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
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
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.