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Navigating the Economic Landscape: Understanding the Inflation in Nepal

What Is Inflation?

Inflation is like that cunning little price increase that happens all around us. Simply put, it’s when the prices of goods and services go up over time. So, the dollar you have today won’t buy you as much as it used to. Think of it as a shopping cart that gets more expensive each time you visit the store.

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What is inflation in  layman’s terms:

Inflation is when the prices of everyday things, like food, clothes, and toys, go up, and your money doesn’t buy as much as it used to. So, you might need more money to buy the same stuff. It’s like a sneaky increase in the cost of living.

Why Does Inflation Happen?

Several things can cause inflation. One major factor is when there’s too much money floating around in the economy. When people have more money to spend, demand for goods and services goes up, and businesses often respond by raising prices. Another reason is when the cost of making stuff (like raw materials and labor) goes up, which gets passed on to consumers in the form of higher prices. It may also happen due to the recent ongoing war between Russia and Ukraine.

The Significance in Economic Terms:

  • Purchasing Power: Inflation erodes your purchasing power. That means your money buys you less than it used to. So, if you’ve got a stash of cash under the mattress, its real value is shrinking over time.
  • Interest Rates: Inflation plays a role in setting interest rates. When inflation is high, central banks might raise interest rates to slow down spending. When inflation is low, they might lower interest rates to encourage spending.
  • Savings and Investments: If the rate of return on your savings or investments is lower than the inflation rate, you’re essentially losing money. For example, if your savings account gives you a 2% return, but inflation is 3%, you’re losing 1% in real terms.
  • Business Decisions: Businesses need to factor in inflation when setting prices, making investments, and planning for the future. High and unpredictable inflation can make it hard for companies to make wise decisions.
  • Wage Negotiations: Workers often negotiate for higher wages to keep up with rising prices. This can lead to a cycle where higher wages drive up production costs, and businesses respond with even higher prices.

Why the inflation rate of a country, especially Nepal, is a crucial indicator?

The inflation rate of a country, including Nepal, is a crucial economic indicator for several reasons:

  • Purchasing Power: Inflation directly affects the purchasing power of a country’s currency. When the inflation rate is high, the value of the currency decreases over time. This means that the same amount of money will buy fewer goods and services, and people’s standard of living can be weakened.
  • Economic Stability: High or unpredictable inflation can lead to economic instability. It can make it difficult for businesses and individuals to plan for the future, as they are uncertain about the value of their money. This can lead to lower investments and slower economic growth.
  • Interest Rates: Central banks use inflation as a key factor in determining interest rates. High inflation can lead to higher interest rates to control spending and control inflation. Conversely, low inflation can lead to lower interest rates to encourage borrowing and spending.
  • Savings and Investments: Inflation impacts the real return on savings and investments. If the rate of inflation is higher than the return on investments, the real value of savings and investments decreases.
  • Cost of Living: Inflation affects the cost of living. When prices rise, consumers may need to spend more money on basic goods and services, such as food, housing, and healthcare. This can particularly impact low-income individuals and families.
  • Business Decisions: Businesses must account for inflation when setting prices and making investment decisions. High and volatile inflation can lead to uncertainty, making it challenging for businesses to plan and make wise financial decisions.
  • Wage Negotiations: Inflation often leads to wage negotiations. Workers may demand higher wages to keep up with rising prices. When wages rise, businesses may raise prices, contributing to the inflation cycle.
  • Government and Monetary Policy: Governments and central banks use inflation targets as a key part of their monetary policy. They aim to achieve price stability and control inflation within a certain range to promote economic growth and stability.
  • International Trade: High inflation in one country can affect its competitiveness in international markets. A rapidly depreciating currency due to high inflation can make exports more attractive but imports more expensive, potentially affecting the trade balance.
  • Investor Confidence: High and unpredictable inflation can erode investor confidence, as they are uncertain about the future value of their investments. This can affect foreign direct investment and capital flows.

What Causes Inflation in Nepal?

Inflation in Nepal happens when the prices of things go up. It’s like when the cost of candy or toys at the store gets higher. This can be because of a few important reasons:

  • More People Buying Things: When many people want to buy the same things, like clothes or phones, the demand increases. When the demand is high, the prices can go up too.
  • Things Cost More to Make: Sometimes, it costs more to make things like food or clothes. For example, if the cost of making cotton shirts goes up, the price of shirts in the store may also go up.
  • Government and Money: The government and the central bank (Nepal Rastra Bank) can also affect inflation. If they make a lot of money available in the country, it can lead to inflation. If they reduce the amount of money available, it can help control inflation.
  • Taxes and Spending: When the government spends a lot of money and doesn’t collect enough in taxes, it can lead to inflation. More money going around can make prices go up.
  • Imported Things: Nepal gets many things from other countries. If the value of the Nepali currency (Nepali rupee) goes down, it can make these imported things more expensive, leading to higher prices.
  • Natural Disasters and Disruptions: Sometimes, natural disasters or problems with transportation can make it hard to get things to the stores. When there’s not enough stuff in the stores, it can lead to inflation.

So, inflation happens when many people want the same things, when it costs more to make things, when the government and the money supply change, when there are problems with imported goods, and when there are disruptions in getting things to the stores. The government and the central bank need to keep an eye on all these things to make sure prices don’t go up too quickly.

What are the effects of inflation?

Some effects of inflation are given below:

Reduced Purchasing Power: Inflation makes your money worth less. So, if you had Rs 10 before, you might only buy Rs 8 worth of stuff now.

Increased Cost of Living: Things like food, clothes, and housing get more expensive, which means you have to spend more money to maintain your lifestyle.

Impact on Savings: If your savings don’t grow as fast as prices go up, the real value of your savings can shrink over time.

Uncertainty: When prices are always changing, it’s hard to plan for the future. You might not be sure if your money will be enough for what you need.

Interest Rate Changes: Sometimes, banks raise the cost of borrowing money when inflation is high. This can make loans and mortgages more expensive.

Wage Pressures: When things cost more, people often ask for higher wages to keep up. This can lead to a cycle of rising wages and prices.

What is the current economic scenario in Nepal?

Economic Scenario in Nepal

Nepal’s economy is characterized by a mix of agriculture, remittances, and some manufacturing and services. Nepal has been experiencing steady economic growth over the past few years, and efforts have been made to improve infrastructure and attract foreign investment. However, the economy has faced challenges, including political instability and natural disasters.

