Gifting Stocks to Loved Ones: A Path to Financial Stability in Nepal

Is yours close one's birthday, anniversary, rice feeding ceremony or any other special occasion approaching? Are you planning to gift something valuable? How about gifting a stock this time? How will you feel when you get Stock as a gift in your special occasion?

In an age where financial literacy is becoming increasingly vital, there's a rising trend that could revolutionize how we think about gifts: gifting stocks. This innovative approach could pave the way for long-term financial stability, making it an ideal choice for occasions like birthdays, anniversaries, and other significant ceremonies. Traditionally, gifts are tangible items like toys, gadgets, or jewelry, which often lose value over time. However, gifting stocks represents a shift towards more meaningful and sustainable presents. By giving stocks, you’re essentially offering a piece of ownership in a company, which has the potential to appreciate in value and provide dividends over time. This not only enriches the recipient's financial portfolio but also instills a sense of responsibility and financial acumen from a young age.

For children, receiving stocks as gifts can be an excellent introduction to the world of investing. Imagine a child receiving shares of a company listed on the Nepal Stock Exchange (NEPSE) for their birthday. This not only makes the gift memorable but also piques their interest in the stock market. Over time, as they see their investments grow, they learn valuable lessons about saving, investing, and the importance of financial planning.

Take the story of Dipak, a father who decided to gift his 10-year-old daughter, Ruheen, shares in a prominent hydropower company for her birthday. At first, Ruheen was puzzled by the gift. She had expected a new toy or a gadget. But as Dipak sat her down and explained how the company worked, how electricity was generated, and how her shares represented ownership in the company, Ruheen’s curiosity was piqued. Over the years, Dipak showed her how to track the stock's performance, read financial news, and understand market trends.

In Nepal, where the stock market is gaining momentum and becoming more accessible to the general public, gifting stocks can be a game-changer. Whether it's shares in banking, hydropower, or other burgeoning sectors, this practice can serve as an entry point into the stock market for those who might not have considered investing before. Moreover, it encourages discussions about financial goals and planning, fostering a culture of financial awareness and preparedness within families. Nepal’s stock market, despite its challenges, has shown significant growth and resilience. Gifting stocks from companies that play a crucial role in the country's economy not only strengthens personal finances but also supports local businesses and contributes to national economic growth. This makes the gift even more meaningful, as it ties personal prosperity to the country's development.

For adults, whether it's a spouse, sibling, or friend, receiving stocks can be a thoughtful and strategic gift. It can help them start their investment journey or expand their existing portfolio. This approach aligns with the growing trend of prioritizing future value over immediate gratification, emphasizing long-term well-being and financial security.

Consider another story of Rupak and his brother, Dipen. On Dipen’s 19th birthday, Rupak gifted him stocks of a leading Nepalese bank NICA with 100 units of share. During the period suppose it cost him Npr 100 per share with total investment of Rs 10,000/-.  Today its value on 12^th Shrawan 2081 would be Rs 317000/-

Dipen, who had always been skeptical about investing, found himself intrigued. With Rupak’s guidance, he started learning about the stock market, attending investment seminars, and even diversifying his portfolio. What began as a simple birthday gift transformed Dipen's financial outlook and set him on a path to financial independence. Gifting stocks also aligns with the values of sustainability and long-term planning.

In a world increasingly aware of these principles, giving stocks can be seen as an investment in someone’s future. It’s a gift that grows with time, providing financial security and opening up opportunities that might not have been possible otherwise. Furthermore, this practice can be a catalyst for broader financial discussions and education within families. Parents and guardians can use these opportunities to teach their children about financial principles, investment strategies, and the importance of diversifying their assets. This knowledge can lay a strong foundation for financial independence and success in the future.

In conclusion, the idea of gifting stocks is more than just a novel trend; it’s a forward-thinking approach to financial freedom. By embracing this practice within the context of Nepal’s growing stock market, we can help our loved ones build a secure financial future, foster financial literacy, and encourage a culture of thoughtful and strategic gifting. So, the next time you're considering what gift to give, think beyond the conventional and opt for stocks—a gift that truly keeps on giving.

Article By: Dipendra Nepali