Top 5 Mutual Funds in Nepal 2026
NAV, Returns & How to Invest
A data-driven guide comparing Nepal's best-performing mutual fund schemes — with live NAV benchmarks, dividend history, and a step-by-step investment walkthrough via MeroShare.
Table of Contents
- Nepal Mutual Fund Market Overview 2026
- Quick Comparison Table — Top 5 Funds
- 1. Siddhartha Equity Fund (SEF)
- 2. NIBL Sahabhagita Fund (NSF)
- 3. NIC Asia Growth Fund (NICGF)
- 4. Siddhartha Systematic Investment Scheme (SSIS)
- 5. Nabil Balanced Fund (NBI)
- How to Invest in Mutual Funds in Nepal (Step-by-Step)
- Risks to Know Before You Invest
- FAQs
Nepal's Mutual Fund Industry in 2026
Nepal's mutual fund industry has entered a new era of maturity. By mid-2026, total assets under management (AUM) across all SEBON-regulated schemes has surpassed NPR 61 billion, covering roughly 54 active schemes — up from just a handful a decade ago. A growing middle class, rising financial literacy, and the accessibility of digital platforms like MeroShare have all contributed to this rapid expansion.
All mutual funds in Nepal operate under the Mutual Fund Regulation, 2067 (2010) enforced by the Securities Board of Nepal (SEBON). Funds are managed by licensed Asset Management Companies (AMCs). The Net Asset Value (NAV) — the per-unit price of a fund — is updated daily for open-ended funds and weekly for closed-ended funds, offering full transparency to investors.
Equity-oriented funds have historically delivered 12–18% average annual returns during bull cycles, significantly outpacing fixed deposits (8–10%). However, year-to-year variability is high — exceptional years can yield 30%+ while bear markets can push returns to -15% to -20%. This guide helps you navigate those choices wisely.
Quick Comparison — Top 5 Mutual Funds Nepal 2026
| # | Fund Name | Ticker | Type | NAV (Jun 2026) | Fund Size | Best For |
|---|---|---|---|---|---|---|
| 1 | Siddhartha Equity Fund | SEF | Closed-end Equity | ~NPR 14–17 | NPR 1.5B | Long-term wealth |
| 2 | NIBL Sahabhagita Fund | NSF | Open-end Equity | ~NPR 10.11 | NPR 2B+ | SIP & liquidity |
| 3 | NIC Asia Growth Fund | NICGF | Closed-end Equity | ~NPR 12–15 | NPR 1.16B | Growth investors |
| 4 | Siddhartha Systematic Investment Scheme | SSIS | Open-end (SIP) | ~NPR 10–12 | NPR 1B+ | Monthly SIP savers |
| 5 | Nabil Balanced Fund (NBI) | NBI | Closed-end Hybrid | ~NPR 11–13 | NPR 1.2B | Moderate risk |
* NAV values are approximate benchmarks as of June 2026. Always verify current NAV on ShareSansar or your AMC's official portal before investing.
Siddhartha Equity Fund (SEF)
Siddhartha Equity Fund
SEF Closed-EndManaged by Siddhartha Capital Limited (SCL) — Nepal's first SEBON-registered mutual fund manager — SEF is a closed-ended, equity-oriented scheme listed on NEPSE. The fund primarily invests in diversified equity instruments across banking, hydropower, and insurance sectors. SCL's track record is exceptional: its previously redeemed SIGS-1 scheme delivered an outstanding 48.5% annual return over its lifecycle, while SEOS delivered 13.60%.
| Detail | Information |
|---|---|
| Fund Manager | Siddhartha Capital Limited (SCL) |
| Listed on NEPSE | 23rd Kartik 2074 (November 2017) |
| Maturity Date | 22nd Kartik 2084 (November 2027) |
| Investment Focus | Equity, equity-related instruments & fixed income |
| How to Buy | Secondary market via NEPSE broker |
| NAV Updates | Weekly (closed-end fund) |
| SEBON Registered | Yes — Siddhartha Mutual Fund |
✔ Pros
- Proven track record from SCL
- Strong NAV growth momentum in 2026
- Professionally diversified portfolio
- Maturing 2027 — potential exit opportunity
✖ Cons
- Closed-end — needs a broker to buy/sell
- Market price may trade at discount to NAV
- Maturing soon — limited upside window
NIBL Sahabhagita Fund (NSF)
NIBL Sahabhagita Fund
NSF Open-End SIP AvailableNepal's premier open-ended mutual fund, managed by NIMB Ace Capital Limited (wholly owned by Nepal Investment Mega Bank). NIBL Sahabhagita Fund holds the distinction of being the first open-ended fund launched after SEBON's Mutual Fund Regulations 2067 and Guidelines 2069 came into effect. It is ideal for investors seeking liquidity — units can be bought or redeemed at any time at the current NAV. It famously distributed a jaw-dropping 50% dividend in a prior fiscal year, making it Nepal's most talked-about retail fund.
