Mutual Fund is a pool of fund generally of several small investors. The collected fund is then invested in financial instruments such as Stocks, Bond/Debentures, Govt. Securities, and Fixed Deposits (as prescribed by Mutual Fund Regulation, 2067). Such investment decisions are made by a Fund Manager. Returns from the investment are shared proportionately among the investors on the basis of the units held by them. Thus, Mutual Fund is the most suitable investment vehicle for the small investors as it offers an opportunity to invest in a professionally managed diversified basket of securities at a relatively low cost.
Mutual Fund in Nepal is regulated by SEBON (www.sebon.gov.np). Mutual Fund in Nepal can be issued, supervised and managed only by entities/individuals fulfilling the criteria led in Mutual Fund Regulation, 2067 and as authorized by SEBON.
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