Citizens Capital is set to launch its firsrt open-ended scheme dubbed “Citizens Sadabahar Yojana”. The fund manager plans to release 5 crore units of this new mutual fund initiative. At a face value of Rs 10 per unit, the total offering amounts to Rs 50 crores. This scheme will be managed under the umbrella of ‘Citizens Mutual Fund’.
For this purpose, the Securities Board Of Nepal (SEBON) has granted approval to the firm on Ashad 2, 2082 BS. Acting as the fund manager, Citizens Capital filed the application with the board on Ashwin 2, 2081 BS seeking sanction. The company can only distribute units to the public post the board’s consent.
Citizens Bank stands as the promoting entity of the Citizens Mutual Fund. Thus, the bank, in collaboration with the fund manager Citizens Capital, will acquire 15 percent or 75 lakh units of the scheme. The broader public can subscribe for the remaining 4.25 crore units, totaling Rs 42.5 crores.
The ‘Citizens Sadabahar Yojana’ is an open-ended scheme. In an open-ended mutual fund, potential investors can buy or sell shares of the fund directly from it, eliminating the need to buy from current shareholders.
Investing in a mutual fund might be a prudent approach for most investors, as it provides reasonable returns with a lower risk profile. These funds are overseen by seasoned professionals and offer considerable diversification.
