How to invest in Share Market of Nepal for beginners?

How to invest in stocks for beginners in Nepal?

Investing in stocks can be a daunting task for beginners, especially in a country like Nepal where the stock market is not as well-developed as in other countries. However, with the right knowledge and strategies, anyone can learn how to invest in stocks and potentially earn good returns on their investment. In this article, we will learn in brief on how to invest in stocks for beginners in the Stock Market of Nepal (NEPSE).


Before diving into the world of stock investment, it is important to understand the basics of the stock market. A stock represents a share in the ownership of a company, and the stock market is a platform where these stocks are bought and sold. The value of a stock is determined by the performance of the company and the demand for the stock. When a company performs well and its stock becomes popular, the price of the stock increases, and the investor can sell it for a profit. On the other hand, if the company performs poorly or the demand for the stock decreases, the price of the stock may go down, resulting in a loss for the investor.

Now that you have a basic understanding of the stock market, let’s delve into the process of investing in stocks in Nepal.

To invest in stocks in Nepal for beginners, you need to have a Meroshare account, a DEMAT account, a Bank account and a Brokerage account. Read through these articles to get a deep insight into how you can open these accounts.

How to open a bank account in Nepal?

Opening a bank account in Nepal is a relatively simple process that involves the following steps:

  1. Choose a bank: There are several banks in Nepal that offer a range of banking products and services. Some of the popular banks in Nepal include Nepal Investment Bank Limited (NIBL), Nepal SBI Bank Limited (NSBL), and Rastriya Banijya Bank (RBB). It is important to choose a bank that meets your financial needs and has a good reputation.
  2. Gather necessary documents: To open a bank account in Nepal, you will need to provide certain documents, such as a valid identification document (such as a passport or national identification card), proof of address (such as a utility bill), and proof of income (such as a salary certificate).
  3. Complete the application process: Once you have gathered the necessary documents, you can visit the bank branch to complete the application process. You will need to fill out an application form and submit the required documents. The bank may also ask you to provide information about your financial goals and objectives.
  4. Fund your account: After your application has been approved, you will need to deposit money into your account to start using it. You can deposit cash or checks at the bank branch, or transfer money from another account through online banking or a mobile app.
  5. Activate your account: Once you have funded your account, you will need to activate it by choosing a PIN or password for your account. You may also need to sign a customer agreement or other documents.

Opening a bank account in Nepal is an important step in managing your finances and taking control of your financial future. By following these steps, you can easily open a bank account and start using it to save, invest, and manage your money.

Step 1: Open a brokerage account

To begin investing in stocks in Nepal, open a brokerage account. A brokerage account is a type of account that allows you to buy and sell stocks through a broker. There are several brokers in Nepal that offer brokerage services.

To open a brokerage account, you will need to provide personal and financial information, such as your name, address, contact details, and bank account information. You will also need to choose a broker and complete the required paperwork.

Step 2: Choose the stocks you want to invest in

Once you have opened a brokerage account, the next step is to choose the stocks you want to invest in. There are several factors to consider when choosing stocks, such as the company’s financial performance, industry trends, and market conditions.

One way to choose stocks is to do research on the companies you are interested in investing in. Look at the company’s financial statements, read news articles about the company, and talk to financial advisors to get a better understanding of the company’s performance and potential for growth.

It is also important to diversify your portfolio, which means investing in a variety of stocks from different industries and sectors. This helps to reduce the risk of losing all your money in case one particular stock or industry performs poorly.

Step 3: Place an order to buy the stocks

Once you have chosen the stocks you want to invest in, you can place an order to buy the stocks through your brokerage account. You can either place a market order, which is an order to buy the stock at the current market price, or a limit order, which is an order to buy the stock at a specific price. You can place your order online using TMS service in Nepal.

When placing an order, you will also need to decide how many shares you want to buy and the total amount you are willing to pay. It is important to keep in mind that the price of the stock can change quickly, so you may end up paying more or less than you intended.

Step 4: Monitor your investment

After you have bought the stocks, it is important to monitor your investment regularly to see how the stocks are performing. You can check the current price of the stocks through your brokerage account or by looking at the stock market indices, such as the Nepal Stock Exchange Index (NEPSE).

If the price of the stocks increases, you can choose to sell them for a profit. On the other hand, if the price decreases, you may want to consider holding on to the stocks in the hope that they can increase later on.

How to invest in the Share Market of Nepal?

Investing in the stock market can be a great way to grow your wealth over the long term. However, it’s important to understand the risks and do your due diligence before diving in. This is especially true in developing markets like Nepal, where the stock market may be less mature and less regulated than in other countries.

Here are some steps to consider when investing in the stock market in Nepal:

  1. Understand the risks: Investing in the stock market carries inherent risks, including the potential for loss of your principal investment. It’s important to understand and be comfortable with these risks before you start investing.
  2. Educate yourself: Investing in the stock market requires a certain level of knowledge and understanding of financial concepts and the market. Consider taking a course or doing some research to learn more about how the stock market works and the various investment strategies you can use.
  3. Determine your investment goals: Before you start investing, it’s important to have a clear understanding of your financial goals. Are you looking to generate income, save for retirement, or grow your wealth over the long term? Your investment goals will help guide your investment decisions.
  4. Choose a brokerage: In order to buy and sell shares on the Nepalese stock market, you’ll need to open an account with a brokerage firm. Research different firms and compare their fees, services, and reputation before making a decision.
  5. Understand the tax implications: Investing in the stock market may have tax implications in Nepal. It’s important to understand how capital gains, dividends, and other income from your investments may be taxed. Consider speaking with a financial advisor or tax professional to help you understand these implications.
  6. Diversify your portfolio: It’s generally a good idea to diversify your investment portfolio in order to spread risk and potentially increase your chances of success. In Nepal, consider investing in a mix of domestic and international stocks, as well as other asset classes like bonds and real estate.
  7. Regularly review your investments: It’s important to regularly review your investments and make adjustments as needed in order to stay on track with your financial goals. This may include rebalancing your portfolio, selling lost investments, or adding new ones.

In conclusion, investing in the stock market in Nepal can be a great way to grow your wealth over the long term. However, it’s important to understand the risks and do your due diligence before diving in. By educating yourself, determining your investment goals, choosing a reputable brokerage, understanding the tax implications, diversifying your portfolio, and regularly reviewing your investments, you can set yourself up for success in the Nepalese stock market.