| Detail | Information |
|---|---|
| Fund Manager | NIMB Ace Capital Limited |
| Sponsor | Nepal Investment Mega Bank (NIMB) |
| Fund Type | Open-Ended Equity |
| SIP Available | Yes — monthly contributions accepted |
| How to Buy | NIMB Ace Capital branches/online, or AMC agents |
| Redemption | Anytime at current NAV (T+3 settlement) |
| Ideal Horizon | 5–20 years (long-term equity compounding) |
✔ Pros
- Nepal's most liquid mutual fund
- SIP from as low as NPR 1,000/month
- Daily NAV transparency
- Record-breaking dividend history
✖ Cons
- NAV close to face value — limited capital gain currently
- Heavy equity exposure — volatile in bear markets
- Management fees apply on AUM
NIC Asia Growth Fund (NICGF)
NIC Asia Growth Fund
NICGF Closed-EndManaged by NIC Asia Capital Limited, the NICGF is an equity-growth-oriented, closed-ended fund listed on NEPSE. The fund concentrates on maximizing capital appreciation through strategic investment in NEPSE-listed companies. NIC Asia Capital is one of Nepal's most active and reputed AMCs, known for disciplined portfolio management across commercial banking, hydropower, and microfinance sectors. The fund is available for trading through any NEPSE-licensed broker.
| Detail | Information |
|---|---|
| Fund Manager | NIC Asia Capital Limited |
| Sponsor | NIC Asia Bank Limited |
| Investment Objective | Capital appreciation through equity investment |
| How to Buy/Sell | NEPSE secondary market via broker |
| NAV Updates | Weekly (SEBON mandate) |
| Risk Level | Moderate to High |
✔ Pros
- Credible, experienced AMC
- Solid NEPSE-listed equity portfolio
- Potential to trade at NAV premium
✖ Cons
- Exit requires selling on NEPSE
- Sector concentration risk (banking-heavy)
- Liquidity depends on trading volume
Siddhartha Systematic Investment Scheme (SSIS)
Siddhartha Systematic Investment Scheme
SSIS Open-End SIPSSIS is Siddhartha Capital's answer to the growing demand for disciplined, affordable, long-term investing. As an open-ended SIP scheme, it allows investors to contribute fixed amounts monthly — making it ideal for salaried employees, students, and anyone starting their investment journey. SCL publishes NAV updates daily, ensuring transparency. The scheme was flagged among Nepal's top recommended SIP options for balanced risk profiles in 2026 financial analysis.
| Detail | Information |
|---|---|
| Fund Manager | Siddhartha Capital Limited |
| Fund Type | Open-Ended Systematic Investment Plan |
| Min. SIP Amount | NPR 1,000 per month |
| Investment Style | Hybrid — equity + debt allocation |
| Liquidity | High — redeem units at NAV any time |
| Risk Level | Moderate (Balanced) |
✔ Pros
- Start with just NPR 1,000/month
- Rupee-cost averaging reduces market timing risk
- Managed by Nepal's most trusted AMC
- Good for 7–15 year horizons
✖ Cons
- Lower short-term returns than pure equity
- Annual SIP commitments recommended
Nabil Balanced Fund (NBI)
Nabil Balanced Fund
NBI Closed-EndManaged by Nabil Investment Banking Limited, the Nabil Balanced Fund offers a hybrid approach — blending equity and fixed-income instruments to reduce downside risk while maintaining growth potential. For investors uncomfortable with pure equity volatility but wanting returns above fixed deposits, NBI represents a smart middle ground. Nabil Investment is consistently recognized as one of Nepal's top-tier merchant bankers, with a strong compliance record under SEBON.
