Mutual funds deepen stock market bets as NEPSE remains under pressure
Summary
Mutual funds and other institutional investors are increasing their stock market exposure even as NEPSE transactions continue to decline. Margin loans have also risen sharply, reaching Rs 166 billion by the end of the last fiscal year.
Key Points
- Mutual funds expanded their stock market investment to Rs 68.19 billion by mid-August, up 1.77 percent from mid-July.
- Sanima Equity Fund-2 recorded the biggest monthly increase in secondary market purchases, while Citizens Balanced Scheme also raised its portfolio.
- Analysts say falling bank deposit interest rates and a prolonged sluggish market are pushing large investors toward equities.
- Margin loans from banks and financial institutions climbed to Rs 166 billion, with equity-backed loans above Rs 10 million reaching Rs 119 billion.