Key Factors Influencing the Inflation Rate in Nepal:

  • Remittances: Nepal receives a significant amount of remittances from Nepalese workers abroad. This influx of money can lead to increased consumer spending, driving up demand for goods and services.
  • Agricultural Production: Nepal’s economy heavily relies on agriculture. Factors like weather conditions and crop yields can influence food prices, which have a substantial impact on inflation.
  • Exchange Rates: Nepal’s currency, the Nepali Rupee, can be vulnerable to fluctuations in exchange rates. A depreciating rupee can make imported goods more expensive, contributing to inflation.
  • Government Policies: Government policies related to subsidies, taxes, and public spending can impact inflation. For instance, reducing subsidies on essential goods can lead to price increases.
  • Global Commodity Prices: Prices of commodities like oil, which Nepal imports, can affect inflation. Rising global commodity prices can lead to higher costs for businesses and consumers.

Comparison with Global Inflation Trends:

Global inflation trends can vary widely depending on regional and international economic conditions. Many countries aim to maintain inflation rates within a specific target range. In some regions, inflation may be low and stable, while in others, it can be higher due to various economic factors.

It’s essential to note that inflation trends in Nepal may differ from global trends due to the country’s unique economic conditions and its dependence on factors like remittances and agriculture. For the most current and detailed information on Nepal’s economic scenario, inflation, and comparisons with global trends, this article recommends consulting the official sites of Nepal Rastra Bank and the International Monetary Fund(IMF).

Nepal vs. Global Inflation Trends:

Nepal’s Inflation Trend:

  • Nepal has experienced relatively moderate inflation in the past few years, with consumer price inflation averaging around 6-7%.
  • The inflation rate for consumer prices in Nepal moved over the past 57 years between -3.1% and 19.8%.
  • One key driver of inflation in Nepal has been the impact of remittances from Nepalese workers abroad. These remittances can boost consumer spending and drive up demand for goods and services, contributing to inflation.

Global Inflation Trend:

  • In the years leading up to 2023,  many developed countries experienced low and stable inflation rates, often targeting inflation rates of around 2%. For example, the United States, the European Union, and Japan had relatively low inflation rates.
  • Developed countries with well-established monetary policies have been able to keep inflation in check. Central banks in these countries typically target a specific inflation rate and use various tools to maintain it.

How is inflation calculated?

Inflation is typically calculated using a widely used and straightforward formula known as the Consumer Price Index (CPI). The CPI measures changes in the cost of a basket of goods and services over time, representing the average inflation experienced by a typical household. Here’s how inflation is calculated:

  • Select a Base Year: The calculation starts by designating a “base year” against which all other years will be compared. This base year is a reference point with a CPI value of 100.
  • Determine the Basket of Goods and Services: A “basket” of goods and services is chosen to represent what an average consumer typically buys. This basket includes items like food, housing, clothing, transportation, and more.
  • Price Data Collection: The prices of the items in the basket are regularly collected in the current year and compared to their prices in the base year.
  • Calculate the Cost of the Basket in Each Year: The total cost of the basket of goods and services in both the base year and the current year is calculated by multiplying the quantity of each item by its price.
  • Calculate the CPI for the Current Year: The CPI for the current year is calculated by dividing the cost of the basket of goods and services in the current year by the cost of the same basket in the base year, and then multiplying by 100:
  • CPI (Current Year) = (Cost of Basket in Current Year / Cost of Basket in Base Year) x 100
  • Inflation Calculation: The inflation rate is determined by measuring the percentage change in the CPI between the current year and the previous year. The formula for calculating inflation is:
  • Inflation Rate = ((CPI in Current Year – CPI in Previous Year) / CPI in Previous Year) x 100

This percentage represents the rate at which prices for the selected basket of goods and services have increased or decreased over the specified period.

For example, if the CPI in the current year is 110 and the CPI in the previous year was 105, the inflation rate would be calculated as:

((110 – 105) / 105) x 100 = 4.76%

This means that, on average, prices for the selected basket of goods and services increased by 4.76% over the specified period. Inflation can be calculated on a monthly, quarterly, or annual basis, depending on the reporting frequency of the data.

Role of the Central Bank and Government Policies in Controlling Inflation:

Central Bank’s Role:

The central bank, in Nepal’s case, the Nepal Rastra Bank (NRB), plays a pivotal role in controlling inflation. Its primary tool is monetary policy. The key mechanisms include:

  • Interest Rates: The central bank can adjust interest rates, such as the policy rate (the NRB Rate), to influence borrowing and spending. Raising interest rates can discourage borrowing and spending, helping to curb inflation.
  • Open Market Operations: NRB can buy or sell government securities in the open market to manage the money supply. Reducing the money supply can help control inflation.

Government Policies

Government policies also impact inflation which include:

  • Fiscal Policy: Government spending and taxation policies influence inflation. An increase in government spending without sufficient revenue can lead to inflation.
  • Subsidies: Government subsidies on essential goods can help control price increases.
  • Regulation: Ensuring fair competition and preventing monopolies can impact prices.
  • Trade Policy: Policies related to imports and exports can affect the cost of goods.

Overview of the Role of Nepal Rastra Bank (NRB) in Controlling Inflation:

Nepal Rastra Bank plays a crucial role in formulating and implementing monetary policy. Its primary objective is to maintain price stability, which includes controlling inflation. NRB regularly reviews the monetary policy and uses various instruments like interest rates, reserve requirements, and open market operations to influence the money supply and manage inflation.

Effectiveness of Government Policies in Managing Inflation:

The effectiveness of government policies in managing inflation can vary. Proper fiscal and subsidy policies, along with effective regulation, can help control inflation. However, their success depends on implementation, coordination, and responsiveness to changing economic conditions.

Future Outlook and Potential Policy Changes:

The future outlook for inflation control in Nepal will depend on the country’s economic and political developments. NRB and the government will likely continue to monitor economic conditions and adjust policies as needed to maintain price stability. Any potential policy changes will be influenced by economic indicators and objectives set by NRB and the government.

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FAQs:

What is the inflation rate of Nepal now?

The inflation rate of Nepal is 7.87 percent.

What is the present CPI of Nepal?

The present CPI of Nepal is 167.41

What is the inflation rate in NRB?

The y-o-y consumer price inflation remained at 7.44 percent in mid-March 2023 compared to 7.14 percent a year ago.

What is the GDP of Nepal?

The GDP of Nepal is around 36.29 billion USD (2021).

What is the role of Nepal Rastra Bank in controlling inflation?

Nepal Rastra Bank, as the central bank of Nepal, plays a significant role in controlling inflation. It uses monetary policy tools like interest rates and liquidity management to influence the money supply in the economy and manage inflation.

