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How to invest in share market in Nepal

how to invest in share market in nepal


Investing is a wise decision that everyone should do. Investing share/stock is one option. The investment in stock can give the highest return. However, one should be aware of risks in the stock market. It is not too complex to invest in the share market in Nepal.

Share market in Nepal is a growing sector where an investor invests their money in the company and becomes a shareholder. People get into the share market either for the short term or long term intending to earn a profit. As the stock market is volatile no one knows whether they get profit or suffer loss. A wise investor can make a decent amount of profit every year with technical analysis and experience. If you are new to the stock market then I would suggest reading this article

Nepal Share Market is not too big as other countries have. There are only a few investors in the Nepalese Share market. Therefore, there is a huge scope of new investors in NEPSE. It is growing slowly. As it is mentioned above, when it’s to invest in the share market, there are two types of investors. One is a short term investor and another is a long term investor. Short term investor uses technical analysis, their knowledge, and experience to earn profits. Short term investor is aware of daily market ups and downs. Long term investors choose some stock of the company and sit back to get dividends every year avoiding risks.

How to invest in the Nepal stock market (NEPSE)

If you are a beginner then you have to do certain things to start trading in the share market. You need to have a bank account in any commercial bank in Nepal. After that, go to the bank ask for DMAT form, Meroshare form, CRN form, and fill all these forms. With DMAT form your DMAT account will open, with meroshare you will get login I’d and Password of meroshare. CRN will help you while applying IPOs. Meroshare account will help you to track your share portfolio and other several things. You can also apply IPOs, FPOs, Reserved Share, etc with meroshare and you don’t have to visit the bank again and again for the same thing. Read (this post) for more info.

Investment Guide;

Considering the following points might benefit you.

  1. It is not a good idea to invest money that you can’t afford to lose. Invest only that amount thinking if you lose you won’t be affected.
  2. Never invest all the money at once in a single company. Always try to maintain a portfolio because if one company didn’t earn profit another company’s profit can manage your loss.
  3. Always calculate risk and return.
  4. Investing in IPOs is less risky but it is not risk-free. 
  5. To be a trader and seek a short term investment you need to do proper analysis to minimize risk and make a profit.
  6. Use some indicator tools for technical analysis. Click here to see the NEPSE chart.
  7. Instead of listening to other’s opinions make your own rules of investment.
  8. Always have patience in the share market. Never take decision based on your emotion.
  9. Never think that you have started investment today and you will get profit from tomorrow.
  10. The stock market is simple, overthink makes it complex.

Who can get into the share market in Nepal?

There is no barrier to the investor of the share market. Anyone who wants to invest in the share market can get into the share market. However, you need a bank account and fill KYC in the broker office you need citizenship for this but if you have knowledge then you can use your parent’s documents to trade in Nepal stock exchange. 

Can only management students can get into the share market?

Management students may have certain ideas about the share market as they have to study in their course. There is a big misconception that only management students can trade in the stock market. Anyone can start trading in the share market and gather knowledge and experience. Students of any stream can get into the stock market. If you don’t have any knowledge about trading then you can start with IPOs investing as there is less risk. As of now, you can get 1 share for Rs 100, which is the par value of the stock. If you are a student then start investing in IPOs from now.

Disclaimer: This article is only for educational purposes. Investing in stock has risk which investors themself need to consider.




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