Importance of Specialized Investment Fund (SIF) in Nepal

For least developed country like Nepal, SIF is a very good move to boost the economy. There are many cases in our society where people have lot of creative income generating ideas but what they lack is the capital and expertise to move ahead with their innovation. These small firms are outside the reach of stock market. And, if such companies decide to choose the banking and financial channel then, they have to maintain collateral with the banks, which not many people are prepared for. Here, SIF comes into play where the SIF companies generate the required capital for the start-ups and provide technical assistance with their expertise and knowledge and help such start up grow in the market. Nepal is an import dependent country, where the country depends on other countries even for the basic necessities. If such start-up companies come into play and are able to manufacture and meet the growing demand of goods and services then the countries dependence on other countries might lessen which will further help in the economic development of the country. Further, such companies might show global presence adding more value to the economy. Unemployment is the major problem of every economy. For a country like Nepal, where there are less job opportunities and where people have to go abroad in search of such opportunities, SIF operated start-ups can create job opportunities at every level to the people of varied skills. This can further help in the economic betterment of the country.

Private equity has a rich history as alternative asset class to be considered by individuals for the purposes of investment. Numerous international and local entities provide such a service for investment purposes. Special Investment Funds (the business) (SIF) here CWEDA EQUITY FUND LIMITED (CEF) is a proposed new business based upon the principles of new private equity asset allocations investments all managed within wise investors or Profound Investors PI-club membership. The most important and underlying principle of the business is based on a lower expected internal rate of return (IRR) along with the main criteria that all investments need to improve human upliftment and sustainability under the auspice of environmental, social and governance (ESG) principles in the long term as goal.