Conclusion:

In conclusion, managing inflation in Nepal demands a coordinated effort from the Nepal Rastra Bank and the government. With the current rate at 7.87 percent, the impact on consumers, businesses, and the overall economy underscores the importance of effective policies. Moving forward, adaptive strategies will be key to fostering economic stability and growth in Nepal.

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News

Top 10 tech news websites in Asian countries

Asia is a technological innovation powerhouse, with several venues devoted to disseminating the most recent developments and perspectives. Here, we examine the top 10 tech news websites from around Asia, each of which has significantly influenced the story of the region’s thriving tech industry. 

These platforms are an invaluable resource for tech lovers, industry professionals, and curious minds who want to remain up to date on the newest technical breakthroughs. They offer everything from in-depth studies to real-time updates.

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Tech in Asia (Singapore)

Leading platform Tech in Asia focuses on innovation, entrepreneurship, and technology news while covering a wide range of issues related to the technology industry. The site receives a lot of attention because of its thorough coverage of Asian tech-related topics. As a result of its intelligent viewpoints and high-quality information, it has become a highly respected source in the tech community.

Bangkok Post Tech (Thailand)

Bangkok Post Tech, which focuses on technological news and advancements in Thailand, is a respected information source. Although precise traffic statistics are not easily accessible, the Bangkok Post as a whole is regarded as a respectable publication, indicating that its technology section probably has a sizable readership. The site is well-known for its thorough reporting on regional tech news.

Gadgetguff (Nepal)

Gadgetguff is a Nepali-focused website that offers gadget reviews, lessons, and tech-related information tailored to the local audience. It may not have a lot of traffic, but Nepali IT aficionados can benefit much from it as a resource. The portal is a go-to resource for people in Nepal who are interested in gadgets and technology because of its specialized content.

VietnamNet Technology (Vietnam)

VietnamNet Technology is a well-known online newspaper that has a specific section for Vietnamese technology news and updates. The site receives a lot of traffic and is respected for covering a wide range of subjects, including technology. It is essential for informing the Vietnamese audience about the most recent advancements in the technology sector.

The Ken (India)

Offering top-notch business insights, startup stories, and technology news in India sets The Ken apart. Although its readership is smaller due to its membership model, the platform manages to keep readers highly interested. For Indian IT and business fans, The Ken is a reliable source due to its extensive research and in-depth analysis.

TechNode (China)

TechNode delves deeply into innovation, market trends, and the Chinese tech ecosystem. It has a sizable following both domestically and abroad and is now considered a reliable source of information about China’s IT scene. The site is well-known for its thorough reporting, which offers an insightful look at the vibrant digital landscape in the nation.

ZDNet Korea (South Korea)

In South Korea, ZDNet Korea is well-known for being a trustworthy source of business insights, industry advancements, and IT trends. ZDNet Korea has a solid reputation in the South Korean tech sector and probably draws a sizable readership interested in learning about the most recent developments in the industry.

Nikkei Asian Review (Japan)

The Nikkei Asian Review is notable for its coverage of Asian and Japanese business and financial news, including technology news. It has a sizable readership worldwide and is well-regarded for its thorough coverage. In the larger Asian context, the site is essential in offering insights into Japan’s tech sector.

Digital Inspiration(India)

In India, Digital Inspiration, a website that offers how-to manuals for mobile apps and consumer software, has become quite popular. India has 600 million smartphone users as per the most recent data, and this figure is increasing by 25 million every quarter1. Platforms like Digital Inspiration provide consumers looking for lessons, tips, and tricks because of the growing use of digital devices and the increasing demand for information. 

KrASIA(Southeast Asia)

KrASIA is a well-known source for business, technology, and startup news in Southeast Asia. KrASIA, which targets a tech-savvy readership interested in the ecosystem of the region, is renowned for its feature pieces and analysis and has made a substantial contribution to the conversation about Southeast Asia’s changing tech scene.

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FAQs

What are some of the other sites for tech?

Sure, Nikkie Tech Asia and South China Morning Post Tech also provide news on the latest techs and updates.

What language options do these sites have?

Most of the sites are in English, while some of the sites like KrASIA offer additional Asian languages.

Are they country-specific?

They provide news universally on the latest techs and gadgets, however, you can choose the site from your country for more refined news like Gadgetguff for Nepal or VietnamNet Technology for Vietnam.

Are these sites free or have paid access?

Most of these sites are free with ads, and some like The Ken have paid options.

Are these websites mobile-friendly?

Yes, most of them are optimized for mobile devices.

Do any offer accessibility features for visually impaired users?

Some websites, like Tech in Asia, have text-to-speech and other accessibility features.

Which platforms have translated content or multilingual options?

Some websites like VietnamNet Technology offer Vietnamese language options, while others may have translated articles or summaries.

Conclusion

To sum up, the top ten tech news websites in Asian nations provide access to the cutting edge of technological advancement. These platforms are essential for spreading knowledge and encouraging greater awareness of regional tech trends, from the rapidly developing tech centers of Nepal and Vietnam to the busy tech hubs of China and Singapore. 

These websites continue to be essential for informing and inspiring audiences about the ever-expanding possibilities in the world of technology, especially as Asia continues to lead the way in technical breakthroughs.

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insurance News

Learn all about pet insurance

Our pets are our family so it’s natural we want them to have a long and healthy life. Well, vet bills are no joke, and sometimes people do have to choose between their tiny best friend or a dent in the bank account. Insurance for your pet is here to ensure you don’t have to make a choice. In this article, you will understand the basics of insurance for your pet, what it is, how it works, what ailments it covers, how much you can save, and where you can get your insurance for your pet.

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What is pet insurance?

If you are a human with health insurance, then insurance for your pet shouldn’t be too complicated for you. If not, well it’s a simple concept; insurance for your pet is insurance for pets.  The reason for this is to lower the veterinary bills and the cost of medication for your pets.

How does pet insurance work?

Pet insurance covers dog insurance, cat insurance, and other animal insurance, providing financial protection for unexpected veterinary expenses. It includes coverage for accidents, illnesses, and routine care. Plans vary, offering different levels of coverage such as surgeries, medications, and preventive care. Pet owners can choose a policy that suits their budget and specific needs. It’s important to review and compare policies to make informed decisions about coverage.

While planning for pet insurance, be prepared with:

  • Keep your vet bill: After you pay for the treatment, keep the bill to present to your insurance company.
  • Present it to your insurance: After you present it to your insurance company, they will reimburse you after reducing the deductible amount.
  • Claim: You receive your claim.

What does pet insurance cover?

