Which SIP is the Best SIP in Nepal 2023?

 Which is Best SIP in Nepal 2023

One of the current issues in financial management is selecting the Best SIP in Nepal in 2023. If you are also willing to know which SIP is best in Nepal, you are at the right place. In this article, you will understand the Best SIP in Nepal in the current days.  SIP stands for Systematic Investment Plan in the financial sector.

Currently, a huge number of people know about the stock market of Nepal and various types of investment plans. Among various investment plans, SIP is the one. But the way of selecting the best SIP in Nepal is important and challenging. 

The Systematic Investment Plan (SIP), a well-liked investment method in Nepal, enables participants to make fixed investments in mutual funds at predetermined periods, usually monthly.

By using this investment strategy, investors can lessen the effects of market turbulence while achieving their long-term financial objectives.

SIP plans are available in Nepal from a number of banks, financial institutions, and mutual fund firms, allowing investors to start investing with as little as 1000 NPR every month.

Retail investors looking to build wealth through disciplined and regular investments are increasingly using SIP in Nepal.

What is SIP investment in Nepal?

A systematic Investment Plan (SIP) is a well-liked investment tactic that has attracted a lot of attention recently in the context of Nepal's financial sector. SIP enables investors to make fixed investments in mutual funds or other investment vehicles at predetermined periods, often monthly.

SIP's main objective is to assist investors in long-term wealth building through systematic and disciplined investing. Investors can benefit from the power of compounding by making a set sum of investments at regular intervals, which can produce sizable returns over time.

In order to generate better returns on their investments, investors should spread out the expense of their assets across a longer time frame.

There are more than 35 mutual funds in Nepal managed by banking and financial institutions. Among them, 6 are open-ended including a debt fund.

In this article, we will focus on the systematic investment plan (SIP) in mutual funds, especially in open-ended mutual funds where you can start investing from NPR 1000 up to your capabilities.

SIP offers investors the chance to lessen the effects of market volatility, which is one of its key benefits. The risk involved with making an investment in a single lump sum decreases noticeably if the investment is made gradually over a longer period of time. 

With the use of this method, investors are able to spread out the cost of investments across a longer time frame, improving their ability to generate profits.

SIP is a versatile investing technique that may be tailored to satisfy a person's unique investment requirements. Depending on their level of risk tolerance, time horizon for investing, and financial objectives, investors can select from a variety of mutual fund kinds.

SIP plans are available in Nepal from a number of banks, financial institutions, and mutual fund firms, allowing investors to start investing with as little as 1,000 NPR every month. 

These plans give participants the freedom to select from a variety of investment options, including balanced, debt, and equity funds.

Additionally, investors have the option of choosing SIP through online platforms, which improves accessibility and convenience for investors. 

Investors may more easily make educated investment decisions thanks to the online SIP platforms, which give them access to real-time information on the success of their investments.

SIP is a great investment strategy for people wishing to accumulate wealth over the long term through consistent and disciplined investing. 

SIP provides investors with a flexible investment choice to invest in a variety of mutual funds based on their investment objectives, risk tolerance, and time horizon. 

Retail investors now have easier, more convenient, and more cheap access to SIP investments because of the advent of online SIP platforms.

History of SIP in Nepal

The concept of Systematic Investment Plans (SIPs) originated in India and gained popularity in the Nepalese investment landscape over time. 

Although the exact timeline of SIPs in Nepal may not be readily available, it is safe to assume that they emerged after their success in the Indian mutual fund industry.

The mutual fund industry in Nepal has experienced significant growth and development in recent years. The first mutual fund, Nabil Balanced Fund, was launched in Nepal in 1994. 

Since then, several mutual fund companies have been established, offering a variety of investment options to Nepalese investors.

SIPs, as a way to invest in mutual funds, have become increasingly popular in Nepal due to their benefits and investor-friendly features. 

They have gained recognition as an effective investment strategy for long-term wealth creation and goal-oriented investing.

Today, investors in Nepal can choose from a wide range of mutual funds that offer SIP options. These funds span various asset classes, including equity, debt, and balanced funds. 

Investors can select the fund that aligns with their investment objectives and risk appetite and initiate a SIP to invest regularly over a specified period.

In summary, the SIP especially in open-ended mutual funds has a very short history in Nepal.

Importance of SIP in Nepal

Before jumping in to the investment in SIP, you have to know the importance of SIP. You might take into account the following points to demonstrate the significance of SIPs (Systematic Investment Plans):

Consistency in Investing:

SIP promotes consistent investing by enabling you to make regular, fixed-amount investments. These investments are normally made on a monthly basis. This methodical strategy fosters a savings habit and, over time, lessens the effects of market volatility.

Rupee Cost Averaging:

Rupee cost averaging refers to the practice of purchasing more units of an investment when prices are low and fewer units when prices are high. SIP uses this method. This helps to maximize returns over the long term and reduces the danger of making significant investments at the wrong time.

Long-term Wealth Creation:

The main goal of SIPs is to generate long-term wealth. Compounding returns are an advantage of investing consistently over a long period of time. Your assets can grow rapidly over time thanks to the force of compounding, which could result in significant wealth creation.

