Prabhu Select Fund

Prabhu Select Fund is a closed-ended mutual fund scheme in Nepal, managed by Prabhu Capital Limited.It was launched with a fund size of NPR 1.25 billion, and listed on the Nepal Stock Exchange (NEPSE) on 21 June 2021 under the ticker symbol “PSF.” The scheme is structured with a maturity period of seven years. Its objective is to provide investors a diversified and professionally managed investment vehicle: PSF invests in a basket of publicly listed Nepalese equities, debentures/bonds, fixed deposits, and maintains liquidity to optimize returns, distributing risk across multiple assets rather than concentrating on a single stock or sector. Over time, PSF has shown active portfolio management as of mid-2024, the fund reported rising Net Asset Value (NAV), reflecting a combination of equity market recovery and rebalancing towards better-performing securities.For fiscal year 2081/82 (Nepali calendar), PSF’s board proposed a 12% cash dividend to unit-holders, signaling confidence in performance and commitment to providing investor returns. Because the fund is closed-ended, its shares are tradable on NEPSE, offering liquidity to investors but redemption is subject to secondary market conditions rather than direct redemption, which aligns with the typical structure of closed-end mutual funds in Nepal.In the context of Nepal’s capital market, PSF stands out because it offers an institutional-managed alternative to direct stock picking for individual investors helping smaller investors gain exposure to a diversified portfolio managed by a professional fund manager, without requiring the expertise or time to pick and monitor individual stocks. This can be especially valuable in a relatively volatile market where diversification and professional management help mitigate risk.