  • Accidents: Your insurance can help cover your canine friend’s medical bills in case of an accident. 
  • Illnesses: If your pet falls ill, your insurance can cover the bills after subtracting the deductibles.
  • Hereditary and congenial conditions: Some of the insurance companies also cover the bills for a hereditary condition. But check in with your insurance company if they provide just benefits.
  • Behavioral Issues: Your pet’s behavioral modification can also be covered by the insurance policy.
  • Therapies: If your pet suffers from certain difficulties requiring therapy, you will be reimbursed for the payment too.
  • Microchip implantation: Microchipping your pet is one of the safest ways to ensure your pet’s safety. This procedure is also sometimes covered by some of the insurance companies.

How much do you save from pet insurance?

Insurance for your pet will save you quite some cash if your pets fall ill. Your insurance will ensure that you won’t ever have to choose between choosing your pet’s life or causing some serious damage to your bank account. Well, that is the financial aspect of it. It will also save you a lot of emotional trauma.

But if you see it from your point of view as a loving pet owner, you probably won’t want to be in a position to ever use your pet’s life insurance. It is a paradox. You do not want to ‘waste’ money but, you also don’t want to take your chances if you’re ever put in a position where your fur baby requires intensive treatment.

Here is a real-life example of how these insurance work:

image of how pet insurance work

image of how pet insurance work

Where can I get pet insurance?

Some insurance companies provide insurance for pets. Some of the trusted pet insurance as of 2024 are:

  • www.petinsurance.com
  • www.geico.com/pet-insurance/
  • www.aspcapetinsurance.com
  • www.metlifepetinsurance.com

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FAQs

Is pet insurance worth it or not?

As a pet owner, avoiding the use of insurance would be the biggest ‘win’. However, if you’re questioning it from the viewpoint of ‘getting the financial investment’, then it may vary according to the situation and your pet’s ailment.

Do senior dogs get pet insurance?

Usually, it is difficult for senior dogs to get insurance, but you should enquire with your insurance company about their policies.

Will it cover all the costs of pet injuries and treatments?

Yes, it will cover the cost of treatment as stated in their policy. You should however ask them if they cover the treatment of the already pre-existing illness your pet has. Some may not agree to cover the cost of the pre-existing illness but may also not state that in the first place when signing up.

What insurance company for pets is the best for me?

The best insurance for your pet would be lifetime coverage. It provides the highest coverage for your pet.

Is there an age limit for insurance for pets?

Normally insurance companies have an age limit set at 10 years old. Enquire what the policies of your insurance company are and if they have a 10-year age limit policy, you should look for companies with higher age limits or no limit.

Conclusion

Today, our pets have become our family members and we try to do everything in our power to ensure they live long and healthy lives. But it comes at a costly price. A visit to a vet may cost you comparatively more than your check-up. This is when insurance for pets comes into play. It will care for the expensive surgeries and treatment your furry friend needs to lead a healthier life. 

There are some things in life we cannot compare finances to, and one such example is the time spent with our loving pets. It will help take a large chunk of the financial burden off your shoulders.

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News insurance

Dog Insurance: Types of dog insurance

Having a pet is not easy. You can love them and get them the best treats and give them endless cuddles, but sometimes that just unfortunately isn’t enough. In the face of a serious illness, it can be a difficult situation for both of you if the best you can do is pray because the medical bills are too expensive. 

This article will introduce you to the basics of dog life insurance, what does dog insurance cover? what different types of dog insurance are there, and what fog insurance doesn’t cover.

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What is a pet’s life insurance?

Like insurance for yourself, pet insurance is insurance for pets. They help in decreasing the financial burden when something bad happens to your pet’s health.

There are majorly four types of pet insurance:

  • Lifetime: This is a holistic pet insurance plan where you make annual payments and the insurance covers your pet’s treatment irrespective of the age and their condition(illness).
  • Annual: You make payments annually and you get the opportunity to change your plan preference each year.
  • Accident only: This is cheaper than other types of pet insurance plans. This plan does not cover the treatment of any illnesses your dog faces. It only covers the treatment for your dog’s accident( for example a car accident)
  • Maximum Benefit: You receive a fixed amount for treatment of any illness.

What do dog insurance plans cover?

Your dog insurance will help you with the vet bills and that will be a great help to you. 

  • Common illnesses: Dog insurance has your back when you’re treating your dog’s common illnesses such as diarrhea, cold, etc.
  • Chronic illnesses: If your dog has chronic illnesses such as arthritis or allergies, your insurance plan can help cover them too.
  • Hereditary condition: Some of our pups have a hereditary condition like hip dysplasia, blood disorders, or an eye disorder. Payments can slowly become hefty with time, this is when insurance comes into play.
  • Therapies: If your dog has aggression and requires therapy, some insurance policies also cover that.
  • Microchip implantation: Microchiping is one of the best ways to ensure your pet’s safety without stopping them from enjoying their freedom. Your insurance also covers this microchip implantation.
  • Testing and diagnostics: You may not think much of it first because of the relatively low cost compared to other ones but, when you add up the routine checkups and tests, it does dent your finances. To ensure you don’t ever have to stop because your savings couldn’t make up for the diagnostics, dog insurance is your way.

What are the types of dog insurance?

  • Accidents and illness coverage: This is the most sought-after insurance plan. It covers the illnesses, both common and chronic. And also a wide range of accident injuries like a torn ACL. However, it does not cover your wellness checkups and can be quite expensive.
  • Accidents-only coverage: This plan only covers accident-related injuries and does not cover a wide range of treatments. You can still get your diagnostics done, but if your dog has a hereditary problem, their treatment cost will be out of your pocket.
  • Wellness coverage: This is a routine wellness checkup plan. It includes deworming, vaccinations, and tick and flea prevention. It is relatively cheap compared to other plans but,

What does a dog insurance plan not cover?

  • Pre-existing condition: If your dog has a pre-existing condition, some of the insurance policies may not reimburse you for their treatment. Be transparent and question your dog insurance company what their policies are in this case. This saves confusion later in the future and will help you make proper.
  • Grooming: The grooming need of your dogs is also not taken care of by your insurance company. The cost of clipping and filing your furry friend’s paws and dying their fur unfortunately won’t be reimbursed.
  • Food and dietary supplements: Your dog’s dietary needs are also unfortunately taken care of by the insurance company.
  • Experimental treatments: Some of the human clinics may provide experimental treatments for cancer treatment for your pets. If you opt for this treatment, it unfortunately won’t cover the costs.

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FAQs

How common is dog insurance?

According to the updated survey conducted by the American Pet Products Association about 70% of the households in the US own a pet and about 27% of the household have a pet insured.

What happens to pet insurance when the pet dies?

