KATHMANDU: NIC Asia Capital, a wholly owned subsidiary company of NIC Asia Bank, is going to issue its first mutual fund scheme ‘NIC Asia Growth Fund’ from January 16.

The Securities Board of Nepal had granted approval on December 26, as per a media release. NIC Asia Growth Fund is a seven-year close-ended mutual fund scheme having base size of Rs one billion, which can go up to Rs 1.25 billion in case of oversubscription. ICRA Nepal has provided ‘[ICRANP-IR] AMC Quality 3 (AMC)’ quality rating to NIC Asia Capital Ltd as fund manager and ‘[ICRANP–IR] A-’ to NIC Asia Bank as fund sponsor. This seven-year growth fund can be traded in the secondary market after being listed in the stock exchange.

Investors will be able to receive both dividend and capital gains from the mutual fund. Apart from this, at the time of maturity, investors will be refunded based on the final net asset value (NAV) of the scheme.

This scheme will be beneficial not only for experienced and matured investors, but also for new investors who do not have adequate knowledge about the stock market, the release adds.