Everyone starts as a beginner
Remember that uncle who bought bank shares years ago and now lives on dividends? He wasn't a genius. He learned the basics, invested a little regularly, and waited for years. Many ordinary salaried Nepalis have built a house, paid for their children's education, or secured a peaceful retirement this way.
But let's be honest: there is no guaranteed return in share market. What you can do is give yourself a better chance. SEBON, the regulator of our market, has shared some advice for every investor.
1. Look at the economy first
Share prices don't move on their own. Interest rates, bank liquidity, remittance, government spending and politics all affect the market. When banks have lots of money to lend and FD rates fall, shares prices usually go up. When liquidity is tight in banks, market prices usually fall.
As of September 2026, banks have enormous excess liquidity and most of the deposit rates or FD rates were around 4-5%. That is usually good for stock market. But along with interest rates, other factors can spoil the outcome very fast.
2. Count your profit after inflation
"I earned 10%!" sounds great, until you remember that cost of living also went up. Your real profit is what's left after inflation.
Nepal's average inflation was 3.08% in FY 2082/83, though prices were rising faster by the end of the year. If your stock investment or FD give you less return than inflation, your money is losing its purchasing power, even if your bank balance is growing.
3. Don't put all your eggs in one basket
"My friend said this hydropower company will fly, so I put all my portfolio into it." This is how most people lose money.
While investing in capital market, its wise to invest your money across different sectors like banks, insurance, hydropower and manufacturing. Likewise, overall investment portfolio shall be diversified across avenues like shares, FD, mutual funds and gold. When one sector falls, the other will protect you.
4. Check first, believe later
Telegram groups, TikTok videos and Facebook pages are full of "sure shot" stock tips. Some are honest guesses. Some are planted by people who want you to buy so they can sell at a high price.
Before you act on any tip, read the company's quarterly report company’s website or you can get detailed financial data in our Pro Fundamental section.
5. Think in years, not days
Quick profit is tempting, especially when the market is going up. But in NEPSE, biggest profits come from holding good companies through good and bad times, and collecting dividends and bonus shares.
Always invest based on your research, not based out of fear or excitement.
6. Learn to smell a scam
Someone promises "5% every month, guaranteed"? Walk away. Be extra careful if:
someone pushes you to decide today
an unlicensed "investment advisor" advises you to buy/sell
If it sounds too good to be true, it almost always is.
7. Never stop learning
The market is dynamic and keeps changing. New products, new rules and new sectors come every few years. Learn to read company reports, follow notices from the regulator, and learn the basics like EPS, P/E, book value and ROE. The more you understand, the less you need to depend on other people's opinions.
8. Protect your accounts
TMS and Meroshare have made investing easy. They also made fraud easy. So:
use strong passwords
never share your PIN or OTP with anyone
be suspicious of any call or message asking for your login details
9. Know the primary and secondary market
Primary market: where companies sell new shares (IPO, FPO, right shares), usually through Meroshare.
Secondary market: where you buy and sell existing shares through a broker.
Primary Market has always been treated like a luck-testing engine. Lottery allotment system has lured huge participation as people apply every IPO without even thinking twice. This might change in coming time as SEBON pushes book-building IPO system. But the secondary matket always surprises you. Before investing a dime, check the company's financials, compare it with other peer companies, and look out if the price is fair to buy.
10. Follow the rules
Use only licensed advisors and SEBON approved entities for consultation. Its equallly important to keep records of your trades.
So, where do I begin?
Don't try to fix everything at once. Pick the two or three rules you find hardest and start there.
Get these right, and the rest becomes much easier.