There are basically two ways to make money.

  1. You work for money: Someone pays you to work for them or you have your own business.
  2. Your money works for you.

The answer to the investment need depends on when you will need the money, your goals, and if you have taken sufficient protection against your investments.

For instance: If you are saving for retirement, and you have 35 years before you retire, you may want to consider riskier investment products, knowing that if you stick to only the “sav ings” products or to less risky investment products, your money will grow too slowly. On the other hand, if you are saving for a short-term goal, five years or less, you don’t want to choose risky investments, because when it’s time to sell, you may have to take a loss. Since investments often move up and down in value rapidly, you want to make sure that you can wait and sell at the best possible time.

According to reports, Nepal’s gross domestic savings rate of 5.26 % indicates Nepalese are consuming 94.74 % of the goods and services produced in the country. During eleven months of 2017/18, merchandise exports increased Rs.74.31 billion. The growth in merchandise imports remained at Rs.1107.4 billion. The workers’ remittances reached Rs.679.73 billion. The figure shows, we are a consumption and import based economy. To revive us from massive trade deficit we need to develop the habit of saving and investment to cut trade deficits. There is higher need for entrepreneurs, industrialists, bankers and other professionals to revive our economy.

There are various avenues of investments such as investment in equity shares, bonds and debentures, real estate, mutual funds, derivatives, etc. available to the public. There are people who are unaware about the existence of such opportunities, and the benefits that can be reaped them. Thus, Entrepreneurs Nepal organizes workshops and seminars for potential investors to aware the about the importance of investment and encourage them to start investing.

One of the basic investment strategy in Nepal is to investment in shares of listed companies. Share is a certificate representing partial ownership, or equity, in a company. Stocks are also known as equities and shares. When you buy stock, you are buying partial ownership of a company, including its assets and profits. After the purchase, you become a “shareholder.”

Investors can invest in shares through capital market. Capital market consists of primary market or secondary market.


Another safe and professional way of making investment is through Mutual Funds. A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets. A mutual fund’s portfolio is structured and maintained to match the investment objectives. Mutual funds are operated by professional money managers, who allocate the fund’s investments and attempt to produce capital gains and/or income for the fund’s investors.

History of mutual funds in Nepal, started with NCM mutual fund, issued by NIDC capital market. In 2067, mutual fund regulation 2067 was introduced. List of mutual funds in Nepal:

Siddhartha Equity Fund 1,537,359.70 10.11
Sanima Equity Fund 1,327,113.29 10.09
Siddhartha Equity Orineted Scheme 1,190,578.56 11.38
Nibl Samriddhi Fund 1 1,160,985.72 11.12
Laxmi Equity Fund 1,113,239.24 8.53
Nabil Equity Fund 1,109,833.03 8.55
NMB Hybrid Fund L-1 1,050,620.07 10.37
NMB Sulav Investment Fund-1 1,013,839.00 13.10
Global IME Samunnat Scheme-1 894,993.92 8.46
NIC Asia Growth Fund 854,599.44 10.05
Citizens Mutual Fund -1 844,754.03 10.20
NIBL Pragati Fund 592,853.04 7.67
Laxmi Value Fund-1 547,770.13 10.67

Note: Net Assets Value per share is equal to total market value of all the securities minus liabilities divided by the fund’s total number of share outstanding.

NAV= (Total values of securities- liabilities)/Share outstanding.