| Detail | Information |
|---|---|
| Fund Manager | Nabil Investment Banking Limited |
| Sponsor | Nabil Bank Limited |
| Portfolio Blend | ~60% Equity / ~40% Fixed Income |
| How to Buy | NEPSE secondary market via broker |
| Dividend History | Regular cash dividends per fiscal year |
| Ideal For | Conservative to moderate risk investors |
✔ Pros
- Lower volatility than pure equity funds
- Regular dividend distributions
- Backed by Nabil Bank's strong reputation
- Good for 3–7 year investment horizons
✖ Cons
- Lower upside potential than equity-only funds
- Requires broker account to trade
How to Invest in Mutual Funds in Nepal (2026)
Investing in Nepalese mutual funds is more accessible than ever. Thanks to MeroShare — the CDSC-managed digital investment portal — you can apply for mutual fund IPOs, track your holdings, and manage your portfolio entirely online. Here is the complete process:
Open a DEMAT / BOID Account
Visit any SEBON-licensed broker or merchant bank (e.g., Nabil Invest, Global IME Capital, NIC Asia Capital, Siddhartha Capital) with your citizenship certificate, PAN card, and one passport-size photo. The one-time fee is approximately NPR 300–500, and processing takes 2–3 working days.
Register on MeroShare
Go to meroshare.cdsc.com.np or download the MeroShare mobile app. Click "Register," select your Depository Participant (DP), enter your 16-digit BOID number, date of birth, and registered mobile number. Set a password and verify via OTP. Annual maintenance: NPR 50 service charge + NPR 100 DEMAT fee.
Apply for a Mutual Fund IPO (Primary Market)
When a new mutual fund launches its IPO, log in to MeroShare → click "ASBA" → "Apply for IPO" → select the mutual fund scheme → enter the number of units you want → confirm with your bank. Minimum application is typically NPR 1,000 (10 units at NPR 100 face value). Allotment results are published within 5–7 business days of closing.
Buy Closed-End Funds on NEPSE (Secondary Market)
For funds like SEF, NICGF, and NBI already listed on NEPSE, you need a trading account with a NEPSE-licensed broker. Open a TMS (Trading Management System) account, fund your broker's pool account, and place a buy order for the fund's ticker symbol. Brokerage commission ranges from 0.36–0.60%.
Invest in Open-End Funds Directly via AMC
For open-ended funds (NIBL Sahabhagita, SSIS), visit the AMC's website or branch directly. You can also set up a monthly SIP starting from NPR 1,000. Open-ended fund units are bought and sold at the daily NAV — no broker required. Redemption proceeds are typically credited within T+3 working days.
Track Performance & NAV
Monitor your portfolio on MeroShare, or check daily NAV updates on ShareSansar, Investopaper, or the AMC's official website. Review your fund's annual report each fiscal year (ending mid-July). Capital gains on mutual fund units held over 365 days are taxed at 5%; under 365 days at 7.5%.
Risks to Know Before You Invest
Mutual fund investments are subject to market risks. Before committing capital, understand these Nepal-specific risk factors:
⚠️ Key Risks for Nepali Mutual Fund Investors
- Market (NEPSE) Volatility: Most funds are equity-heavy. Nepal's stock market can swing sharply — political events, monetary policy changes, and liquidity conditions all drive the NEPSE index. Returns can be negative in bear years (-15% to -20%).
- Concentration Risk: A significant finding from 2026 industry analysis reveals that most Nepali funds hold nearly identical portfolios — dominated by Everest Bank, Sanima Bank, Mountain Energy Nepal, and National Life Insurance. True diversification is limited in Nepal's shallow capital market.
- Liquidity Risk: Closed-end funds depend on secondary market trading. Low trading volumes can make it difficult to exit at a fair price. Open-end funds solve this — units can be redeemed at NAV any business day.
- Management Risk: Fund performance depends heavily on the AMC's decision-making quality. Research the fund manager's history and past scheme performance before investing.
- Political & Macroeconomic Risk: Nepal's investment climate is sensitive to political events. The September 2025 protests caused NPR 23 billion in insured losses and pushed the World Bank to cut Nepal's growth forecast from 5% to 2.1%, sharply affecting NEPSE.
- NAV Publication Delays: SEBON's regulatory framework is robust, but operational issues such as delays in NAV publication and infrequent disclosures persist across some AMCs.
Mutual Fund FAQs — Nepal 2026
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. NAV figures cited are approximate benchmarks as of June 2026 and are subject to daily market fluctuations. Mutual fund investments are subject to market risks. Always read the SEBON-approved fund offer document carefully before investing, and consider consulting a licensed financial advisor. Past performance is not a guarantee of future returns.
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