Kathmandu. Global IME Capital is going to launch a unit of collective investment fund “Global IME Promotion Plan 2” on public issue from July 15.

The scheme will initially start with a fund size of Rs 1.2 billion and can be expanded by a maximum of 25 percent to Rs 1.5 billion. The scheme aims to provide long-term benefits to investors by managing risk in a balanced manner by investing in equity and fixed income instruments.

The scheme has been fully implemented as per the Mutual Fund Regulations 2067, which ensure transparency, investor protection and proper fund management. Among its features, it is a closed-ended scheme. Global IME Promotion Plan 2. Its size will be up to 1.2 billion in the initial 1.2 billion (1.5 billion in case of excessive demand).

120 million units will be issued for the general public. A minimum of 100 units can be applied. Up to 12 million units can be applied. It has a duration of 10 years. Capital has projected an annual average return of 22.49 percent. According to this, the unit owners of this scheme will get a total return of 224.96 percent in 10 years.

The projected internal return rate is estimated at 16.88 per cent. Capital has projected to distribute 8 percent to 20 percent dividend to the unit owners of this scheme for the first nine years. There are currently two schemes in operation under the Global IME Mutual Fund. Out of this, The Advanced Scheme 1 has distributed 104 percent dividend in seven years and has given 10.16 percent fund buyback return. Similarly, the 10-year Global IME Balanced Fund 1 has a fund size of Rs 1.025 billion.

Global IME Capital Limited is the manager of this scheme. This capital is nepal’s first pure merchant banker established in 2008. This capital is a merchant banker licensed bank from the Securities Board of Nepal, in which Global IME Bank owns 81.50 percent.

In the unit of this scheme, investors can apply from all aswa member banks and financial institutions and their designated branch offices approved by the Securities Board. Apart from this, they can also apply through C-ASWA system using the software ‘Mero Share’ created by CDS and Clearing Limited online.

Credit rating company ICRA Nepal has given ICRA NP Issuer Rating A minus to the fund promoter and IRN AMC Quality 3 Plus rating to the scheme manager by Infomerics Credit Rating.