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My First Ever Investment in NEPSE: NEPSE Trading Journey S01E01

Click here to access all the articles of My NEPSE Trading Journey Series.

Immediately after I made my Demat Account and activated the meroshare platform to buy IPOs online, I was more than excited to enter in NEPSE. 

For the past few months or so, I had read a few books on the topic. The lockdown really made me do things I wouldn’t do otherwise. 

I summarized all my learning from different books in a notebook. I quickly found out that based on my risk appetite and the amount of seed fund (starting capital), momentum swing trading would be the best strategy for me. 

If you are a starter like me, I recommend these books:

  1. Think, Trade, and Grow Rich (About momentum trading and candlestick charting.)
  2. Trading in the Zone (Nothing to do with buy and sell. This is more about overcoming the psychological and emotional barriers in trading.)
  3. One Up on Wall Street (Written by a successful hedge fund manager, Peter Lynch. Although it is about fundamental analysis, it is an interesting read for beginners. 

I felt included in the NEPSE world when I logged into the meroshare platform for the first time. 

I saw that Laxmi Unnati Kosh, a mutual fund scheme managed by Laxmi Capital, was issuing IPO at Rs. 10 per unit. 

Note that companies issue IPO at Rs. 100 per share and mutual funds issue at Rs. 10 per unit. 

I applied for 200 units (Rs. 2,000)  immediately, just out of sheer excitement. Good news: All 200 units were allotted. 

Now, guys, let me tell you that from all the books, I have learned that is exactly what you don’t do. You do not put trades out of emotion or buy a stock just because its name sounds familiar. 

However, I wanted to make my first trade from a completely dumb stance without using any strategy. Just so I can remember it years later and laugh about it. And feel nostalgic. 

Also, mutual funds aren’t that profitable like investing in companies. The fund managers of mutual funds have to play it safe to protect their clients’ money. So, all I can expect is a consistent but small dividend payout from this investment. 

I will update this article to inform you about any dividend payment in the future or if I sell the shares to realize profit/loss. 

So, yeah. My first, dumb investment is 200 units of Laxmi Unnati Kosh bought without even looking at the fund’s prospectus. 

Update (2021/07/20): Laxmi Unnati Kosh declared a 25% cash dividend for the fiscal year 2077/78 today. While I write this, the fund has gained 10% in the secondary market (which is the highest permissible intraday gain), and the last traded price is Rs. 14.25 per unit. Note that the market is still open while writing this.

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