Best Open Ended Mutual Fund in Nepal

How Open-Ended Mutual Funds Work in Nepal

1. Buying and Selling Units:

Open-ended mutual funds allow you to buy or sell units at any time. There’s no need to wait for a specific period to invest or withdraw your money. This flexibility makes it convenient to invest or access your money whenever needed.

2. Professional Management:

Open-ended mutual funds are managed by experienced professionals who analyse market trends and make informed decisions about where to invest the fund’s assets, such as in stocks, bonds, or other instruments. This professional management reduces the need for individual investors to actively monitor the market or make complex investment decisions themselves.

3. Liquidity:

One of the key advantages of open-ended mutual funds is liquidity, which means you can access your money quickly when needed. In case of emergencies or unexpected expenses, you can easily sell your units and withdraw funds. Unlike investments in fixed deposits or in closed – ended fund, open-ended mutual funds provide more freedom to manage your cash flow.

4. Continuous NAV Updates:

The value of each unit, known as the Net Asset Value (NAV), is calculated daily. This allows you to monitor the performance of your investment. Regular NAV updates help you assess whether your money is growing and guide decisions on whether to add more investment or redeem units based on the fund's performance.

5. Role of the Securities Board of Nepal (SEBON):

The Securities Board of Nepal (SEBON) oversees mutual funds in Nepal to ensure they operate fairly and transparently. SEBON requires fund managers to follow strict regulations and provide regular updates on fund performance. This regulatory oversight builds investor confidence by ensuring that your investment is managed responsibly and with accountability.

How to Invest in Open-Ended Mutual Funds in Nepal

1. Direct Investment:

You can invest directly by visiting the mutual fund company's office. To do this, you’ll need to fill out an application form, provide a valid government-issued identification, and make the payment for the units you wish to purchase.

2. Investment via Online Platform:

Another convenient option is to invest through an online platform. For instance, NIC ASIA Capital’s online platform simplifies the process, allowing you to buy units directly from your phone or computer. This method is fast, user-friendly, and eliminates the need to visit an office, enabling you to complete your investment in just under a minute.

Also check out:

1. How to invest in Mutual Fund in Nepal
2. Best Mutual Fund in Nepal 2024

Frequently Asked Questions

1. What is the minimum investment amount for open-ended mutual funds in Nepal?

The minimum investment for open-ended mutual funds in Nepal is NPR 1,000

2.  Can I withdraw money from an open-ended fund anytime?

Yes, you can withdraw money from an open-ended fund at any time.

3.  Which is the first open-ended mutual fund in Nepal?

The first open-ended mutual fund in Nepal was NCM Mutual Fund 2050.

4.  How many open-ended mutual funds are there in Nepal?

Currently, there are seven open-ended mutual funds in Nepal.