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Youth, Unemployment, and the Stock Market: Can Investing Bridge Nepal's Income Gap?

With youth unemployment rising in Nepal, many young people are turning to the stock market as a source of income. This blog explores whether investing can realistically empower Nepal’s youth and reduce income inequality.

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Nepalytix
Youth, Unemployment, and the Stock Market: Can Investing Bridge Nepal's Income Gap?

Introduction: The Struggle of Nepal's Young Workforce

Nepal is a young country. Over 60% of the population is below 35 years old. Yet, youth unemployment remains one of its most persistent and painful challenges.

According to recent government data:

  • Nepal’s youth unemployment rate is above 19%

  • Over 500,000 youth enter the job market each year

  • Thousands migrate abroad due to lack of domestic opportunities

In this backdrop, retail investing in NEPSE (Nepal Stock Exchange) is quietly gaining popularity among the youth. The question is:
Can stock market investing be a solution—or at least a bridge—to close Nepal’s growing income gap?

1. The Income Gap: Widening in a Digital Age

The income gap in Nepal is driven by:

  • Job scarcity, especially in skilled sectors

  • Limited access to financial education

  • Urban-rural divide

  • Heavy dependence on remittances

While the upper middle class invests in land, businesses, and shares, most youth are stuck between low-income jobs or waiting for foreign employment.

But now, a shift is occurring.

2. Rise of Retail Investors in Nepal

📈 Key Trends:

  • Over 1.2 million MeroShare users (as of 2025)

  • Thousands of young people applying for IPOs every week

  • Youth-led groups on platforms like Telegram, YouTube, and TikTok discussing NEPSE

Many first-time investors are between 18–30 years old, using their savings, part-time income, or remittance funds.

3. Why the Stock Market Appeals to Young Nepalis

🔹 Low Barrier to Entry

  • Open a Demat & TMS account under Rs. 1,000

  • Buy shares starting from Rs. 100–500 per unit

  • Free learning via online tools and social media

🔹 Flexible and Scalable

  • Can invest from a smartphone

  • No need to quit a job or migrate

  • Small investments can grow over time

🔹 Sense of Ownership

  • Investing gives youth a sense of control over their finances

  • Encourages financial discipline and goal-setting

4. Investing vs Traditional Employment: Can It Replace a Job?

Let’s be clear:
Investing in NEPSE is not a guaranteed income stream, especially in the short term.

🚫 Limitations:

  • Stock returns are unpredictable

  • IPO allotments are random

  • Inexperienced traders may lose money

  • Income isn’t fixed like a salary

But over time, with discipline, stock investing can:

  • Supplement income

  • Provide passive returns via dividends

  • Build wealth for the long term

5. Realistic Paths for Youth Using the Stock Market

🪜 1. Start with IPOs

Many start by applying to IPOs for low-cost exposure and potential quick gains.

🪜 2. Invest in Blue-Chip Stocks

Stocks like NABIL, NLIC, NIFRA provide regular dividends and long-term value.

🪜 3. Use SIPs or Mutual Funds

Start small with monthly investments via mutual funds like NIBL Sahabhagita or NIFRA Fund.

🪜 4. Learn Technical & Fundamental Analysis

Upskill through free YouTube content, books, or online courses to make better decisions.

6. Education Is the Missing Link

📚 Financial Literacy Still Lags:

  • Schools and colleges don’t teach personal finance

  • Most youth rely on friends or social media tips

  • Few know how to read a balance sheet or analyze a chart

Government and institutions must prioritize:

  • Youth financial education

  • Investment clubs in universities

  • Collaboration with NEPSE, NRB, and private platforms for training

7. Case Study: Suman, 24, from Pokhara

Suman started investing in 2022 using his part-time income from tutoring.
Today:

  • He has a portfolio worth Rs. 2.8 lakh

  • Owns shares in banks, hydropower, and mutual funds

  • Runs a small Telegram group teaching others about NEPSE

"I may not have a full-time job yet, but I feel like I’m building something for myself."

8. What Needs to Happen Next

✅ Policy Support:

  • Tax benefits or incentives for young investors

  • Improved digital access to stock trading in rural areas

  • Better regulation of investment education platforms

✅ Private Sector Role:

  • Brokerage houses should run campus seminars

  • Tech startups can build portfolio tools, finance trackers, or stock simulators

Conclusion: Investing Is Not a Shortcut, But a Stepping Stone

Can investing solve youth unemployment in Nepal?

No—not on its own. But it can:

  • Empower young people to take control of their finances

  • Reduce their dependency on unstable job markets or foreign employment

  • Close the wealth gap through long-term ownership and financial literacy

The real opportunity lies in combining education + access + awareness—and Nepal’s youth are ready.

Youth, Unemployment, and the Stock Market: Can Investing Bridge Nepal's Income Gap? | Nepalytix