Expert Speaks:  Essential factors that needs to considered before investing in secondary market

Raj Kumar Timilsina Chairman, Nepal Investors’ Forum It is very important for the investor to identify the company and be well informed about its performance and management. Then, the investor should figure out the financial status of the company such as for how long has the company been in profit and providing bonus to its shareholders. Finally, investors must know their own capabilities such as the size of their investments, the kind of portfolio he/she wants to build and how long they can hold the shares of any company. Nitesh Sanghai MD, ABC Securities Private Limited Before investing in the market, setting an investment objective is very important. Investors should know whether they are investing for short term or long term and what are their required expectations from the market. After that it is very essential for the investors to realize the risks associated with the market and should be prepared for the losses too. Thirdly, company analysis should be done to find out which company is coherent with the investment objective of the investor. If the investor wants to go for short term investments than they should invest in companies that would grow faster and if the investment is for long term than they should invest in the companies that would provide dividends. Srijesh Ghimire CEO, NMB Capital Limited The foremost thing is to know about the sentiments of the market. Secondly, the investors should be aware about the fundamentals of the companies.  The investor needs to be a ratio analyst who knows how to analyze CD ratio, P/E ratio and should also know about the overall macro economic situation of the country. Lastly, he/she should be able to analyze the market trend by looking at the graph and also be able to identify the demand and supply pattern of the market.