Published: Sep 1, 2024
Systematic Investment Plans (SIPs) have gained immense popularity among Nepali investors for their disciplined approach to wealth creation. With a range of SIP service providers in Nepal, it can be challenging to identify the best option for your financial goals. This blog explores the top SIP providers, compares their returns, and helps you make an informed decision.
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds in Nepal. SIPs are ideal for long-term wealth growth as they benefit from rupee cost averaging and the power of compounding.
Key benefits of SIP in Nepal:
Disciplined Investing: Automates regular investments.
Risk Mitigation: Reduces the impact of market fluctuations.
Flexibility: Allows adjustments based on financial circumstances.
Let’s explore some of the top mutual funds and SIP service providers in Nepal, along with their returns:
Scheme: Kumari Sunaulo Lagani Yojana (KSLY)
Features: Low entry requirement (NPR 1,000), diversified portfolio, and online tracking through platforms like Meroshare.
Returns: Historical annual returns of approximately 12-14%.
Scheme: NIC Asia Dynamic Debt Fund
Features: Focuses on fixed income securities and offers moderate-risk investment options.
Returns: Average returns of 10-12% annually.
Scheme: Nabil Balanced Fund
Features: A balanced approach with a mix of equities and fixed-income instruments.
Returns: Historical returns of around 11-13% annually.
Scheme: Siddhartha Equity Oriented Scheme
Features: Primarily focuses on equity investments, ideal for higher risk tolerance.
Returns: Average annual returns of 14-16%.
Scheme: Laxmi Equity Fund
Features: Diversified portfolio with a focus on long-term growth.
Returns: Historical returns of 12-15%.
| Provider | Scheme | Annual Returns | Risk Level | Best For |
|---|---|---|---|---|
| Kumari Capital | Kumari Sunaulo Lagani Yojana | 12-14% | Moderate | New investors |
| NIC Asia Capital | NIC Asia Dynamic Debt Fund | 10-12% | Low | Conservative investors |
| Nabil Investment | Nabil Balanced Fund | 11-13% | Moderate | Balanced growth |
| Siddhartha Capital | Siddhartha Equity Oriented Fund | 14-16% | High | Aggressive investors |
| Laxmi Capital Market | Laxmi Equity Fund | 12-15% | Moderate to High | Long-term growth seekers |
While fixed deposits are low-risk, SIPs provide dynamic growth and the potential to outpace inflation. With the flexibility to adjust contributions and the benefit of compounding, SIPs are ideal for achieving financial independence over time.
Investment Goals: Align the scheme with your financial objectives.
Risk Tolerance: Evaluate your capacity to handle market fluctuations.
Historical Performance: Review the scheme’s past returns.
Fund Manager Expertise: Ensure the mutual fund is managed by experienced professionals.
Flexibility and Liquidity: Choose schemes that allow easy adjustments and withdrawals.