Reduced Market Timing Risk:

It is famously difficult to time the market, and even seasoned investors frequently find it challenging to predict market fluctuations correctly. SIP eliminates the need to time the market by investing consistently, regardless of the state of the market. As a result, there is a lower chance of making poor investing choices based on transient market swings.

Flexibility and Affordability:

SIP enables you to begin investing with small sums, opening it up to a wider spectrum of people. You can choose the investment amount that best fits your financial situation, and the majority of mutual funds don't require a minimum holding time, so you can increase or decrease your contribution whenever it suits you.


SIPs give investors the chance to invest in a portfolio of diversified assets. For instance, mutual funds diversify risk by investing in a variety of securities from different industries. Diversification increases the potential for steady and reliable returns by minimizing the impact of individual investment performance on the total portfolio.

Goal Oriented Investing:

SIPs are excellent for attaining long-term financial goals, such as retirement planning, paying for college, purchasing a home, or setting up a reserve fund. 

You can match your investments with your financial goals and take steps to achieve them methodically by creating clear investment goals and making monthly SIP investments.

While these arguments make a compelling case for the significance of SIP, it's crucial to keep in mind that investing choices should take into account each investor's financial objectives, risk tolerance, and the counsel of a knowledgeable financial advisor or you have to be capable of understanding and handling of circumstances in the capital market of Nepal.

Available SIPs in Nepal Now

It has already been mentioned that we will focus on SIP in open-ended mutual funds in this article. So, as of May 2023, there are FIVE SIPs in Nepal and one of which is a debt fund.

The following are the SIPs in Nepal managed by banking and financial institutions:

NIC Asia Dynamic Debt Fund (NADDF)

NIC Asia Dynamic Debt Fund (NADDF) is an open-ended debt fund operated by NIC Asia Capital Limited. The minimum investment limit is NPR 1000. You can choose the investment plan either monthly or quarterly according to your ease. You can visit the website of NIC Asia Dynamic Debt Fund. 

Nabil Flexi Cap Fund (NFCF)

Nabil Flexi Cap Fund (NFCF) is an open-ended mutual fund for SIP in Nepal managed by Nabil Investment Banking Limited. It was started in September 2022. If you want to visit the website, here is the link of Nabil InvestmentBanking Limited.

NIBL Sahabhagita Fund (NIBLSF)

NIBL Sahabhagita Fund (NIBLSF) is an open-ended mutual fund for SIP in Nepal managed by NIBL Ace Capital Limited. It was started from January 2023. As of May 2023, it’s NAV is 10.02. You can register online if you want to invest in this SIP.

If you want to visit the website, here is the link of NIBLAce Capital Limited.

NMB Saral Bachat Fund - E (NMBSBF)

NMB Saral Bachat Fund - E (NMBSBF) is also an open-ended mutual fund for SIP in Nepal operated by NMB Capital. It was started in May 2023. It is first open-ended mutual fund under NMB mutual fund.

If you want to visit the website, here is the link of NMB Capital.

Shubha Laxmi Kosh (SLK)

Shubha Laxmi Kosh (SLK) is same as the other open-ended mutual fund operated by Laxmi Capital Market Limited. Fund is sponsored by Laxmi Bank.

If you want to visit the website, here is the link of Laxmi Capital Market Limited.

Siddhartha Systematic Investment Scheme (SSIS)

Siddhartha Systematic Investment Scheme (SSIS) is also the open-ended mutual fund for SIP in Nepal operated by Siddhartha Capital Limited. It was started in October 2021.

If you want to visit the website, here is the link of Siddhartha Capital Limited.

You can see the approved mutual fund detail from the website of the Security Board of Nepal (SEBON) as well.

You can check the updated NAV of all mutual funds on nepsealpha website where you have to go to ‘Alpha Screen’ menu and then go to the Mutual Fund Performance section or sub-menu.

There are more than 3 open-ended mutual funds in Nepal that are in the pipeline to get approval from the Security Board of Nepal (SEBON). There will be many choices of open-ended mutual funds for investors in SIP in the future.

How to Choose Best SIP in Nepal?

If you want to invest in the stock market, the Systematic Investment Plan (SIP) is a great choice. The SIP investing alternative is becoming more and more well-liked in Nepal as a result of its adaptability, accessibility, and convenience.

A specified sum of money may be invested in mutual funds or other investment vehicles on a regular basis using this investing option.

Given the wide range of options on the market, selecting the best SIP plan in Nepal might be difficult. The important criteria to take into account when selecting the best SIP in Nepal are covered in this post.

1.       Investment Objective and Horizon

The investor's investment objective and horizon should be taken into account as the first and most crucial factors while selecting the finest SIP plan in Nepal.

An investor should choose the SIP plan in accordance with their investment objective, whether it be wealth building, capital preservation, or monthly income.

Similarly to this, when selecting the ideal SIP plan, the investor's investment horizon, or the length of time they intend to keep their investment, should also be taken into account.

Equity mutual funds might be a better choice for long-term investors, whilst debt mutual funds might be a better choice for short-term investors.

