DECLARATION

I hereby declare that the research work entitled "PROBLEMS AND PROSPECTS OF
MUTUAL FUNDS IN NEPAL" submitted to Faculty of management, Tribhuvan
University, is my original work done in the form of the partial fulfillment of the
requirement of Bachelor of Business Studies (BBS) under the supervision of Mr.
Bamdev lamichhhane of MARK international College. This project work report has
not been submitted to any other University or institutions for the award of any degree
or diploma.

…………………………………
LALIT POKHREL
MARK international College
15 APRIL 2023
 SUPERVISOR'S RECOMMENDATION

The project work report entitled "PROBLEMS AND PROSPECTS OF MUTUAL

FUNDS IN NEPAL" submitted by LALIT POKHREL of MARK INTERNATIONAL
COLLEGE, GHORAHI DANG, is prepared under my supervision as per the procedure and
format requirement laid by the Faculty of Management, Tribhuvan University, as partial
fulfillment of the requirement for the award of the degree of Bachelor of Business Studies
(BBS). I, therefore, recommend the project work report for evaluation.

………………………………………
BAMDEV LAMICHHANE
(Report Supervisor)
MARK INTERNATIONAL COLLEGE
15 APRIL 2023
 ENDORSEMENT

We hereby endorse the project work report entitled" PROBLEMS AND PROSPECTS OF
MUTUAL FUNDS IN NEPAL." submitted by LALIT POKHREL of MARK
INTERNATIONAL COLLEGE, GHORAI DANG, in partial fulfillment of the
requirements for award of the Bachelor of Business Studies (BBS) for external evaluation.

……………………………… …………………………………

Naula khadka Bamdev lamichhane

(Chairmen, Management Research committee) (Campus Chief)

15 April 2023 15 April 2023

ACKNOWLEDGEMENT
This research entitled “PROBLEMS AND PROSPECTS OF MUTUAL FUNDS IN
NEPAL” has been conducted with the view to examine the possibilities of mutual funds in
Nepalese financial markets. This effort is for the partial fulfillment for the degree of Bachelor
of business studies (BBS) under the course designed by the Faculty of Management, T.U.

At the time of preparing this study, I had consulted various personalities. So I would like to
extend my sincere thanks to all whose works and ideas helped me in conducting the study.
Sincerely, I would like to pay my sincere thanks to Mr.Tilak Panday, Dhaniram Neupane,
Naula Bahadur Khadka, and Mr.Khadananda Khanal of Mark International College for their
constant encouragement, valuable suggestions in the course of the preparation of this thesis
and undertaken by Mr. bamdev lamichhane the supervision of my entire research work. This
form of the report is the outcome of this continuous encouragement, helpful suggestions and
comments.

Finally, I would like to offer my profound gratitude to my family and friends for their
encouragement and support during the entire period of my study.

LALIT POKHREL

Table of contents
Title page …………………………………………………………………………………..i

Declaration…………………………………………………………………………………. ii

Supervisor's Recommendation…………………………………………………….. ………. iii

Endorsement……………………………………………………………………………….. iv
Acknowledgement…………………………………………………………………………. v

Table of contents…………………………………………………………………………… vi

List of tables/figures.……………………………………….……………………………… vii

Abbreviations …………………………………..…………………………………. ………. viii

CHAPTER I: INTRODUCTION ………….……….…………………………………… 1-12

Background …………………….……………………………………………… 1

Profile of mutual fund in Nepal……………………………………….. ………. 2

Objectives of the study………………………………………………………… 3

Rationale ………………………………………………………………………. 3

Literature Review……………………………………………………………… 4

Research Method ……………………………………………………………… 7

Limitation of study…………………………………………………………….. 11

CHAPTER II: RESULT AND ANALYSIS ………………….…………………. ………. 13-25

Presentation of data in figures, tables and their analysis……………… ………. 13

Field Survey……………………………………………………………………. 19

Major findings …………………………………………………………………. 24

CHAPTER III: SUMMARY AND CONCLUSION……………………………………. 26-27

Summary ………………………….…………………………………………… 26

Conclusion …………………………………………………………………….. 27

REFERENCES/BIBLIOGRAPHY……………………………………………………… 28

APPENDICES…………………………………………………………………………….. 29

List of Table

Table no.1 Investment portfolio of NCM 14

Table no. 2 Investment portfolio of CUS 14
Table no.3 HPR analysis of NCM and CUS 15
Table no. 4 Risk and Return Analysis of NCM and CUS 16
Table no.5Systematic and Unsystematic Risk of NCM and CUS Fund 19
Table no. 6 Present Condition of Mutual Fund in Nepalese Financial Market 20
Table no. 7 The Knowledge of Nepalese Investors about Mutual Fund 21
Table no. 8Contribution of Mutual Fund 23

List of Figure

Figure no. 1 Risk and Return Analysis of NCM and CUS 17

Figure no. 2 Present Condition of mutual Fund in Nepalese Financial Market 20
Figure no. 3 The knowledge of Nepalese Investor about Mutual fund 22
Figure no. 4 Contribution of Mutual fund 23

ABBREVIATIONS

▪ Amt: Amount

▪ B.S.: Bikram Sambhat

▪ i.e.: That is

▪ Ltd: Limited

▪ &: And

▪ CUS: Citizen Unit Scheme

▪ HPR: Holding period return

▪ NCM: NIDC Capital market

▪ S.D.: Standard Deviation

▪ C.V.: Coefficient of variation

▪ NEPSE: Nepal Stock Exchange

▪ NAV: Net Assets Value

▪ CIT: Citizens Investment Trust