddf.nicasiacapital.com/ and fill out the SIP Registration details

Any Nepali person or company that is registered there and has a working demat account is eligible to choose and sign up for the NIC ASIA Dynamic Debt SIP.

You can start investing in most mutual fund schemes via SIP with a minimum of Rs 1000.

You can, indeed. Although the most common SIP involves investing a set sum each month, investors can alter how they allocate funds through SIPs. To personalize their SIP investments, investors can get in touch with NIC ASIA Capital Limited at (info@nicasiacapital.com)

Following the completion of SIP facility registration, SIP payments may be made on the associated due dates by:

• Online medium (Connect IPS, Esewa, Khalti and NIC ASIA MoBank)
• Visiting NIC ASIA Capital counters (Head Office, Anamnagar branch, Chabahil branch, Kirtipur branch counter

Due to a variety of circumstances, an investor may choose to pay for a missed SIP on any day before the next scheduled SIP date. In this case, we will buy the SIP units on the day the funds are paid into our bank account.

The investor can change their SIP due dates and amounts online by visiting NIC ASIA Capital Limited or emailing the SIP modification form found on our website to info@nicasiacapital.com.

No, after canceling their SIP, investors can only sell the units held in their names or the names of their institutions. The units acquired through a SIP facility must be kept locked until the investor cancels the SIP facility, and they can only be sold following SIP cancellation.

The investor can terminate their SIP facility online by visiting NIC ASIA Capital Limited or emailing the SIP cancellation form found on our website to info@nicasiacapital.com

There are no charges that will be charged to the investor when they cancel their SIP facility.

The "NIC ASIA Dynamic Debt Fund" units won't be listed on the Nepal Stock Exchange (NEPSE) or any other stock exchange, hence trading will be managed by the Fund Manager instead (NIC ASIA Capital Limited).

The Purchase and Redemption will be facilitated through the Fund Manager (NIC ASIA Capital Limited).

You can log into the website of NIC ASIA Capital Limited (www.nicasiacapital.com) and click on https:// https://nicddf.nicasiacapital.com/  to purchase the units of NIC ASIA Dynamic Debt Fund

Sales price is the cost, or NAV, a unit holder pays to participate in an open-ended plan. The price or NAV at which an open-ended plan buys or redeems its units from unitholders is known as the repurchase or redemption price. If appropriate, exit load may be included.

There is no lock-in period of investments made in NIC ASIA Dynamic Debt Fund. The trading of the units shall be commenced from a maximum 3 months from the date of allotment of units.

The following charges shall be applicable to the investors to purchase/redeem the units of “NIC ASIA Dynamic Debt Fund”

Entry Load (Applicable for Re-purchase of Units): None.

Exit Load (Applicable for Redemption of Units):

DP Fee                         : Applicable charges as per CDS Bylaws.

SEBON Fee                  : Applicable fee as per Mutual Fund Regulations and Guidelines.

Capital Gain Tax            : Applicable Tax as per tax rules and regulation.

A Portfolio Management Service is a platform created for individuals and institutions to provide customized solutions for their financial investment needs. Three broad types of investment management services can be offered: non-discretionary portfolios, discretionary portfolios and income guaranteed fund (IGF).

Portfolio Management Services are regulated by Securities and Exchange Board of Nepal (SEBON) under Merchant Banking Regulations.

In a discretionary portfolio management service, the portfolio manager manages each client's assets and securities on an individual, independent basis in line with the client's demands.

In non-discretionary portfolio management, the investment manager merely works as a broker to execute trades based on the client's instructions. The manager also acts as an advisor, but the client makes the final decision regarding buying and selling of securities.

A demat account allows investors to store shares and securities electronically. This type of account is also known as a dematerialised account. It also allows individuals to keep track of all their assets in stocks, bonds, and mutual funds in one convenient location.

A depository is an institution that holds your assets for you. In merchant banking, a depository participant is the party which holds the stocks, bonds and units of mutual funds safely in an electronic form. Nepal has only one primary depository which is CDSC. All other merchant bankers, brokers or other institutions licensed with the ability to open DP accounts are directly linked with CDSC and can act as a depository participant.

Understanding the link between CDSC, Depository Participants and You

CDSC is the one and only primary depository in Nepal related to financial securities. It houses all the information on stocks, bonds and units of mutual fund and their beneficiaries. This repository of data is provided to CDSC by its depository participants. When you open a demat account with a DP, it collects information relating to you and your holdings, which is transmitted to CDSC’s central server. A depository participant in essence acts as a mediator between CSDC and investors. When you buy or sell security, the assets need to be transferred from one account to another, and as such the accounts are settled i.e., debit/credited centrally in CDSC’s server.

Requirements for Opening a Demat Account:

• Fill up a standard Demat Account Opening form online or offline including required signatures and sitemaps.
• Provide a copy of NRN certificate in the case of Non-Residential Nepalese.
• Provide a copy of guardianship certificate in the case of minor.
• Provide a copy of Citizenship Certificate (both sides)
• Provide passport size photo (Photo of both minor and guardian in case of a minor)