just the right fund - megacapitalmarkets.com
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JUST THE RIGHT FUND
MUTUAL
FUND
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Presenting Mega Mutual Fund-1 One of a kind
fund which targets long term capital appreciation
investing predominantly in equity and equity
related instruments and partly in fixed income
securities. The fund’s philosophy is not to mirror
the NEPSE but to generate profit by diversifying
investment in just the right number of companies
to make sure that the fund’s return beats the
market returns - ALWAYS.
That is why, we call it Just the right fund not just
for new entrants but for share market veterans as
well!
To generate long term capital appreciation by
investing predominantly in equity and equity
related instruments and fixed income securities as
allowed by prevailing rules of SEBON.
FUNDSUPERVISORS
Worked in different capacities in auditing,
banking, consultancy for the past 30
years. He is currently involved as a
financial sector advisor for various
national and international projects.
Anal Raj BhattaraiCA
Worked as a Professor for Law and Legal
Practices from 2031 BS, appointed as
Attorney General in the year 2066-67 and
has more than 47 years of academic
appointed as a judge of supreme court
from 2067 - 2070.
Bharat Bahadur KarkiPhD. (Commercial Law)
Worked as Executive Director with 30
years of experience in Nepal Rastra Bank
in Regulation and supervision, foreign
exchange and financial management
department.
Sarita AdhikariMBA
Mr. Pandey has worked for the
Government of Nepal and has over 24
years of experience working in several
ministries including Local Development,
General Administration, Information and
Communication, Labour and Transport
Management and National Planning
Commission. He also served as the
chairman of NTC, Sajha Yatayat, Radio
Broadcasting and Development
Committee.
Yubraj PandeyMA (Economics)
Worked as a Professor of Economics
(Tribhuwan University) for more than four
decades. Dr. Pyakurel holds a PhD. and
has completed several post-doctoral
research in Economics from notable US
universities. He also served as an
Ambassador of Nepal for Sri lanka and
Maldives. He also served as member of
the board of Nepal Rastra Bank.
Bishwambhar PyakurelPhD. Economics
OBJECTIVE OF THE SCHEME
FUND SPONSOR
FUND MANAGER / DEPOSITORY
WHAT IS MEGA MUTUAL FUND-1 ?
Why MegaMutual Fund-1 ?
1. Right amount of diversification
Currently, majority of mutual funds have exposure of around 60 - 70 companies which is around 35% of the total
regularly traded companies. Such over diversification dilutes the benefit of the diversification, so we will be
focusing on not diluting the benefits of diversification with right number of companies in our portfolio. Generally
20 - 25 would be a suitable range of diversification so as to earn the benefit of diversification without diluting the
earnings. So our focus is not to replicate NEPSE index, but to precisely choose companies with high probability
capital appreciation in our portfolio.
At present, we see high correlation between NAV of mutual funds and NEPSE INDEX. With the right amount of
diversification and dynamic assets allocation shifts, we aim to reduce the correlation among INDEX and NAV
down in our Mutual Fund. A strategy that would not shy away from setting stop loss if in case required, so that
the risk of downfall would be minimized.
2. Investment decision making
Our investment decision making would not just be limited to Fundamental and Technical Analysis but also would
include the aspect of Behavioral Finance as well. Nepalese stock market is not efficient in the weak form so
behavioral biasness prevails and has seen to be impacting the market movement. So we would be identifying
and analyzing these trends and their impact on human decision-making which ultimately reflects on the stock
market.
3. New fund mixed with experienced team
Though it is our first Mutual Fund Scheme under Mega Mutual Fund, the team managing the fund (those mainly
involved in decision making) are experienced professionals with extensive expertise in mutual funds and
investments in Nepalese stock market. The learnings from the previous experience of leading large fund
management in merchant banks and investments in NEPSE will aid the team to streamline the fund
management process in a different, dynamic yet effective manner.
4. Capital appreciation focused fund
Our fund management strategy is one of the most aggressive of strategies as our asset allocation is maximum
10% in fixed income securities and 5% in call deposit with majority remaining invested in the market. Currently,
the existing mutual funds allocate as much as 20-30% of assets to the fixed income securities causing the
evident low return of their schemes. With Mega Mutual Fund-1, as majority of the fund will be invested in stock,
the risk might be perceived as high by the market. However, we would be diversifying our portfolio and would
not hesitate from setting various stop loss requirement, which is practiced internationally but uncommon in
Nepal so far. The market cycle is expected to be bullish for next few years and early entry at this bullish cycle
would pave a strong path for the entire 10 years of the mutual fund life for long term investors. Our investment
decision-making with various aspect in itself would aid to the investment allocation being made strategically and
dynamically.
Investment Decision MakingProcess
Macro-Economic Research PESTEL Analysis
Behavioural Study
Industry Analysis
Company Research / Valuation
Track changes, events and
announcements on a
regular basis
Understanding how investors
are perceiving the market as
well as their bias.
Porter’s 5 Forces, Industry Size,
Scope, Growth, Cycle, Distribution,
Penetration Level, Opportunities,
Threats and Regulatory issues etc.
Selection of Industry
with potential
Filter good companies
within the industry by
criteria like PE, PB,
Net Worth, Market
Share etc.
Data and performance of
company to be compared
with other company or
industry average.
Analyze financial performance and position
from at least past 5 years and quarterly
reports.
