Mutual Funds Rushing to Announce Dividends, Some Funds Still Offer Opportunities to Earn Dividends

Mutual Funds Rushing to Announce Dividends, Some Funds Still Offer Opportunities to Earn Dividends

So far, 17 mutual funds have announced cash dividends for unit holders from the profits of the last fiscal year.

Key Highlights:

• Funds Announcing Dividends:
  17 mutual funds have announced cash dividends for unit holders, including 3 open-ended and 14 closed-ended schemes.

• Opportunity to Earn Dividends When Purchasing:
  There is still an opportunity to earn dividends in 10 closed-ended schemes. To receive dividends, one must purchase units before the book closure date.

• Dividends from Open-Ended Schemes:
  NIC Asia Dynamic Debt, Kumari Sunaulo Yojana, and Shubhalaxmi Fund are open-ended schemes that have announced dividends.

• Book Closure Dates:
  Siddhartha Investment Growth Scheme 3 has a book closure date of Bhadra 23, and Kumari Equity and Kumari Dhanvriddhi have a book closure date of Bhadra 19.

• Dividend Distribution and Unit Price:
  Mutual funds provide dividends on a par value of NPR 10 per unit. For example, a 12% dividend means NPR 1.20 per unit (12% of 10).

• Par Value and Market Value:
  Some schemes are trading below NPR 10 in the secondary market. The market price and Net Asset Value (NAV) of closed-ended schemes may differ.

Details of Dividend Announcements:

• Shubhalaxmi Fund (Open-Ended) – 7.5%

• Laxmi Value Fund 2 – 4.5%

• Laxmi Unnati Fund – 7.5%

• NIC Asia Dynamic Debt (Open-Ended) – 10%

• Kumari Sunaulo Yojana (Open-Ended) – 10.5%

• Sanima Equity Fund – 15% (yet to be announced)

Unit holders investing in mutual funds are advised to choose the right time and scheme to earn dividends.