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SEF Current NAV : 9.49 as on 2024-05-17
SEF Current NAV : 9.49 as on 2024-05-17


Siddhartha Systematic Investment Scheme

What is a Mutual Fund?

A mutual fund is an investment vehicle that pools investors’ money and invests on behalf of the investors. It is an instrument that raises money from a group of people and invests their money in equities, bonds and debentures, and other money market instruments. Each investor owns units, which represent a portion of the holdings of the fund. Mutual funds are managed by professional fund managers who create specific portfolios with regard to investment objectives.

Unlike equities, mutual fund units do not give their unit holders any voting rights. A share unit of a mutual fund represents investments in many different stocks (or other securities) instead of just one holding. That’s why the price of a mutual fund share is referred to as the net asset value (NAV). Mutual Funds are registered in Securities Board of Nepal as per Mutual Fund regulation 2010.

What is Closed-End Vs Open-End Mutual Fund?

Closed-End Mutual Fund

A Closed-end mutual fund offers a fixed number of units and raises capital through the primary market via New Fund Offer (NFO) and operates for a fixed period as mentioned in the fund’s prospectus. 


After the issuance of NFO; the closed-end fund will be listed on the stock exchange. The potential Investors and the current investors (generally known as Unitholders) can Buy and Sell through a registered Brokerage firm on the secondary market (NEPSE) or the Current investor can hold the mutual fund till maturity and can redeem their investments at Net Assets Value at redemption date NAV.

Open-End Mutual Fund

An open-end mutual fund is an investment vehicle that uses pooled assets, which allows for ongoing new contributions and withdrawals from investors of the pool. An open-end fund is one that is available for subscription all through the year and is not listed on the stock exchanges.


The Fund manager i.e., Siddhartha Capital Limited sells units directly to investors and redeems them as well. Investors have the flexibility to buy or sell any part of their investment at any time at Applicable Net Asset Value (NAV). There is no maturity period in the open-end mutual fund and as long as there is demand for the fund, it goes on issuing units no matter how many investors are there.

What is “Siddhartha Systematic Investment Scheme”?

“Siddhartha Systematic Investment Scheme (SSIS)” – is an Open-Ended Mutual Fund Scheme of Siddhartha Mutual Fund with an initial corpus fund of NPR. 20 crores. The IPO of SSIS was allotted on 07th Shrawan, 2078 and its trading started from 07th Kartik, 2078.


The objective of the scheme is to generate long-term capital appreciation and income distribution to investors from a portfolio that is predominantly invested in equity and equity-related securities.

What are the benefits of investing in “Siddhartha SIP”?

Professional Management

A lot of investors do not have the time or resources to conduct their research and purchase individual stocks. This is where professional management becomes quite useful. Several people invest in mutual funds for the professional expertise it provides to one’s investments. A dedicated team of fund manager, researchers and analysts continuously research, select, trade and monitor performance of the securities.


“Siddhartha Systematic Investment Scheme” aims to minimize risk through diversification by investing in equities, debentures/bonds, money market instruments, bank deposits, other sectors prescribed by SEBON etc. The investments are spread over multiple assets classes, whereby it helps us to create an assorted portfolio that segregates the headwinds experienced in various sectors. The investments are made in a mixture of assets according to one’s risk appetite.


Mutual funds are more or less classified as liquid investments. As an investor you can redeem your unit holdings at any point (subject to exit load,). “Siddhartha Systematic Investment Scheme” will be valued at applicable NAV which be calculated on a daily basis, and an investor can sell their investments anytime without worrying about finding a buyer at the right price since the investor can redeem their units to the fund manager giving you any time access to your money. Further, funds are well integrated with the banking system — which means that most funds can transfer money directly to your bank account.


Mutual Funds offer a high degree of transparency as investment decisions made by the fund manager are highly transparent and the Investors can stay updated on information pertaining to the markets and schemes by logging on to our website and view the monthly reports that we publish and also view factsheets, offer documents, annual reports, etc.

Rupee Cost Averaging

When you invest in mutual funds through the SIP investment route, you can benefit from “rupee cost averaging”. This means you buy a larger number of units when markets are low and a smaller number of units when markets are high. This averages out your total cost while safeguarding you from the ups and downs of the market.


