There are various productive and non-productive investment alternatives in the world economy. Among which banking and non-banking financial institutions, manufacturing companies, hydropower, tourism industry, etc are mainly focused. Investment companies are among all non- banking financial institutions. Investment companies are the outcome during 20th century to strengthen the power of small investor through institutional mechanism. Investment companies has become center of attraction for most of the investor due to its feature of portfolio investment and various investment schemes targeted for the benefit of small investors in global scenario. Nepal, being a developing country mutual fund as a part of investment companies can be good sector for investment for people with low per capita income. Economic liberalization policy of Nepal has encouraged growth of mutual fund for the participation of small investors and along with capital market development. This report is based on current scenario of mutual fund in Nepal. It analyzes the benefits provided by mutual fund, the interest of investors to invest in mutual fund and role of mutual fund to support the Nepalese economy. We, being the students of management prepare this project for the partial fulfillment of our study. We have focused on NCM mutual fund, first mutual fund in Nepal to broaden our knowledge. Objective of the study
* To gain practical knowledge including theoretical knowledge about mutual fund performance. * To gain experience on project work for future reference. * For the partial fulfillment of our study
* To focus the achievement of mutual fund in Nepal
* To find out the working mechanism of Mutual Funds
* To find out the working procedure of NCM mutual fund in Nepal
Limitations of the study
We would like to mention that the report presented here may not meet the anticipation Some of the reasons are:
* The subject matter of “NCM Mutual funds in Nepal” is a fraction of a larger whole, so all aspect of Mutual fund may not be covered. * Due to the limited work performance by NCM mutual fund, information provide by it was very less. * Being a student, resource constraint was another factor that has limited the scope of the study.
HISTORY OF MUTUAL FUND in GLOBAL CONTEXT
Investment companies first appeared in the nineteenth century as a way for small investors to invest in corporate equities. Equities were then considered highly speculative and exotic, requiring a great deal of specialized knowledge and market savvy. Investment companies promised the small investors a relatively safe and inexpensive access to the stock market. The first modern investment company, the Scottish American Investment Company, was founded in London in 1860 at the beginning of a stock market boom that lasted until 1875. By then there were fifty investment companies in Britain. Many of them failed in the stock market crisis of 1890, and public interest in the stock market won until it was renewed by the boom of the 1920s. It was during the same boom of the 1920s that investment companies first became important in the United States. They had existed since the 1890s, but, by 1923, there were only fifteen with total assets of no more than 15 million. However, as stock prices soared in the late 1920s and some investors rushed to get in on the action, investment companies mushroomed. By 1929, there were some 400, with $3 billion in assets. Most of these early investment companies were closed-end companies. Some offers “families” of trusts with deferring investment objectives, much like the mutual funds of today. The stock market collapse between 1929 and 1933 was, of course, a catastrophe for the investment companies. Poor management and risky investment practices that had gone unnoticed in the boom became painfully apparent in the collapse. The 1930s saw a relatively rapid growth of open-ended companies (mutual funds),...