If you have to go through the unfortunate event of bidding goodbye to your pet before the coverage time is over, you can call in and get a refund for the time left since your pet passed away.

What questions should I ask when getting a life insurance policy for my pet?

You can ask them about the different plans they have for different breeds of dogs and you could also ask them for suggestions regarding which policy would best suit you. Some insurance does not cover your pet’s pre-existing condition, so it is best to ask if they do and sort it out.

What is the best age to get insurance?

You should get your pet insurance when they are young so that your bills for vaccinations and testing can be reimbursed by the insurance company. It will also protect you from any early diagnosis of any chronic illness.

Does age matter in pet insurance?

If you have an older dog then, you may find it quite difficult to find a company that would insure your dog.

Conclusion

Dogs have been a man’s best friend for years now. For some of us, they are like family whom we love more than our dear life. However, all that love isn’t enough when your dog falls ill. It is when you feel the burden of finances. Sometimes, you can be in a position where you have to choose whether your pet lives or you face a financial dent due to the vet bills. To make sure you don’t have to face that, pet insurance comes to the rescue. 

Do not think this is a ‘bad investment’, for you know the value of your pet’s life. This will make sure you sleep easy at night and your pet gets the necessary attention they need on time.

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News insurance

What is umbrella insurance and why do you need it?

 

Umbrella insurance is the secondary layer of protection for when your primary insurance fails to cover your liabilities. You could save your life’s savings and protect your hard-earned assets at a small additional cost for umbrella insurance. 

This article will walk you through what umbrella insurance is, what it covers, how much it costs, what it and what it does, why you need it, and how it can help you.

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What is umbrella insurance?

It is a supplement that helps cover the liabilities that your initial insurance plan for automobiles, or other aspects of your life, has exhausted. To understand it more clearly, it simply is a backup insurance plan for your other insurance plans to ensure that one accident does not get you bankrupt. It springs into action when your insurance limits are exhausted. Your assets are safe till you hit the limit of your umbrella insurance.

Examples of umbrella insurance; how does it work?

Here are some real user reviews about umbrella insurance and its working procedures.

Here are some real user reviews about umbrella insurance and its working procedures.

umbrella insurance and its working procedures

umbrella insurance and its working procedures

What does umbrella insurance cover?

  • Injuries to others(Both mental and physical).
  • Damage to someone else’s property.
  • Lawsuits where you are accused of defaming someone else.
  • Lawsuits where you are the one being slandered.
  • Liable cases beyond your own country. (Injuries, damages or lawsuits abroad)

(Be thorough with the terms and conditions of your policy, they tend to differ from company to company)

How much does an umbrella insurance policy cost?

The cost differs from company to company. However, we can generalize the cost; on average, it costs about $150-$250 to get the $1M  umbrella coverage. It additionally costs another $100 for an additional $1M coverage.

Why do you need an umbrella insurance policy?

If you have amassed a lot of wealth or were born into it, it would be smart to get the umbrella insurance policy because the chances of you being sued are very high. It does not protect you from legal obligations but, it protects a large portion of your assets just in case you lose your case.

That does not mean people with a normal day job should not get it. Understand this, the person suing you won’t ask for how much you can offer but how much they can take. And you never know when you encounter a bad accident or when you mistakenly cause damage to someone else’s property. So, get your policy as soon as you can.

What is not covered by an umbrella policy?

  • Your bodily injury
  • Your property
  • Your criminal acts if they prove to be true
  • Damages caused by war, nuclear radiation, or terrorism.
  • Your business losses

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FAQs

Is it an insurance for an insurance policy?

Though it may sound like it, this is not an insurance policy for an insurance policy. Rather it is a supplement to what your primary insurance does not cover.

Is an umbrella insurance policy expensive?

It costs about $150-$200 for $1M coverage and it is an additional $100 for extra $1M coverage.

Do I get a free attorney if I have an umbrella insurance policy?

Yes, it also covers your attorney charge if you are fighting a wrongly sued lawsuit. So, it is a free attorney.

Why should I get umbrella insurance?

If you have high net worth you shouldn’t delay in getting your umbrella insurance. However, even if you aren’t wealthy, there is no surety that you won’t come across a big lawsuit or a bad accident. People can and will sue you for more than you can pay. So, getting it would be a wise move.

Is it necessary to get umbrella insurance?

If you’re wealthy, yes. If you’re not, still yes. The liability you can come across can always be bigger than you anticipate. So, why retain risk when you can transfer it?

Is umbrella insurance a waste of money?

No, if you have a significant asset, you can get umbrella insurance. Nobody knows when you come across a legality that can get you sued or take away all your assets. It will ensure you sleep easily at night.

Will my umbrella insurance cover my injuries?

No, it won’t cover your injuries but, the injuries you’ve committed to others.

Does Nepal have umbrella insurance?

Unfortunately, Nepal does not have umbrella insurance as of now.

Conclusion

From a practical point of view; you own a car with airbags. Why? So that you’re safe in case an accident happens. This does not necessarily mean you’re anticipating getting hit on the highway every time you drive. However, you wouldn’t want to get a cheaper car with no airbags and just trust your skillful driving. You never know what accidents you may get into or what lawsuits you may get involved in, this insurance is a precaution to ensure your lifestyle does not change in case it happens.

You wouldn’t get a car without airbags even if they were cheaper by a landslide, would you? Would you advise a loved one to skip the airbags?

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Index funds in Nepal: Is there index fund in Nepal?

First and foremost, Nepal unfortunately does not have index funds. But that does not mean SEBON (Security Exchange Board of Nepal) won’t introduce index funds in Nepal in the future. Or, if you’re not in Nepal but are interested in investing here, this is the perfect article for you which will give you all the information you need about index funds (in Nepal’s context).

Through this article, you will understand what an index fund is, what an index is, what are the benefits of investing in index funds, the drawbacks of investing in index funds, and whether index funds in Nepal should be initiated or not.

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What is an index fund?

An index fund is an investment fund that pools the money that you invest and reinvests that money into other companies. This enables you to get a diversified market portfolio and thus minimizes your risk. But you know how the saying goes, lower the risk, lower the return. However, do note that index funds won’t rise and fall like individual stocks. Instead, it keeps rising gradually over time. 

Should Index funds be introduced in Nepal?

Weighing both the pros and cons of index funds, it is safe to say that introducing Index Funds in Nepal would be a plus point. It is the question of whether the Security Board of Nepal would change the current regulatory framework to initiate Index Funds in Nepal. Nepal now has a growing economy as compared to the past 10 years according to Central Beaurea of Statistics Nepal, meaning both the companies and interested investors can earn and prosper in the long run using index funds. 

