Nepal’s Great Financial Shift: From Gold and Land to Capital Market
Summary
Nepali households are rapidly shifting from traditional investments like gold and land to the capital market, marked by a surge in Demat accounts to over 6.9 million and growing mutual funds. This transformation is reshaping Nepal's economic landscape despite challenges like financial illiteracy and cooperative sector crises.
Key Points
- Nepal has seen an explosive growth in Demat accounts, rising from 1.7 million in 2020 to over 6.9 million by 2025.
- Traditional investment instruments like gold, land, and cooperatives are losing their dominance due to inefficiencies, illiquidity, and trust crises.
- Mutual funds and Systematic Investment Plans (SIPs) are emerging as new long-term investment tools in Nepal's capital market.
- Government reforms led by Finance Minister Swarnim Wagle aim to strengthen the capital market and shift public perceptions from viewing it as gambling to a tool for economic growth.