When you start a SIP, every month a fixed amount gets invested in your mutual fund. Investors receive shares in the form of units with the money invested and depending on the fund’s existing net asset value (NAV). When the NAV is high, fewer units are allotted. Similarly, when the NAV is low, mutual fund investors are allotted more units.

Power of Compounding

Compounding refers to the reinvestment of earnings at the same rate of return to constantly grow the principal amount, year after year. It is a technique of making your money work harder for you and is perhaps the most powerful tool that an average investor can use to plan for many of life’s financial goals, including retirement.

Tax Benefits

The government has currently been keeping Mutual funds as its priority. Income from mutual funds is exempt from Income Tax as per Income Tax Act, 2058.

What is Siddhartha SIP (Systematic Investment Plan)?
The Systematic Investment Plan (Siddhartha SIP) is a smart and hassle-free investment feature in an Open-End Mutual Fund Scheme- Siddhartha Systematic Investment Scheme (SSIS). It allows investors to make regular and fixed installments to the Fund Manager (Siddhartha Capital Limited (SCL)) to purchase additional units of SSIS. Investors can register in this scheme with a minimum SIP installment of NPR. 1000 per month and keep investing the fixed amount periodically for desired years.

The Systematic Investment Plan (Siddhartha SIP) is a smart and hassle-free investment feature in an Open-End Mutual Fund Scheme- Siddhartha Systematic Investment Scheme (SSIS). It allows investors to make regular and fixed installments to the Fund Manager (Siddhartha Capital Limited (SCL)) to purchase additional units of SSIS. Investors can register in this scheme with a minimum SIP installment of NPR. 1000 per month and keep investing the fixed amount periodically for desired years.

For example

Mr. Sharma decides to invest NPR 1,000 per month for a year.

When the market price of shares fall, Mr. Sharma benefits by purchasing more units; and is protected by purchasing less when the price rises as explained below.

DateNAVApprox number of units you will get at 1000
Total units at year end1178.929

Within one year, Mr. Sharma has 1,178.929 units by investing just NPR 1,000 every month at an average cost of 12,000/1,178.929 = 10.178. This is as against 12,000/10 = 1,200 units or 12000/11.5 = 1043.5 units or 12000/9.5 = 1,333.3 units if Mr. Sharma had invested a lump sum on 1 Jan, 1 Jun, or 1 Oct, respectively.

(Note: DP Fee NPR. 25 shall be charged while investing in SSIS in each transaction)

What is Dividend Reinvestment Plan (DRiP)?

A dividend reinvestment plan is a feature of Siddhartha SIP, where investors can re-invest the dividend received through this scheme and purchase units of SSIS instead of realizing it as cash. Investors have two options under this scheme:

  • Growth Option – In the case of Growth Option, the unit holders’ yearly dividend will be reinvested back into the fund by purchasing additional units from the amount received as an annual dividend
  • Dividend Option – In the case of the Dividend Option, the annual dividends announced will be paid out to unitholders at the time of dividend distribution

What are the prerequisites to start Siddhartha SIP?

  • Demat Account
  • Bank Account
  • Citizenship Copy
  • BO Confirmation/ Screenshot of Mero-Share Details
  • Birth Certificate, in case of a minor
How much money do I need to start a Siddhartha SIP?

You can start investing in Siddhartha SIP with a minimum of NPR 1,000. But it’s your choice completely to decide how much to invest each month. First of all, access your risk-bearing capacity and the amount that you can afford to invest each month consistently.

Can I customize my Siddhartha SIP?

Yes, you can. Although SIP is about investing a fixed amount every month, investors can customize the SIP amount and date by filling up an Amendment Form which is available after logging in to a SIP account.
Link to Sip Log-in : Log IN
How do I receive a username and password for the login account?

In order to create a login  account, you will receive an option to provide a user name after submitting a form for SIP registration or you can simply fill-up the sign up form available on our website after purchasing the SSIS unit from the first installment. Once you receive an email with your username and password from SCL, you will be able to log-in from our website.


Link to sign-up form : Sign Up


Link to Login form : Log In

Is the return of “ Siddhartha SIP” be guaranteed?

Investment in Siddhartha SIP is similar to any equity investment where dividends are only paid when profits are earned as well as capital appreciation is made through an increase/decrease in NAV and is subject to market risk. So, it does not offer a guaranteed return to any investors.

Will units of “Siddhartha Systematic Investment Scheme” purchased through Siddhartha SIP be listed in NEPSE?