2.       Risk Tolerance

Investors should also consider their risk tolerance while selecting the best SIP plan. Different mutual fund schemes have varying levels of risk, and investors should choose a SIP plan that aligns with their risk tolerance.

Equity mutual funds are riskier than debt mutual funds, and investors with a higher risk tolerance may opt for equity mutual funds, while those with a lower risk tolerance may choose debt mutual funds.

3.    Fund Manager's Track Record

When deciding on the best SIP plan, the track record of the mutual fund's fund manager is a crucial consideration to take into account.

The investment choices made by the fund manager heavily influence the performance of a mutual fund. Investors should seek out a fund manager who has a history of providing reliable returns over a long period of time.

4.     Fund Performance

When choosing the ideal SIP plan, investors should also take the mutual fund scheme's historical performance into account. The performance of a mutual fund scheme in the past is a good indicator of how well it will perform going forward, and it can provide investors a hint.

5.     Expense Ratio

The annual cost levied by the mutual fund provider to manage the fund is known as the expense ratio. The expenditure ratio should be taken into account when choosing the best SIP plan by investors.

Long-term investment performance can be severely impacted by a greater expenditure ratio. To maximize their returns, investors should select a mutual fund strategy with a reduced fee ratio.

6.     Asset Under Management

The total amount of assets that a mutual fund scheme manages is referred to as its asset under management (AUM). When choosing the optimal SIP plan, investors should take the AUM of a mutual fund scheme into account.

Large AUM mutual fund schemes are frequently thought to be more reliable and to have a more diverse portfolio.

7.     Exit Load

Exit loads are fees levied by mutual fund companies when investors choose to leave a scheme before a predetermined time period.

The exit burden should be taken into account when investors select the appropriate SIP strategy. Investors who may need to exit a mutual fund scheme early may not be suited for one with a higher exit load.

Those above-mentioned factors must be carefully taken into account when selecting the best SIP plan in Nepal.

Before selecting the best SIP plan that fits their investing objectives, risk tolerance, and financial circumstances, investors should undertake extensive research and analysis.

By choosing the best SIP plan, investors can maximize their returns and achieve their long-term financial goals.

Which is Best SIP in Nepal?

Selecting the best SIP in Nepal is crucial now as most of the mutual funds for SIPs are almost new. They have very few periods of history track. Therefore, you can choose some of the SIP as the best SIP by analyzing some affecting factors of returns.

Before choosing best SIP in Nepal, it will be better to check the net asset value (NAV), mutual fund’s performance and capabilities of return against investment.

To select best SIP in Nepal for now, one thing you can watch is you can check the ‘Fixed Income’ of mutual funds and the distributable dividend. Also, you can compare Mutual Funds. 

As of May 2023, open-ended mutual funds have the following fixed income and distributable dividends.

Fixed Income

Nabil Flexi Cap Fund = 14.88%

NIBL Sahabhagita fund =14.11%

NMB Saral Bachat Fund – E = 13.98%

Shubha Laxmi Kosh = 12.81%

Siddhartha Systematic Investment Scheme = 13.46%

NIC Asia Dynamic Debt Fund = 11.11%

Distributable Dividend

Nabil Flexi Cap Fund = 0%

NIBL Sahabhagita fund =2%

NMB Saral Bachat Fund – E = 0%

Shubha Laxmi Kosh = 0%

Siddhartha Systematic Investment Scheme = 0%

NIC Asia Dynamic Debt Fund = 5%

In summary, any of the open-ended mutual funds are taken as a good SIP at this time because they have a short history of performance. But in future, you can choose the best one by analyzing different factors.

Process of SIP Registration in Nepal

For SIP registration in Nepal, you have to choose the best SIP first. You can easily register your SIP plan through online platform now.

Once you choose the best SIP, you have to visit the website of capital companies in which you want to register your SIP. For example, if you choose Nabil Flexi Cap Fund for SIP, you have to visit the website of Nabil Investment Banking Limited.

When you visit to the website (the website links are given above in SIPs in Nepal section), you have to fill up the online form with the necessary information and upload the necessary documents.

Once you fill up the form, you will be requested to pay the first installment of your investment. You have to pay through online payment methods such as eSewa, connect ips etc.

After you pay the first installment of your investment, you will get the log in user ID and Password through the email. By using that user ID and your password, you can do the further process of payments and checking your SIP status online.

Which Documents Are Needed for SIP Registration in Nepal?

For SIP registration in Nepal, you need to have:

Demat Account

Bank Account

Citizenship Copy

BO Confirmation/ Screenshot of Mero-Share Details

Birth Certificate, in case of a minor

Obviously, you should have an email and a contact number 

In conclusion, investing in SIP is an option for the growth of your capital. There are choices of SIPs in Nepal. Among more than 35 mutual funds, 6 mutual funds are open-ended. 

Mainly the Systematic Investment Plan (SIP) is done in an open-ended mutual fund. Investing in the financial market does not guarantee a return of investment. 

Researching and analyzing the particular area of investment which you want is very important. If you are willing to invest in SIP, you will get choices and you can involve through online platforms.

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