RBB Merchant Banking Limited is going to launch its first mutual fund scheme named ‘RBB Mutual Fund 1’. The scheme will operate under RBB Mutual Fund managed by the fund manager RBB Merchant Banking Limited.
Securities Board of Nepal (SEBON) has provided the approval on Ashad 10, 2078 BS for selling the scheme to the general public. The company had submitted the application to SEBON on Falgun 11, 2077 BS for the public offering. After receiving approval from SEBON, the fund manager will now issue 10 crore units of the scheme at a par value of Rs 10 per unit. Hence, the total issue size amounts to Rs 1 Arba.
Rastriya Banijya Bank is the promoter company of RBB Mutual Fund. Hence, the bank will purchase 15 percent or 1.5 crore units of the scheme. Hence, the general public can apply for the remaining 8.5 crore units worth Rs 85 crores.
RBB Mutual Fund is a close-ended mutual fund scheme. The units of the scheme will be listed and traded on Nepal Stock Exchange (NEPSE).
Investing in a mutual fund can be a good strategy for most investors as it offers decent returns at a low level of risk. Mutual funds are managed by professional experts and provide wide diversification.