Kathmandu. Mutual funds have continued to declare dividends to investors after completing the audit of the last financial year 2082-83. So far, 25 different mutual fund schemes have declared cash dividends.

Himalayan 80-20 (15 per cent) and Nabil Balanced Fund-3 (2.5 per cent) have declared the highest dividend. Global IME Balanced Fund-1, Prabhu Select Fund and Prabhu Smart Fund will pay 12 per cent dividend each.

Similarly, Siddhartha Investment Growth Scheme-3, NMB Sulabh Investment Fund-2, Kumari Equity Fund and Kumari Dhanwaddhi Yojana have declared 10% dividend.

Reliable Samriddhi Scheme will provide 8.4211 per cent dividend, Siddhartha Investment Growth Scheme-2 and MBL Equity Fund will give 8 per cent dividend each.

Similarly, Citizens Super 30 Mutual Fund and NMB Saral Bachat Fund have declared 5.25 percent dividend each, Sanima Growth Fund 5 percent, Kumari Sunaulo Investment Scheme 4.7 percent, Sunrise Focused Equity Fund and NMB Hybrid Fund L2 have declared 4.5 percent dividend each.

Nabil Balanced Fund 2 has declared 3.5 percent dividend, NMB 50 3.15 percent, Siddhartha Systematic Investment Scheme 3 percent, Kumari Sabal Yojana 2.9 percent, RBB Mutual Fund-1 2.75 percent and Muktinath Mutual Fund-1 2.2 percent.

Not all mutual funds will be able to pay dividends this year. Some schemes will not declare dividends as the ability to distribute dividends will be determined on the basis of stock market performance, return on investment and financial condition of the scheme. Siddhartha Equity Fund and Siddhartha Equity Fund-2 will not pay dividends this year.

Mutual funds invest a large part of the collected money in the stock market. Dividends are distributed to the shareholders on the basis of the profits received from the transactions and investments in the stock market. When the market performs well, the dividend rate may increase, but when the market slows down, the returns may decrease or the dividend distribution may not be distributed.

The dividend rate announced this year has also varied from scheme to plan. Some schemes have declared dividends in double digits, while most of them will pay single-digit dividends.

There are two types of schemes of mutual funds, closed-oriented and open-ended. In a closed-oriented scheme, the unit holder who will receive the dividend is determined as per the date of book closure and the declared dividend is usually deposited in the bank account.