Wednesday, April 14, 2021

WHAT IF 90's CHILDREN HAD INVESTED IN STOCK MARKET IN NEPAL AT THE AGE OF 20?


People who were born around 1986-1996 are known as 90's kids. In 2016, people born in 1996 turned 20 in. Let's see what if they had invested in the Nepalese stock market then would be like.

Here is the growth of NEPSE with some of the popular index of Nepalese stock market from 2016/01/01 to 2021/04/13.


Nepse



NEPSE had a growth of around 135% from 2016 till now.

Banking


Banking sector had a growth of around 80% from 2016 till now.

Microfinance


Microfinance sector had a growth of around 190% from Nov 2017 till now. 
    

Life Insurance


Life Insurance sector had a growth of around 185% from 2018 till now.

Non-Life Insurance


Non-Life Insurance sector had a growth of around 132% from July 2018 till now.


Now, let's see what if we had invested Rs 1000 each in the above sector in 2016  assuming that the stock is sold every year and the return is utilized for 5 year i.e. compounding effect.



We could have made 3.5 times more than the initial investment amount.

* This is just a tentative figure. Here in Nepal, we cannot invest in indices and we might not get return while calculating on individual stock.

** Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance.