Why Nepal’s Gen Z Is Flocking to the Stock Market: Five Driving Factors

Kathmandu, July 14, 2025 — In a trend reshaping capital markets globally, Nepal’s Generation Z is emerging as a rising force in stock investing. With growing digital access, appetite for financial independence, and an eagerness to explore high-risk, high-reward opportunities, this tech-savvy cohort is transforming Nepal’s equity landscape.

While concrete data remains scarce, market observers estimate that 10–15% of Nepal’s roughly 4.6 million Demat account holders are Gen Z investors—defined as those born between 1997 and 2012—equating to a potential pool of 600,000 to 700,000 young market participants.

Globally, over 77% of Gen Z individuals express interest in equity markets, according to multiple studies. This generation thrives on learning, data analysis, and digital engagement—traits that align well with dynamic investment strategies. Their willingness to take risks, including venturing into volatile securities, positions them as both bold and unpredictable players in the market.

Many Gen Z investors begin as students or early-career professionals, leveraging online content, social media influencers, and mobile trading apps to gain financial literacy. From TikTok breakdowns to YouTube explainers and Telegram stock groups, the accessibility of market insights has never been easier. This online-first approach contrasts sharply with older generations, who relied on brokers or traditional financial advisors.

However, the herd mentality is a notable concern. Influenced by peers or viral success stories, some Gen Z traders are prone to chasing hype stocks, often without adequate due diligence—leading to both windfall profits and sudden losses.

Market analysts identify five key reasons behind Gen Z’s growing interest in Nepal’s stock market:

1. Capital Flexibility
   Unlike starting a business, which often demands substantial upfront capital and operational know-how, the stock market offers low entry barriers. Even students and part-time earners can participate with modest funds, making it an attractive first step toward wealth building.

2. Quest for Financial Independence
   This generation is focused on earning early and becoming self-reliant. For many, the stock market represents not just a secondary income stream but also a tool for long-term savings and financial empowerment.

3. Ease of Access
   Online platforms have simplified every aspect of investing—from account opening and KYC to real-time trading and portfolio management. With smartphones and trading apps, Gen Z investors can execute trades within seconds.

4. Abundant Information
   Educational content related to stock investing is widely available online in both English and Nepali. From chart analysis to earnings reports, young investors are quickly acquiring knowledge previously reserved for financial professionals.

5. Social Influence and FOMO (Fear of Missing Out)
   The visibility of market success stories on social media drives many into the market. Viral posts showing profits and peer recommendations amplify participation—sometimes at the cost of rational investment behavior.

As Nepal’s capital market continues to mature, understanding and nurturing this new wave of investors will be crucial. Regulatory bodies and brokerage firms may need to focus on financial literacy, risk management tools, and tailored digital services to keep pace with the expectations of Gen Z.