Difference Between NEPSE and NEPSE 30

GP Chudal
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Difference Between NEPSE and NEPSE 30

The NEPSE index is a good indicator of the overall performance of the Nepalese stock market. It can be used by investors who are looking to track the market’s performance or who want to invest in a broad basket of Nepalese stocks.

difference-between-nepse-and-nepse-30

The NEPSE 30 index is a more representative benchmark of the Nepalese stock market, as it includes the 30 largest and most liquid companies. It can be used by investors who are looking to invest in the largest and most established companies in Nepal or who want to track the performance of the Nepalese economy’s leading sectors.

Let’s explore the difference between NEPSE and NEPSE 30 in detail:

BasisNEPSENEPSE 30
DefinitionA broad market index that includes all of the companies listed on the Nepal Stock Exchange (NEPSE).A market capitalization-weighted index that tracks the performance of the 30 largest and most liquid companies listed on the NEPSE.
Number of constituentsAll listed companies30 companies
Selection criteriaAll listed companies are included.Companies are selected based on their market capitalization, liquidity, and trading volume.
Rebalancing frequencyAnnuallySemi-annually
PurposeTo provide investors with a benchmark of the overall Nepalese stock market.To provide investors with a more representative benchmark of the Nepalese stock market and to attract more foreign investment.
Sector representationAll sectors are represented.A variety of sectors are represented, including banking, finance, manufacturing, and consumer goods.
LiquidityHighly liquid.Very liquid.
VolatilityMore volatile.Less volatile.
Potential returnsLower potential returns.Higher potential returns.
RiskHigher risk.Lower risk.
Target audienceAll investors.Investors who are looking for a more representative benchmark of the Nepalese stock market and for higher potential returns.

Which index is better to invest in?

It depends on your investment goals and risk tolerance. If you are looking for a broad market index that represents the overall Nepalese stock market, then the NEPSE is a good option. However, if you are looking for an index that is more representative of the largest and most liquid companies in Nepal and that has the potential for higher returns, then the NEPSE 30 is a good option.


It is important to note that both the NEPSE and the NEPSE 30 are subject to market risk. This means that the value of your investment can go down as well as up. It is important to do your own research and consult with a financial advisor before making any investment decisions.

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