Once you buy shares on NEPSE, the real work begins — tracking your holdings, monitoring performance, and making decisions about when to hold, buy more, or sell. Many Nepali investors still rely on Excel spreadsheets or rough mental calculations, which works until you hold 10+ stocks across multiple DMAT accounts.
This guide covers practical approaches to portfolio management for NEPSE investors, whether you manage one account or handle investments for an entire family.

What Portfolio Tracking Actually Means

Portfolio tracking is not just knowing which shares you own. It means understanding:
  • Your cost basis — the total amount you paid, including broker commission and fees
  • Current market value — what your holdings are worth today at the last traded price (LTP)
  • Unrealized profit or loss — the difference between cost and current value (before you sell)
  • Realized profit or loss — actual gains or losses from shares you have already sold
  • Sector allocation — how your money is spread across banking, hydropower, insurance, etc.
Without tracking these accurately, you cannot make informed decisions about your portfolio.

Understanding WACC (Weighted Average Cost)

If you buy the same stock multiple times at different prices, you need to calculate your average cost per share. This is called WACC — Weighted Average Cost of Capital, though in portfolio context it simply means your average purchase price.
For example:
  • First purchase: 50 kitta of NABIL at NPR 1,200 = NPR 60,000
  • Second purchase: 30 kitta of NABIL at NPR 1,150 = NPR 34,500
  • Your WACC = (60,000 + 34,500) ÷ (50 + 30) = NPR 1,181.25 per share
This average cost is what you compare against the current market price to determine your actual profit or loss. It is also the figure you need when calculating capital gains tax.

Managing Multiple DMAT Accounts

In Nepal, it is common for one person to manage investments across several DMAT accounts — their own, their spouse's, parents', and sometimes children's accounts. Each DMAT account has a unique 16-digit BOID number and may hold entirely different stocks.
Practical tips for managing multiple accounts:
Keep a consolidated view. Whether you use a tracking tool or a spreadsheet, maintain one place where you can see the combined value and performance across all accounts. This gives you the real picture of total family net worth in the market.
Track each account's purpose separately. Some investors use one account for long-term holdings (banking and insurance stocks held for dividends) and another for short-term trading (hydropower stocks during seasonal patterns). Knowing the purpose of each account helps you make better buy/sell decisions.
Record corporate actions immediately. When bonus shares are credited, right shares are applied for, or cash dividends arrive — update your records the same day. NEPSE companies frequently issue 10-20% bonus shares, which changes your cost basis per share.

How Bonus Shares Affect Your Portfolio

Bonus shares are one of the most common corporate actions on NEPSE. When a company issues a 20% bonus, you receive 20 additional shares for every 100 you hold. Your total investment amount does not change, but your cost per share decreases.
Example:
  • You own 100 kitta of a company at WACC of NPR 500 (total cost: NPR 50,000)
  • Company issues 20% bonus shares — you now own 120 kitta
  • New WACC = NPR 50,000 ÷ 120 = NPR 416.67 per share
After a bonus issue, the stock price typically drops proportionally (called adjustment), so your total portfolio value stays roughly the same. The benefit comes over time as the company grows and the price recovers.

Right Shares: Should You Always Apply?

Right shares are offered to existing shareholders at a discounted price (usually NPR 100 par value). You have the right to buy additional shares proportional to your current holdings.
Things to consider before applying:
  • Look at the company's financials. If the company has good EPS and is growing, applying for rights at NPR 100 (face value) is usually a good deal since market price is much higher.
  • Check your liquidity. Right share applications require you to pay NPR 100 per kitta, and it may take 2-4 months before the shares are listed and tradeable.
  • Ratio matters. A 1:2 rights issue means you get 1 new share for every 2 you own. Calculate the total amount you will need to invest.
If you do not apply for your right shares within the given timeframe, your entitlement lapses and you receive nothing — so always watch for rights announcements from companies you hold.

Tracking Dividends for Tax Purposes

Cash dividends on NEPSE are subject to 5% TDS (Tax Deducted at Source), which the company deducts before paying you. You do not need to do anything extra for this tax — it is automatically handled.
However, you should still track dividends received because:
  • It helps you calculate your true total return (capital appreciation + dividends)
  • You need records if your total income crosses tax thresholds for filing
  • It shows which companies are consistent dividend payers
Many banking and insurance companies on NEPSE have a history of paying 15-30% annual dividends (combination of cash and bonus). Companies like Nabil Bank, Nepal Investment Bank, and Everest Bank have maintained consistent dividend payments over the years.

Sector Diversification on NEPSE

NEPSE has 13 sub-groups. A well-diversified portfolio for a Nepali investor might include:
  • Commercial Banks (NABIL, NIBL, EBL) — stable, consistent dividends, largest market cap
  • Hydropower (UPPER, NHPC, API) — seasonal earnings, growth potential from Nepal's energy sector
  • Insurance (NLIC, SICL, PLIC) — steady performers with regular dividends
  • Microfinance (CBBL, NMFBS, SWBBL) — high growth but more volatile
  • Development Banks and Finance — higher dividend yields but smaller companies
The key principle is not to concentrate all your investment in one sector. If banking sector faces regulatory pressure (which happens periodically with NRB directives), having holdings in hydropower or insurance provides a buffer.

When to Review Your Portfolio

Set a regular schedule:
  • Daily: Quick check of your top holdings' prices during market hours (11 AM - 3 PM)
  • Weekly: Review if any stocks have hit your target price (buy or sell)
  • Quarterly: Evaluate sector performance and rebalance if needed
  • After AGM season (Ashadh-Shrawan): Update for declared dividends, bonus shares, and rights
Avoid checking prices every five minutes — it leads to emotional decisions. NEPSE's daily circuit limit of ±10% means you will not miss catastrophic moves in a single day.

Summary

Effective portfolio management on NEPSE means tracking accurate cost basis (including adjustments for bonus and rights), maintaining a consolidated view across accounts, diversifying across sectors, and reviewing systematically rather than reactively. The investors who do well over time on NEPSE are typically those who track their numbers carefully and make decisions based on data rather than market rumors.