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Shrawan 1 Reset: What the New Fiscal Year Changes for NAV Reporting

By Sandeep Kumar Chaudhary · July 6, 2026 · 5 min read · 1027 words

Before you can judge any of Nepal's 58 mutual fund schemes, the vocabulary has to click - NAV, premium, discount, dividend, open- versus closed-end. This is the plain-English version, grounded in the live market.

Start with NAV

Net asset value is the per-unit book value of a fund: everything it owns minus what it owes, divided by units outstanding. Every other term - premium, discount, yield - is measured against it. Once NAV makes sense, the rest of the market data below reads easily.

The market at a glance

• 58 schemes (44 closed-end, 14 open-end).
• 19 licensed fund houses.
• Average premium/discount to NAV: +316.90%.
• 29 schemes trading at a discount to NAV.
• Average expected dividend yield: 7.92%.

Deepest discount to NAV

PRSF (Prabhu Smart Fund, managed by Prabhu Capital) shows the widest discount at -11.88%. A discount means the unit trades below its disclosed asset value - the classic hunting ground for value investors, though a discount can also signal thin liquidity or a nearing maturity.

Highest expected dividend

PRSF (Prabhu Smart Fund) carries the highest expected distributable dividend in the market at 48.40%. Remember a high expected yield still depends on the fund realising and paying out those gains.

Largest fund by size

The biggest scheme by paid-up size is NIBLSF (NIBL Sahabhagita Fund) at Rs 9.50 arba (Rs 949.5 crore). Size brings liquidity and stability, though it can make a fund harder to move nimbly.

How we rank them

Every figure on Nepal's Capitals is origin-only: NAV and allocations come from each AMC's own monthly reports, market prices from the live NEPSE feed, and issue data from SEBON filings. There are no third-party aggregators and nothing is presented as NEPSE-derived that isn't. Rankings are recomputed each trading day, so what you read here reflects the most recent disclosure.

How to act on this

1. Decide your goal: capital growth (equity-heavy funds), income (higher expected dividend), or value (deeper discount to NAV).
2. Shortlist two or three schemes and compare them side by side on NAV, discount and portfolio.
3. Check the fund house and the scheme's maturity before committing.
4. Buy listed schemes on NEPSE via TMS, or open-end schemes directly at NAV.

The key terms, explained

If you are new to Nepali mutual funds, these are the words that do most of the work in this article:

• NAV (net asset value): the per-unit book value of a fund - the total worth of everything it owns minus what it owes, divided by units outstanding. Each fund house publishes it in a monthly report.
• LTP (last traded price): the price a listed, closed-end scheme last changed hands at on the Nepal Stock Exchange (NEPSE).
• Premium / discount to NAV: the gap between market price and NAV. Trading below NAV is a discount (you buy assets for less than book value); trading above is a premium.
• Distributable dividend: the share of realised gains and income a scheme is legally allowed to pay out to unit-holders.
• Closed-end vs open-end: a closed-end fund raises a fixed pool, lists on NEPSE and matures on a set date; an open-end fund issues and redeems units on demand at NAV, with no maturity.
• AUM / paid-up size: how much money the scheme manages - a rough gauge of its scale and liquidity, quoted in crore and arba (1 arba = 100 crore = Rs 1 billion).

Risks worth keeping in mind

Mutual funds are diversified, but they are not risk-free. A few things to weigh before you invest:

• Market risk: most Nepali schemes are equity-heavy, so their NAV rises and falls with NEPSE. A weak market drags the whole fund down.
• Concentration: funds from the same house often hold many of the same stocks, so owning several may diversify you less than it appears.
• Liquidity and the discount: a closed-end unit is only worth what a buyer will pay on NEPSE that day; thin trading can widen the discount when you want to sell.
• Maturity: at maturity the scheme winds up and pays out at NAV, so the discount typically narrows as that date nears - timing matters.
• Data lag: NAV is disclosed periodically, so the figure you see may trail the fund's real-time value between reports.

How to start investing in Nepali mutual funds

Getting started is more straightforward than most first-time investors expect. The practical path looks like this:

1. Open a demat account and BOID through any depository participant (a bank or broker), then register on MeroShare - this is your gateway to holding and applying for securities online.
2. Link a bank account for ASBA/C-ASBA so you can apply for new fund offerings and debenture issues directly from your bank.
3. Decide your style: buy a listed closed-end scheme any trading day on NEPSE through your broker's TMS, apply for an open-end scheme at NAV, or subscribe to a systematic plan (SIP) that invests a fixed amount every month.
4. Mind the costs and tax: factor in brokerage, and remember that dividends and capital gains are taxable in Nepal - check the current rates before you invest.

A mutual fund suits investors who want exposure to the share market without the time or expertise to pick individual stocks. Start with an amount you can leave invested, compare a handful of schemes on the numbers, and review your holdings each time the AMCs publish fresh monthly reports.

Disclaimer. This article is informational and is not investment advice or a recommendation to buy or sell any security. Every figure is sourced from primary AMC disclosures and SEBON filings and is recomputed each trading day. Confirm the latest numbers before acting.