Everything You Need To Know About SIP In Nepal

SIP In Nepal- SIP stands for a Systematic investment plan in which investors make regular equal payments into a mutual fund. SIPs allow investors to save regularly with a smaller amount of money while benefitting from the long-term advantages of DCA.

Formula To Calculate SIP units:-

SIP Unit = (SIP Amount – Applicable Charges *) / applicable NAV

Note: *Applicable Charges includes SEBON Fee and DP fee as per prevailing regulations.

Who Can Register For SIP?

An individual with having Demat Account can easily register for SIP (Systematic Investment Plan).

How Can We Register For SIP in Nepal?

You can register for SIP both online and offline. Here is how you should proceed while registering for SIP online. Let’s take the example of the NIBL Sahabhagita fund.

• First, Go to the official portal of NIBL Capital.
• Drag your mouse to the top right of the webpage where Mutual Fund is written. Then you can see several options, tap on Online – NIBL Sahabhagita Fund.
• Next new web pages open, where you could see, Unit Purchase, and SIP Registration. Dividend Re-Investment etc on the menu bar.
• Click on SIP registration. Now you need to fill up each and every detail correctly.
• Then proceed for payment. You can pay via Esewa, Connect IPS, Khalti, and NIBl mobile banking.
• After some time you would receive a mail from the NIBL Ace Capital with the receipt of payment.

Documents Required

• Citizenship’s Copy
• In case you are filling up the form of SSIS, then you also need to give BO or Mero share details.

Let’s start with the Pros and Cons of SIP.

Pros

• Imposes discipline of saving
• Can start with a small amount
• Risks less capital
• Reduces the overall cost of investment.

Cons

• Requires long-term commitment
• Could miss buying opportunities and bargains.
• If withdrawn early, penalties may be imposed.

Is there any SIP in Nepal?

Yes, there are several SIP in Nepal, including Sisshartha Systematic Investment Fund, NIBL Sahabhagita Fund, etc.

Which SIP is best in Nepal?

As of now, there are four open-ended mutual funds in Nepal. They are:-

• NIBL Sahabhagita Fund (NIBLSF)
• NIC Asia Dynamic Debt Fund (NICDDF)
• Siddhartha Systematic Investment Scheme (SSIS)
• NMB Sarak Bachat Fund- E (NMBSBFE)

Among these, you can do SIP on three of the open-ended mutual fund except NIC Asia Dynamic Debt Fund.

So let’s compare these three mutual funds:

NIBLSF V/S SSIS V/S NMBSBFE

Can I Cancel SIP anytime?

Yes, you can easily cancel SIP anytime you. Here are the simple steps to be followed to cancel your SIP. Let’s take the example of SSIS.

• First Log in to your SSIS Dashboard.
• You can see the option of SIP on the bottom left of your dashboard.
• Click on SIP
• Then you could see the last option of SIP Cancellation tap on the option.
• Lastly, you have to declare whether to cancel SIP or not. So click on the box and then the save button. Your job is done.

Besides this, you can edit several things from your dashboard, which include unit purchase requests, unit redemption requests, SIP amendments, SIP payments, and several other options.

Payment Methods

There are several methods to pay for SIP online. Some of the common methods include:-

• Connect IPS
• Khalti
• Esewa

What Is DREP?

It’s simply a Dividend Re-investment Plan where the investors can re-invest the dividend they receive from the mutual fund scheme. So the question How Can We Do This? might have been raised in your mind. Here it is, At the time of filling up the registration form, you can see the option of DREP at the bottom of the page. You should click on the option and proceed. Also, the concerned fund managers would send you an email regarding accepting the request you sent for DREP.