SIPs attracted investors in the past. Current low returns frustrate them
Summary
Young investors in Nepal are growing frustrated with low returns from systematic investment plans, with some closing their SIPs despite their popularity in recent years. Fund managers say the schemes still serve small investors, but market downturns have dragged down earnings and annualised returns.
Key Points
- Systematic investment plans attracted many young Nepali investors by offering an easy way to gain indirect exposure to the stock market.
- Growing dissatisfaction over annualised returns of around 5–6 percent has led some investors to stop their SIPs.
- NMB Capital says SIPs are designed for small investors who cannot trade directly in the market and still provide a useful option despite lower returns.
- The article says returns could improve if the stock market recovers and if funds are allowed to invest in foreign markets.
