Friday, January 4, 2013

Interest in portfolio management rises

KATHMANDU, JAN 03, 2012

The bull run in stock market has stimulated portfolio management services offered by merchant bankers.

Anyone who wants to cash in on the ups and downs of the share market but does not have the expertise or time to invest in stock trading can obtain the services of a portfolio management company. Portfolio managers purchase and sell securities on behalf of their clients and manage their investment portfolio.

“The number of clients with us has increased as professionals who do not have the time to devote in investment but want to make money from the capital market have recognised the usefulness of having a professional manage their portfolio,” pointed out chief executive of Nabil Investment Pravin Raman Parajuli. Nabil Investment offers portfolio management services.

Among the 14 merchant bankers licensed by Sebon, 11 have been granted licence to operate as portfolio managers. Among them, only three are involved in providing portfolio management services. Nabil Investment, Beed Invest and Vibor Capital are the only merchant bankers that are managing the funds of their clients.

Beed Invest had started its portfolio management service in 2009. However, since the market was already headed south, many did not consider investing in stocks and in the last four years merchant bankers were not pushing for portfolio management service.

“A large number of people are not aware that portfolio management services that professionally manage their investment are available, but lately professionals with disposable wealth are opting for the services instead of putting the money in fixed deposits,” added Parajuli.

Portfolio Management Directive requires that portfolio managers only take up clients who can invest a minimum of Rs 300,000. They are allowed to purchase and

sell securities on behalf of their clients and settle the funds as well. They will also be acting as consultants regarding the sale or purchase of securities. Moreover, portfolio management is supposed to facilitate Non Resident Nepalis interested in investing in the Nepali secondary market.

As the stock market has once again started its bullish run, share prices have appreciated phenomenally making the capital market attractive once again.

“No other investment instrument provides returns as high as that of bullish share prices, so people are gaining interest in shares,” said share analyst Rabindra Bhattarai.

Source: THT

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