Index Fund is the easiest way to enter the capital market if you’re a beginner or do not have time to analyze the market and trade actively. Either way, it is a safe way for people to invest their money with relatively low risk.

What is an index?

It is a way of measuring the performance of the market by looking at a sample of stocks or a group of stocks. Now you may feel like you could create an index but, only the established financial companies design and maintain indexes.

To understand this better, you can learn about these three indexes:

  • NYSE Composite Index: The NYSE Composite Index shows the combined value of all common stocks listed in the New York Stock Exchange. This includes stocks from various sectors and industries, providing us with an overview of the entire NYSE(New York Stock Exchange).
  • S&P 500 index: S&P 500 or the Standard and Poor’s 500 measures the performance of all the 500 large companies listed in the United States. It is one of the most widely followed equity indices and is a major indicator of the U.S. stock market’s health.
  • S&P Mid Cap Index: This is a part of the S&P Dow Jones Indices Family. It measures the performance of 400 medium-sized companies listed on the Stock Exchange in the United States. 

What are the advantages of index funds in Nepal?

  • Easy to manage: If you are not actively trading stocks and don’t have the time, index funds are the best option. You do not have to worry about the stock market and the constant movement in the stock market.
  • Tax Benefits: You pay tax when you make a transaction, but since there are fewer transactions in index funds, fewer capital gains are leading you to enjoy tax benefits.
  • Low fees: You need not actively manage and trade in the stock market, this reduces costs compared to actively managing funds.
  • Broad Market Exposure: When you invest in index funds, you get market exposure to different stocks from different sectors. This lowers the risk.

What are the disadvantages of index funds in Nepal?

  • No control over the portfolio: You invest in index funds you do not get to pick and choose what stocks you want. Index funds are passively managed and you cannot select individual stocks of your choice. And even if your stock’s value is declining, you cannot sell them and the index funds will passively hold onto them.
  • Long wait: To reap the full benefits of index funds, you need to play the waiting game. If you want a quick return in a short period, index funds are probably not meant for you.

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FAQs

How do Index funds make you money?

The amount you invest is invested in other companies and dividends, interests, capital gains are paid to the investors regularly.

Can I invest in an index fund in India from Nepal?

You can invest in the Indian Stock Market according to the Portfolio Investment Scheme (PIS) of RBI(Reserve Bank of India) but will require a mutual fund account in India.

What are the three major index funds globally?

As of 26th December 2023, the top index funds are: NYSE Composite Funds, S&P 500, and S&P 400 are the major index funds in the global market.

Should I invest in Index Funds?

If you want to enter the stock market but, do not have the time to actively participate in trade or want to bear minimal risks, index funds are the way to go.

Are index funds better than Mutual Funds?

Mutual funds are comparatively more flexible than index funds because they are passively managed and you cannot actively react to the change in the market.

Is there index fund in Nepal

Currently, Nepal does not have any index funds available. However, there is a possibility that index funds may be introduced in the future.

Conclusion

The growing economy, stock literacy of the people, and the want of the people to enter the stock market seem like a green light for SEBON(Security Board of Nepal) to introduce Index funds in Nepal. Index Funds would increase investment in the capital market and also make it easier to track investments and capital gains.

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What is the difference between a limit order and a stop order?

 

Entering the world of trading is a fascinating journey, and understanding stock orders is essential to navigating it properly. Consider these orders as the instruments that assist you in managing and organizing your trades. We’ll be concentrating on two crucial instruments today: limit orders and stop orders.

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What is a Limit Order?

Limit orders are the preferred tool for price pickers who are extremely precise. They provide you the authority to specify the precise price you wish to sell or buy. Pros include managing trades at certain levels in a logical manner, while also preventing market fluctuations and controlling execution prices. But, there needs to be assurance of prompt execution, which is a trade-off, particularly in erratic markets.

What is a stop order?

Image Stop Orders as safeguards. They operate as protectors of gains or stops against losses by setting off market orders at a predetermined price. Their specialties include risk management, profit locking with buy stops, and loss limiting on open trades with sell stops. 

They may have slippage in erratic markets and have no control over execution prices, but their value in tactical buy/sell opportunities cannot be disputed.

Difference between limit order and stop order

FeatureLimit OrderStop Order
Common UsesBuying at a specific price or lower, selling at a specific price or higherProtecting profits, limiting losses, entering trades during a breakout
TypesBuy limit, sell limitBuy stop, sell stop, trailing stop
Best forPrecise entry/exit, managing price riskRisk management, locking in profits, capitalizing on breakouts, limiting losses
Price ControlYou set the priceNo control (except with stop-limit orders)
ExecutionOnly if the specified price is reachedTriggers market order when price hits stop price

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FAQs

What’s a limit order and a stop order?

A limit order sets a specific price to buy or sell a stock. A stop order triggers a market order when a stock reaches a certain price.

What is the difference between a limit order and a stop order?

The difference is in their purpose: a limit order specifies a price, while a stop order triggers at a designated price to minimize losses or secure gains.

Can I put a limit order and a stop order at the same time?

Yes, you can place both a limit order and a stop order simultaneously for the same stock.

What is the difference between a limit order and a stop order?

In short, a limit order has a set price, while a stop order triggers at a specified price; both can be used together.

Conclusion

As we come to the end of our exploration of limit and stop orders, keep in mind their distinct uses and subtleties. Your decision between these tools influences your trading strategy, regardless of whether you want strategic risk control or pricing precision. Your trading initiatives are fruitful as you ponder your objectives and risk tolerance. If you want to go deeper, think about learning more or speaking with a financial counselor.

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How do you study abroad when you have no money and poor grades?

It can seem overwhelming to start the path of studying abroad, particularly in the face of financial difficulties and subpar academic results. Nevertheless, it is feasible to make this desire come true with perseverance and thoughtful preparation. 

This is a thorough guide to overcoming the difficulties brought on by scarce resources and academic failures.

Financed but Failing Grades

Focus on Academic Recovery

Make improving your GPA a top priority by making thoughtful changes to your study strategy, utilizing specialized tutoring, and using academic support services. A significant improvement can make up for prior academic setbacks.

Consider Alternative Programs

Look into study abroad initiatives that don’t have as strict of a GPA requirement, such as ones that emphasize volunteer work or language immersion. Emphasize extracurricular activities, relevant professional experience, or personal essays to highlight your skills beyond grades.

Good grades, but bad finances.

Bad finances but, good grades

Let the Scholarship Seeker Out

Find and apply for a variety of scholarships that are appropriate for your field, experience, or financial situation by doing extensive research. When applying for scholarships, be tenacious and meticulous, emphasizing your special talents and goals.