Key Information – ROE, ROA, Net growth,
revenue growth, profit growth, profit
margins, source of revenue, existing and
new contracts won/lost, cash flows and
profit generation etc.
Management Capabilities, corporate
governance, company’s strategy and its
plan, SWOT .
Latest GDP growth rate, monetary policy,
fiscal policy, interest rates, liquidity,
published quarterly financials, other news.
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FundTechnicalities
Asset Allocationand Risks
L
ow
Low
Moderate
Moderate Moderate H
igh Hig
h
Riskometer
Equity
75%-85%
Cash / Call Money
5%-15%
Fixed IncomeSecurities
10%
Normal Asset Allocation
Nature of the Scheme
Fund Name
Scheme Name
Investment Objective
Corpus
NFO Price Per Unit
NFO Unit
Minimum Unit to Apply
Maximum Unit to Apply
Maturity
Allotment of Units
Dividend Payout Strategy
Fund Sponsor
Fund Sponsor Rating
Fund Manager and Depository
Fund Manager’s Rating
Close End Equity Fund
Mega Mutual Fund
Mega Mutual Fund - 1
To generate long term capital appreciation by investing predominantly in equity & equity
related instruments and partly in fixed income securities as allowed by prevailing rules on
mutual fund
NPR 1 Billion (Bio). Corpus amount may reach a maximum up to 1.25 Billion
(25% more) if oversubscribed as allowed by prevailing rules
NPR 10
100,000,000 Units
100 Units
10,000,000 Units
10 Years from the date of allotment of units (the assets under the scheme post 10 years
will be redeemed and the realized cash will be distributed in proportion to investments as
per prevailing rules
As per Securities Allotment Directive, 2068
Dividend will be paid out of net profits in proportion to investments made, retained earnings,
if any, will be re-invested
Mega Bank Nepal Limited, who will be investing 15% seed capital into the fund
“[ICRANP-IR] BBB+’’ (pronounced ICRA NP issue rating triple B plus) moderate degree
of safety regarding the timely servicing of financial obligations
Mega Capital Markets Limited
“[ICRANP] AMC Quality 3 (AMC3)” provide Adequate assurance on management quality
FundProjections
Dividend Payout
NAV per Unit
Return on Investment
21.00%
21.50%
22.50%
22.00%
21.53%
22.17%
22.41% 22.41%
22.56% 22.61%
22.46%
22.31% 22.30% 22.30%
Mega Capital
Mega Capital Markets Limited is a 100% Subsidiary of Mega Bank Nepal Limited, one of the leading
commercial banks of Nepal. Mega Capital Markets Limited is licensed by Securities Board of Nepal to
operate as a Merchant Banker. The range of service provided by Mega Capital includes Portfolio
Management, Corporate Advisory, Depository Participant, Underwriting, Issue Management, RTS / RTA and
Mutual Fund. Mega Capital has a team of highly experienced and dynamic professionals who have a proven
track record in the Investment Banking and Merchant Banking Industry.
Key Management Team
Board of Directors
Mr. Ishwar Bahadur Gurung is the Founder Promoter of Mega
Bank Nepal Limited and has been instrumental in the set up of
the Bank. He has decades of experience in Business
Management and Leadership. Currently he is engaged as the
Principal of Moonlight Higher Secondary School.
Mr. Ishwar Bahadur GurungChairman
16 years of national and international
experience in investment, finance,
auditing and management with more than
8 years’ experience in the Nepalese
Capital Market.
Mr. Sabir Bade Shrestha CEO, ACCA, EMBA
11 years experience in investment,
finance and auditing with 5 years plus
experience in Nepalese Capital Market.
Mr. Shulav ShresthaCIO, FCCA, EMBA
4 years’ experience in accounting,
auditing and advisory.
Mrs. Ibika AdhikariIncharge - Accounts / Advisory, CA (Inter)
Mr. Pokharel is serving at Mega Bank
Nepal Limited as Senior Deputy General
Manager and has been associated with
the Bank since its inception. He has
completed his MBA and has more than 24
years of experience at management level
in banking sector.
Mr. Tulsi Ram PokharelDirector
Mr. Shrestha is serving at Mega Bank
Nepal Limited as the Legal Head. He has
completed his L.L.M. and more than 12
years of experience in legal department of
various BFIs.
Mr. Dilli Ram ShresthaDirector
Mr. Paudel holds a doctoral degree in
Economics from the Australian National
University (ANU) and currently works as
an Associate Professor at the Central
Department of Economics of Tribhuvan
University. Dr. Paudel has extensive
teaching, research, and management
experience in Nepal and Australia.
Dr. Ramesh Chandra PaudelDirector
Mr. Bhattarai is an Advocate / ADR
practitioner in IB Law Associates and
completed L.L.M. Commercial Law &
Constitutional Law from TU. He is
currently Vice President of Nepal Bar
Association. He has been involved in legal
practice since 2050 B.S.
Mr. Ishwori Prasad BhattaraiDirector
MUTUAL
FUND
To apply login to your Meroshare account or contact your C-ASBA bank.
Saket Complex, Tripureshwor, Kathmandu
+977-1-5362790, 5362772
info@megacapitalmarkets.com | www.megacapitalmarkets.com
Licensed by SEBON to do issue management, underwriting, RTS/RTA,
porftolio management, corporate advisory & Mutual Fund.
*Mutual Funds are subject to market risks. Read all scheme related documents carefully.
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