Prabhu Select Fund receives overwhelming response from investors

KATHMANDU: Prabhu Select Fund has received a overwhelming response from the investors as the fund gets over-subscribed nearly about two times within the stipulated closure date.

The fund has received the application for 19.78 crore units where the floated fund size was just 10 crore units.

85,554 public investors had applied for Rs 1.82 billion worth mutual fund units. Out of the total 10 crore unit mutual fund, 15% i.e. 1.5 billion units have already been reserved for the promoter institutions i.e. Prabhu Bank and Prabhu Capital, as per the media statement.

The 1 billion worth mutual fund scheme will be managed by highly experienced fund managers experienced in different national and international securities markets.

Prabhu Select Fund is a mutual fund scheme worth Rs 1 billion. Thus, 100 million units of Rs 10 face value each will be issued. Prabhu Select Fund is a close-ended scheme with a maturity period of 7 years. The fund projects a 4.08% return to investors in its first year, 22.34% in its second year, 42.16% in its third year, and 130.47% in its eighth year.