What is Mutual Fund?

A mutual fund is an investment vehicle that pools investors money and invests on behalf of the investors. It is an instrument that raises money from a group of people and invests their money in stocks, bonds, and other securities. Each investor owns units, which represent a portion of the holdings of the fund. Mutual funds are managed by professional fund managers who create specific portfolios with regards to the investment objectives.

Fund Ownership

Mutual funds raise their funds from the general public and institutions. Each mutual fund investor is a unit holder of the mutual fund scheme. All unit holders share in the funds gains and losses on an equal basis, proportionately to the amount theyve invested. Investors are entitled to gains and losses realized on the entire portfolio, not to any individual security the fund is invested in.

Fund Size

The corpus or the fund size differs from scheme to scheme. The corpus is fixed in case of closed-end fund. In the present Nepalese context, fund sizes usually range from around Rs.600 million to Rs. 1 billion.


  • AKPL 688.50(52) (14)
  • DHPL 688.50(52) (14)
  • EBL 688.50(52) (14)