In Nepal, securities or stock market and real estate business are among the sectors that are expected to generate income in a short period of time. But economists consider it a sensitive area.

Experts in this field share with us the important things to keep in mind while investing in both these areas, which have opportunities for profit and risk of loss.

The securities market, which can be entered even with a low investment, is considered by economic experts to be a riskier investment area than the real estate business.

But for those who lack time or capital to do business and industry, experts say that both these businesses can become areas of profit.

Investing in the stock market is beneficial

According to Radha Pokharel, President of Capital Market Investors Association, securities are an area where you can earn good profits even with less time and less investment.

“From students to housewives can invest in it. One can also participate in it by doing other jobs. There is no need to operate a separate office and there is no need for staff,” says Pokharel.

But according to him, the political situation of the country, the liquidity in the market and the rumors circulating from time to time are affecting the market and in such a situation investors should pay special attention.

Economists say that the ups and downs in the economy of Nepal and the world will affect the stock market as well.

For investors, the (share) stock market can be a good source of income, but experts say that it is wise to invest only after understanding its risks.


What should be considered while investing in the stock market?

According to Pokharel, the five main issues that investors should pay attention to are as follows:


Do not invest based on market trends

You should look at the profits earned by those companies in the past

The conditions and practice of paying dividends should be studied

Institutional governance and transparency should be seen

Invest only with basic knowledge of stock market

“Investors should avoid greed and fear. Pokharel says, "When the market goes up, don't be greedy and sell in a hurry... and if you have a very good stock when the market goes down, don't sell it in a hurry," says Pokharel.

"This money means that we have invested, we have to see that we get dividends later on from the profits of the company."


This is not a place to borrow and invest.



According to economist Chandramani Adhikari, there are two types of investors in the stock market namely regular investors and regular investors.

Regarding the precautions to be taken while investing in securities, the officer says, "Whether it is 'trading' for a short period of time or for the purpose of reaping long-term benefits, one should invest accordingly."

"It is better not to invest the money saved for education, health and daily living in the stock market," says the official.

He says that it is appropriate to invest by looking at the 'health' of the company, especially for long-term investments.

Stock market experts say that investing by taking a loan from the bank is also risky. Experts suggest that since the fluctuation of the price does not depend only on the profit and loss of the company, the risk will be reduced if the saved money is invested in it.

This is not a place to take a loan from the bank and invest. If you think that 'this is my savings, even if it doesn't last for a year or two, I won't have a problem', you should invest that money in the market, but it is better not to invest. Saved for regular and emergency expenses,” says Pokharel.


Technical information


 

If you want to invest for a short period of time, you need to know what causes the fluctuations in the market. For that, it is very important to know about technical analysis and market conditions,” he says.

"Knowing the technical analysis of the market helps to know in which direction the market is moving. For that one should understand and know about various indicators.”

According to his suggestion, if the aim is to make profit by long-term investment, it is necessary to know about the entire situation of the company.

Giri advises long-term investors to look at the following aspects of the company:

Balance sheet of the company

Profit and loss situation

Company's means of investment and earning

Share structure and earnings per share


Investment in real estate

According to economic experts, even though many people consider Nepal as a safe investment area, there are also people who lose their wealth in real estate transactions.

“Real estate is also not an area to invest too enthusiastically. What will be the policy of the government tomorrow, will we be able to use the real estate as planned or not?

Here are some tips to keep in mind while investing in real estate:

You have to decide whether it is suitable for your purpose or objectives

Legal documents should be checked for completion

It should be understood whether there is a match or not according to the measure and whether there is a dispute or case


Relationship between stock market and real estate business.

According to stock market expert Giri, both real estate and securities markets are complementary to each other.

“People don't invest in both at the same time. If any policy of the government increases the price of real estate, people leave their shares and go to buy land. Again, if for some reason there is a downturn in real estate or the rate of price growth slows, they come into the shares.

But share trading can be done according to one's ability with an investment of a few thousand rupees, while the real estate is of great value and cannot be sold in pieces.