Examine Cost-Effective Locations

Select study-abroad locations that provide reduced living expenses and program fees. More economical solutions are frequently available in Latin America, Southeast Asia, and Eastern Europe. Look at out-of-the-ordinary places that might have less financial obstacles.

Seek Work-Study Opportunities

To assist with living expenses, look for study abroad programs that include integrated internships or part-time work. Teaching English overseas can be a good choice if you’re looking for financial support as well as an immersion experience.

Bad grades and bad finances

Combination of Strategies

To take advantage of the most scholarship options, select cost-effective programs, and exhibit academic progress, combine the aforementioned strategies. Make the most of your special qualities to write a study abroad application that stands out.

Emphasis on Non-standard Options

As alternatives to standard semester-long programs, consider summer study abroad programs, online courses with foreign components, or volunteer work. Developing international experience in non-traditional ways can save money.

Develop a Resume for Non-Academic Fields

To improve your application overall, gain relevant experience through volunteer work, personal projects, or internships. Demonstrate your dedication, enthusiasm, and will to succeed beyond test scores.

Conclusion

Studying overseas can be life-changing, and you can still make the adventure even if you don’t have a lot of money or don’t get the best grades. Your dreams can become a reality if you have a little bit of perseverance, ingenuity, and resourcefulness. 

For people who are passionate about seeing the globe outside of their country, there are options to consider, including loans, part-time employment, crowdfunding, low-cost programs, and scholarships. Recall that with the correct approach and persistence, studying abroad can become a reality. After all, where there’s a will, there’s a way.

FAQs

1. Is studying abroad even possible with no money and bad grades?

Yes! While challenging, it’s achievable. Numerous scholarships, budget-friendly options, and alternative programs cater to various situations. Focus on showcasing your potential beyond grades and exploring financial assistance avenues.

2. What scholarship options are available for students with low grades?

Numerous scholarships prioritize need-based criteria over academic excellence. Research scholarships tailored to your field, background, or financial hardship. Apply to multiple programs and don’t be afraid to highlight exceptional extracurricular activities or personal achievements.

3. Are there affordable destinations for studying abroad?

Absolutely! Explore options in Eastern Europe, Southeast Asia, or Latin America, where living costs and program fees are often lower. Consider non-traditional programs like language immersion or volunteer work, which can be budget-friendly.

4. How can I improve my chances with low grades?

Demonstrate proactive academic improvement. Seek tutoring, utilize academic support services, and showcase positive changes in your course performance. Highlight other strengths in your application essay, like relevant work experience or impactful volunteer work.

5. Can I work my way through studying abroad?

Yes! Look for programs with integrated work-study opportunities or internships. Teaching English abroad or freelance work can also be viable options to manage expenses. Choose destinations with favorable visa arrangements for student employment.

6. What alternative options exist if I have both financial and academic limitations?

Summer study abroad programs, online courses with international components, or volunteer projects offer shorter, more affordable international experiences. These can build your resume and enhance your application for future study abroad opportunities.

 

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Stop Order: When to place an stop order?

What is a Stop order?

The stock market is a crazy place where prices fluctuate like a rollercoaster. The wonderful thing is that you have tools at your disposal to assist you in maintaining control. It is one of these instruments, and it’s like having your superhero cape for handling stock price fluctuations.

Stop order

So, to put it simply, what is a stop order? Essentially, it’s a letter that you give to your broker instructing them to purchase or sell a stock at a specific price. We refer to this particular position as the “stop price.” Consider it a warning indicator, similar to a red flag, alerting your broker to a potential trade opportunity when the stock hits a price you have already determined. It’s how you keep yourself informed and safeguard your investment.

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What are the types of Stop orders?

Sell stops

Consider sell stops to be safety valves for your financial investments. The system automatically sells your shares if the price of a stock drops below a certain threshold that you establish (for example, $45 for a stock that you purchased at $50). This protects your gains if the market declines and helps you minimize your losses if things go south.

Buy Stops

Consider buy stops as buttons for automatic purchases. The method will automatically purchase shares for you whenever a stock hits a preset price (let’s say $25 for a stock now trading at $20). In this manner, you can profit from a possible increase in the stock’s value without investing too soon.

Trailing Stops

Consider trailing stops as traffic-sensitive smart lights. These stops fluctuate in value in tandem with asset prices, consistently remaining a certain percentage below the going rate. You have more room for gains if the price increases because the stop price also increases. 

The stop price moves with the price, shielding you from sharp declines.

How does Stop Order work?

Select Your Indicator

Select a pricing point; it’s like putting up a warning sign for the market. This point may be either above the current price (buy stop) or below it (sell stop).

Await the Signal

Visualize a dance floor in the market. Similar to waiting for a rollercoaster to reach the peak before beginning the ride, your order remains silent until the market reaches the price you have selected.

The signal is on! It’s Action Time

 Whoa! When the market hits the price you’ve set, your order goes into effect and becomes a market order.

Market Order Takes Over

The market is now taking the lead. Due to fluctuations in the market, the price at which your order is filled may fluctuate somewhat from the one you have selected.

Purchase or Dispose as Scheduled

Your order will either seize the security (buy stop) or release it (sell stop) according to the signal you have selected. Imagine it like automatically getting off the rollercoaster at the precise location you select.

When do you place a stop order?

  • Locking in Wins

Don’t forget to lock in your wins if you’re having them! Put a sell-stop order below the going rate. Your shares automatically sell if the market declines past that amount, protecting your earnings.

  • Reducing Losses

If your stock isn’t doing well, set a cap on how much you can lose. Put a sell stop below the purchase price. Your order takes effect and lessens your losses if the stock continues to decline.

  • Seizing Chances

Do you believe a stock is going to rise? Place a purchase-stop order above the going rate. Your order is automatically placed if the stock rises beyond that threshold, allowing you to profit from the upward trend.

  • Playing it Safe When Wagering Against 

Exercise caution when wagering on a stock’s decline. Above the price of your short entry, place a purchase stop. Your order limits the amount you could lose if the stock rises suddenly.

  • Avoiding Market Jitters

Exercise caution when the market is erratic. When making new investments during volatile times, use stop orders. By doing this, you can stay out of the unexpected declines and increases in the market.

What are the examples of Stop orders?

Avoiding Big Losses

Sarah paid $50 for each of the 100 shares of ABC Company that she now owns. She puts in an order to sell them automatically if the price goes to $40 or less to make sure she doesn’t lose too much money. That way, if things don’t work out, she will have less money to lose.

