Over a Dozen Mutual Funds Announce Dividends Early in Fiscal Year

More than a dozen mutual fund schemes have announced dividends for the last fiscal year, even as the first month of the current fiscal year is still underway. So far, only mutual funds have disclosed dividend proposals, continuing their trend of being the first to distribute returns in Nepal’s capital market.

Market demand is currently highest for mutual fund units. On Sunday, units of Sanima Growth Fund, NMB Sulav Investment Fund–2, Prabhu Smart Fund, and Sunrise Focused Equity Fund were among the most sought-after, although their dividend declarations are still pending.

Among those that have announced dividends are Sunrise Bluechip Fund, Shubhalaxmi Fund, Laxmi Value Fund–2, NIC Asia Flexi Cap Fund, NIC Asia Balanced Fund, Kumari Sunaulo Investment Scheme, NIC Asia Select–30, Siddhartha Investment Growth Scheme, NIBL Participation Fund, NIC Asia Dynamic Debt Fund, Garima Samriddhi Scheme, and NMB Saral Bachat Fund–E.

NMB Saral Bachat Fund–E has proposed the lowest return so far at 4.27 percent (including tax), while all others are offering over 5 percent. Sunrise Bluechip Fund leads the pack with a proposed 19 percent dividend, followed by Shubhalaxmi Fund at 16 percent, Laxmi Value Fund–2 at 15 percent, and NIC Asia Flexi Cap Fund at 10.10 percent.

Similarly, NIC Asia Balanced Fund has announced 9.90 percent, Kumari Sunaulo Investment Scheme 8.88 percent, Siddhartha Investment Growth Scheme 8 percent, NIBL Participation Fund 7 percent, NIC Asia Dynamic Debt Fund 5.55 percent, and Garima Samriddhi Scheme 5.10 percent.

Of the funds declaring dividends so far, six are closed-end and six are open-end schemes. According to fund managers, investors in open-end schemes can opt to reinvest their dividends by converting them into additional units at the adjusted net asset value.