Why start a Systematic Investment Plan (SIP) in Nepal?
In the past few years, the NEPSE has seen significant interest in mutual funds. A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (monthly or quarterly) into a mutual fund scheme. This is highly effective in Nepal’s volatile market because of Rupee Cost Averaging.
The Power of Compounding
As seen in the calculator above, the longer you stay invested, the larger your “Wealth Gain” becomes compared to your “Invested Amount.” This is known as the compounding effect. Even a small monthly investment of Rs. 1,000 can grow into a significant corpus over 15–20 years.
Top Mutual Funds offering SIP in Nepal
- NIBL Sahabhagita Fund: Nepal’s first open-ended mutual fund.
- NIC Asia Dynamic Debt Fund: Ideal for lower-risk appetite.
- Siddhartha Systematic Investment Scheme: Popular for long-term goal planning.
- Nabil Flexi Cap Fund: Offers flexibility in asset allocation.
Note: While historical returns of many Nepali mutual funds have hovered between 12% to 18%, please remember that mutual fund investments are subject to market risks. Use this calculator for planning purposes only.
Financial Strategy Tool
Debt Repayment vs. Wealth Creation?
Have extra cash? Use our comparison tool to find out if you should pay off your loan or invest in an SIP for higher returns.
OPEN LOAN VS SIP ANALYZER →