Seizing Chances

David is monitoring XYZ stock, which is trading at $20. Though he is cautious about making an early purchase, he believes it may rise. Therefore, he places a buy order that will be automatically filled if the stock price rises to $25 or higher. In this manner, he can ride the wave and possibly profit if the stock continues to rise.

Playing it Safe When Betting Against a Stock

Maya is “shorting” the DEF stock, which is speculating that it will decline. She places an order to automatically purchase the stock if its price hits $45 or higher to safeguard herself if the stock unexpectedly rises. If things don’t work out as planned, this helps her reduce the amount of money she could lose.

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FAQs

What needs to happen to stop disequilibrium from occurring?

Disequilibrium in the market occurs when there's an imbalance between supply and demand. To fix this, market forces must come into play. This could mean adjusting prices, increasing production or consumption, or reducing trade barriers. Essentially, it's about finding a balance between what's being supplied and what's being demanded.

What is a buy-stop order?

A buy-stop order is like setting a trigger for a shopping spree. It activates a market buy order only if the stock price reaches or goes beyond a specific level. It's a way to automatically jump into a trade when the price starts going up, capturing potential profit opportunities.

What is a stop-limit order to sell?

Think of a stop-limit sell order as a safety net with preferences. It instructs your broker to sell a security only if the price reaches or falls below a certain level, but it should be at a limited price or better. This ensures that you get the best possible selling price.

How does a stop-limit order work?

A stop-limit order is like having a watchful eye on the market. It monitors the current price, and when it reaches a set stop price, it triggers a sell order. However, it adds an extra layer by setting a limit price. It attempts to sell at that limit price or better, but it might execute at a different price if market conditions change.

What is a stop market order?

A stop-market order is like hitting the sell button without hesitation. It triggers a market sell order immediately when the stop price is reached, regardless of the execution price. This prioritizes speed over having strict control over the selling price. It's a quick way to get out of a trade when the market hits a specific point.

Conclusion

To successfully navigate the ever-changing financial markets, stop orders are an indispensable instrument. These tools enable investors to manage their portfolios proactively, whether it’s by using buy-stop orders to capture possible breakouts, stop-limit orders to make smart sell decisions, or stop market orders to react quickly to market fluctuations. People may improve their risk management, safeguard earnings, and take advantage of market chances by learning how to use stop orders wisely. This will ultimately help them adopt a more robust and controlled attitude to their investing journey.

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Can a Nepali citizen invest in foreign shares

Can a Nepali citizen invest in foreign shares is the most asked question nowadays. Buying and selling stocks is the topmost and trending topic that has been arising today in Nepal. Investing globally can offer more chances to grow your money. It allows you to benefit from worldwide economic improvements and provides a broader range of investment options. We will discuss the investment opportunities that are possible for Nepali citizens.

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Let’s first understand the stock market in Nepal. Nepal Stock Exchange (NEPSE) established in 1994, actively supports the national economy by facilitating the buying and selling of shares, channeling funds to businesses, and fostering investment. 

Operating under the regulations of the Securities Board of Nepal, NEPSE employs modern technologies for efficient online trading. It lists companies from various sectors, allowing investors to trade shares during specified hours. NEPSE’s indices offer insights into market performance, attracting both domestic and international investors and contributing to the overall development of Nepal’s financial landscape.

Can a Nepali citizen invest in foreign shares?

As you know, Nepal has strict capital controls. According to the act provided by the Nepal Law Commission, Nepali citizens cannot lawfully invest abroad unless they acquire special permission from the Nepal government or Nepal Rastra Bank. Act Restricting Investment Abroad, 2021(1964)

Act Restricting Investment Abroad
Act Restricting Investment Abroad

This act is so old that King Mahendra Bir Bikram Shah Dev adopted it with the approval of the national panchayat. Although King Mahendra died, as did Nepal’s kingdom, this statute remains in place today.

According to the law, those in violation would face a fine equal to the investment and/or imprisonment for up to six months. Nepalese citizens are unable to transfer funds outside of the nation except for medical, travel, and educational needs.

What is the objective of this law?

Looking at it objectively, there are positive sides to this Act. Without it, Rich individuals might invest in foreign assets, leaving our homeland barren to gain higher investment returns. As we know Nepal’s economy requires a lot of investment, and NEPSE, in its early days, needs more attention and care to grow, even if it’s somewhat enforced.

The goal of the government is to stop money from leaving the nation. Similar to Nepal, a lot of countries with lower reserves of foreign currency prevent their citizens from making large-scale foreign exchange investments abroad. As a result, residents of these economies—including Nepal—are prohibited from making outside investments.

Some believe this law is illogical, outdated, and badly worked out. They believe that investment in any nation that allows such acts should be open to Nepalese citizens as well as all other free people. Still, laws are laws, and we have to follow them, particularly if they are provided by our constitution.

Understanding Act Restricting Investment Abroad, 2021(1964)

Some individuals may experience confusion regarding the “Foreign Investment and Technology Transfer Act, 2019” and the “Act Restricting Investment Abroad 2021,” mistakenly believing that these acts permit Nepalese citizens to invest in foreign stock exchanges.

Here is the fact: 

The 2019 Foreign Investment and Technology Transfer Act (FITTA) intended to bring in foreign investment, technology, and money for the export expansion and substitution of import industries. Similar to the “Act Restricting Investment Abroad 2021,” the FITTA bans people of Nepal from investing abroad. To improve the national economy and make it profitable, strong, and employment-oriented for long-term economic growth, the focus is instead on attracting foreign investment and technology.

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FAQs:

Does Nepal's judicial system monitor or keep an eye on the situation?

The government is monitoring but the fact many people use the loophole and invest in India and other countries. Nepal Law Commission may have personal insight on the matter.

How do I buy international stocks from Nepal?

Nepali citizens are not allowed to invest in foreign shares according to the policies of the Nepal Government and the central bank. If the Nepal government allowed Nepali citizens to purchase stocks from other countries, currencies that are accepted in the international market like Euros, USD, Yen, GBP, or Chinese Yuan are required. If you have an international bank account in any of these, it's better. Next, open a brokerage account with a company that lets you trade on different stock markets. Fidelity Investments is one such option, but it doesn't accept accounts from Nepal.

Conclusion: 

Nepal implemented tight capital controls under the 1964 Act Restricting Investment Abroad. This regulation requires formal authorization for international investments, which has drawn controversy. However, it should be noted that the major goal of this regulation is to promote domestic economic growth. Nepal’s government is not now interested in promoting a free market environment for foreign investments. After reading the blog you might be clear about Can a Nepali citizen invest in foreign shares.