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Performance of Mutual Funds - Aswin, 2070

Moderators: बिमलमान, Dilbert.

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Moderator
Registered: Jun 2013
Posts: 574
Location: Kathmandu, Nepal
According to offer letter of SGIS1, they are planning on giving 7% dividend first year and 1% increment each year and have targeted 17% NAV when the fund matures. Let's see what they will do, it's going to be a year in February, 2014.
Member
Registered: Jun 2013
Posts: 195
Thank you Rajesh ji for crystal clear.
Member
Registered: Jun 2013
Posts: 105
FREEMAN ji,

I have written some comments already about Mutual Funds (please visit: www.sharenepalcomments.wordpress.com).

Mutual Funds are long term investment designed for tiny investors, who lack skills and/or time to manage their investment. Also, the amount could be too small to invest in shares, so they invest in MFs.

Siddartha and Nabil MFs are not directly comparable. Siddarha is a growth fund and puts its money in share market, takes a bit higher risk and also offers opportunity for higher return. Nabil MF is a balanced fund and puts its money partly in share market and partly in bonds and other less risky instruments. It is less risky and may offer less return.

Another factor is Siddartha MF was started nearly 4 months earlier than Nabil MF. Therefore, the return in investment (NAV) till today differs.

My advice is that if you could manage your investment yourself, Mutual Funds are not for you. And, also if you like to invest sizable amount in the market, again it is not for you. If you have no time or you like to invest small amount of money and you like to forget about this till the MFs get maturity, then MFs could be better options.

I do not think that MFs give dividend annually. But, I am not sure.

Finally, I believe that between Siddartha and Nabil MFs, it depends on individuals choice. Performance-wise, both are good. For learning experience, I have put some money in both schemes, but I will wait till maturity. Selling MF units is just a window available if we need cash urgently in situations of emergency or the MF is sinking. But, here we treat them as regular shares. We lack proper understanding of MF.

I hope, I have not made you confused. Thank you!
Member
Registered: Jun 2013
Posts: 195
Rajesh ji,

Last Traded Price of NBF1=Rs9 (discounted price) and SIGS1=Rs 11(premium price). I suppose NAV 10 as par value.
Which is better to buy?I prefer SIGS1 over NBF1. Is this wise decision?
Can we expect divided this year from these mutual fund?

Please put some insights.

Regards
FREEMAN
Member
Registered: Jun 2013
Posts: 105
Mutual Funds: NAV

Siddartha: Aswin 12.45, Bhadra 11.87, Increase 0.58, Percentage 4.88%

Nabil: Aswin 11.33, Bhadra 10.74, Increase 0.59, Percentage 5.49%

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