NIC Asia Capital issues 100 million units of mutual fund

KATHMANDU, NOVEMBER 20: NIC Asia Capital Limited has today announced the trading of 100 million units of its new mutual fund-NIC Asia Growth Fund 2. Priced at Rs 10 per unit, the monetary value of the said number of units stands at Rs 1 billion. Of them, 15 percent i.e. 150 million units-  are reserved for NIC Asi Bank promoter of the Fund and the remaining 850 million are being sold to general investors.

They each can subscribe to a minimum of  100 to a maximum of 10 million units of mutual fund units. According to the company, the applications for the subscriptions should be submitted by November 23. If a sufficient number of general customers do not apply within the very date,  the application period will be extended up to December 4.

The general buyers can apply for the mutual fund units either through the members (banks and financial institutions) of ASBA licensed by the Security Board of Nepal (SEBON) or the apps of Mero Share.

Investors will be able to receive both dividends and capital gains from the closed-end mutual fund that carries a maturity period of seven years.  Apart from this, at the time of maturity, investors will be refunded based on the final Net Asset Value (NAV) of the scheme.