Mega Capital Markets Limited has published an offer letter to issue the "Mega Mutual Fund 1." The issue will open on 4th Bhadra and close on 10th Bhadra, 2078. If not subscribed fully by the early closing date, the issue can be extended till Bhadra 18.
10 crore units will be issued at a par value of Rs. 10 per unit. 15% of the total units have been allocated to the fund promoter Mega Bank limited.
"Mega Mutual Fund 1" is a closed-end fund, meaning it can be traded in NEPSE. The fund has a maturity period of 10 years. Applicants can apply for a minimum of 100 units to a maximum of 1 crore units.
Also Read:
Everything You need to know about "Mutual Funds in Nepal"
Why you need to apply every IPO that is issued?
There are a total of 24 closed-end and 3 open-ended mutual funds in Nepal. All mutual funds are issued at a par value of Rs. 10 per share. A mutual fund is a professionally managed pool of money collected from investors to invest in securities. Securities mean investment assets like stocks, bonds, money market instruments, etc. Thus, after the collection of the fund, the fund managers invest in stocks, debentures, IPOs, and fixed deposits.
Based on the performance of their investment, the NAV of the funds is determined.Moreover, there is another measure of a mutual fund's performance: its LTP. Investors closely observe the investment areas of the funds and the profitability. They then determine the market price of the fund via a free-market mechanism of supply and demand.
Other Mutual Funds:
Nabil Investment Bank Limited issues Mutual Fund (Nabil Balanced Fund - 3)
Madhya Bhotekoshi Hydropower to issue IPO to general public