The units of “Siddhartha Systematic Investment Scheme” will not be listed in Nepal Stock Exchange (NEPSE) or any stock exchange; whereby, the trading will be facilitated through the Fund Manager (Siddhartha Capital Limited) and designated branches of Siddhartha Bank Limited and authorized agents appointed by the Fund Manager. However, the investor can view his units purchased in the Mero share application of CDSC.

From where the investors can trade the units of “Siddhartha Systematic Investment Scheme”?
The Purchase and Redemption will be facilitated through the Fund Manager (Siddhartha Capital Limited) and designated branches of Siddhartha Bank Limited and authorized agents appointed by the Fund Manager. You can log into the website of Siddhartha Capital Limited ( and click on “SSIS Login” or directly login through mutual fund to purchase and redeem the units of SSIS
What is the sale and repurchase/redemption price?
The price or NAV a unit holder is charged while investing in an open-ended scheme is called the sales price. Repurchase or redemption price is the price or NAV at which open-ended scheme purchases or redeems its units from the unitholders. It may include exit load, if applicable. NAV value of SSIS will be posted every day on our website.
Link to daily NAV : CLICK HERE
What is Net Asset Value (NAV)?

Net Asset Value is the per unit market value of a mutual fund. It is calculated by dividing the total value of all the assets and securities in a fund’s portfolio, minus any liabilities, by the number of outstanding shares. It is simply a price you will pay to buy a unit of an open-ended mutual fund scheme.

What is the lock-in period for “Siddhartha SIP”?

There is no lock-in period for investments made in Siddhartha SIP. However, you will be charged an exit load of 1.5% of the gross sales amount if the units purchased are sold within 3 years from the date of purchase.

How can I take a service of Auto-Debit of Siddhartha SIP payment each month?
If you have an account at Siddhartha Bank Limited, then you can simply fill out the form of Standing Instruction (SI) and submit it to the bank to auto-debit your account on the due date. After having auto-debit, you do not need to make manual payments each month.If you have bank account in another bank but your account is linked to CconnectiIps then you can fill out e-mandate form online for auto-debit service for 6 months. Option for e-mandate is available online after logging-in to respective account.
What are the charges that investors should pay to purchase/redeem of the units?

The following charges shall be applicable to the investors to purchase/redeem the units of “Siddhartha Systematic Investment Scheme”

Entry Load (Applicable for Re-purchase of Units): None.

Exit Load (Applicable for Redemption of Units):

–  @ 1.5% of applicable NAV within 3 years of purchase

–  No exit load to be levied after 3 years of purchase

DP Fee : Applicable charges as per CDS Bylaws.

Capital Gain Tax : Applicable Tax as per tax rules and regulation.

Will I have to open a new Demat account to get registered in “Siddhartha SIP”?

It is not necessary to open a new Demat account to get registered in Siddhartha SIP, if you have one already. You can get registered in Siddhartha SIP by using your existing Demat account maintained at any depositary.

How much one investor can invest in “Siddhartha Systematic Investment Scheme”?

A single investor should invest minimum for 100 units and maximum for 10% of fund size of Siddhartha Systematic Investment Scheme.

How can I be assured about the purchase of SSIS with my money?
You can simply check the Unit Purchase statement after logging in.

Your SSIS holdings will also be shown in the meroshare application of CDSC
What is the size of “Siddhartha Systematic Investment Scheme”?

During the New Fund Offer (NFO) the size was NPR. 20 crores (or 200 million units). Likewise, the size of the fund will increase when investors will purchase additional units into the fund and will decrease when investors redeem their units from the fund. So, the scheme size will not be fixed as compared to closed-end funds.

Where will the investors get their units of “Siddhartha Systematic Investment Scheme”?

The investors can get their units of Siddhartha Systematic Investment Scheme in dematerialized form in their respective Demat accounts. Siddhartha Capital Limited will arrange to debit or credit the units of the Siddhartha Systematic Investment Scheme from the Demat account accordingly.

Who can invest in Siddhartha SIP?

Any Individual having a valid Demat Account (BOID) and any entity whose policy does not restrict them from investing can invest in Siddhartha SIP.

Can NRN or Nepali Residing Outside of Nepal Invest in Siddhartha SIP?
Whether NRN or Nepali Residing outside Nepal who has a valid Demat Account (BOID) can invest in Siddhartha SIP.