⚡ Flash Summary

NBP Balanced Fund (NBF) reported a substantial 25.7% increase in fund size, growing from Rs. 1,470 million to Rs. 1,848 million for the quarter ended September 30, 2025. The unit price of NBF increased by 22.6%, outperforming its benchmark by 1.6%. The Fund’s NAV has seen a significant increase of 1399.5% since its inception. The stock market sustained its upward trend, delivering a strong 32% return during the quarter, contributing to the Fund’s performance.

📌 Key Takeaways

• 📈 Fund size increased by 25.7%, reaching Rs. 1,848 million.
• 💰 Unit price grew by 22.6%, outperforming the benchmark’s 21.0%.
• 🚀 NAV increased by 1399.5% since inception, beating the benchmark by 440.7%.
• 💹 Stock market delivered a strong 32% return during the quarter.
• 📊 Inflation averaged 4.2% during the quarter, down from 9.2% year-over-year.
• 📉 Core inflation eased to 7.3%, indicating a moderation trend.
• 🌐 Current account deficit widened to USD 624 million during 2MFY26.
• 💸 Remittances grew by 8.4% YoY during 1QFY26.
• 🏦 Foreign exchange reserves remained stable at USD 14.4 billion.
• 🤝 IMF’s second review under EFF concluded, unlocking USD 1.2 billion in assistance.
• 🌱 FY25 GDP growth revised upward to 3.04% from 2.68%.
• 🏢 Industrial sector growth led with 19.9% in 4QFY25.
• 📊 NBP Balanced Fund earned a total income of Rs. 354.11 million during the period.
• ✅ Net income is Rs. 338.92 million after deducting total expenses of Rs. 15.19 million.

🎯 Investment Thesis

Based on its strong performance, substantial growth, and outperformance against its benchmark, NBP Balanced Fund is a BUY. The fund’s effective management and robust asset allocation strategy make it an attractive investment. However, investors should monitor the fund’s risk profile, including non-compliant investments and broader market risks. A price target of Rs. 45.00 with a medium-term horizon (6-12 months) is justified based on continued market momentum and effective fund management.