A diversified investment holding company in Nepal

In financial terms, investment is the commitment of money or acquiring assets like bonds, stocks, gold, real estate or anything else of financial value to generate greater value, appreciate in value, or generate regular income or profits later.

A portfolio is a collection of assets held to minimise the risk associated with a single investment. The idea of portfolio investment is to diversify the risk of one asset to another asset.

The stock market is a form of financial market to buy and sell the stocks of different companies listed on an organized exchange. It helps investors invest their idle funds into liquid assets to generate more returns, and acts as a barometer of the economy as it reflects economic conditions.

An Initial Public Offering (IPO) is a public issue of securities (commonly shares) by a company selling them to the public for the very first time, allowing the company to be listed and traded on a stock exchange. A Follow-on Public Offering (FPO) happens after a company is already publicly listed.

NEPSE is the acronym for Nepal Stock Exchange, the only stock exchange for trading of listed securities in Nepal. CDSC is the Central Depository and Clearing System in Nepal. OTC is the Over-The-Counter market. Rating companies are organizations that provide services related to the rating of organizations.

Investment companies are holding companies that hold assets in the form of a portfolio, managing them according to their investment strategy to gain compounding and greater returns in future. The benefits include long-term focus, portfolio management, expert management, growth potential and risk minimisation.