Financial Market and fund management

financial market refers to a marketplace where creation and trading of financial assets , such as shares , debentures , bonds , derivatives , currencies etc. take place .it is aplace where trading of securities take place .there are different kind of financial market like share , bonds, forex , money , stocks etc. depending on these there are two types of financial market in Nepal like: 1.money market 2.capital market

when financial market fall down then there occur economic disruption and may lead to unemployment , loss of money of general people and other ecconomic crises may occur.market make it easier for buyer aand seller in trading their financial holdings.it create security products in order to take surplus small to big amount of money from general people and provide it to the deficit sector or companies so that they can get assistance in running their business.in doing so , it provides certain returns to those who have traded or funded their capital like as with cetain bonus rate, dividend , bonus share , right share and so on.so numerious type of buying and selling of securities, bond , share etc. take palce in this market. so there are different technical and fundamental analysis paramaneter needed to be dne while doing trading of such holdings.
money market includes :

• commercial paper


• treasury bills


• certificate of deposit

capital market includes :

• stocks


• bonds


• derivatives

money market
it is a section of financial market where financial instruments with high liquidity and short- term maturities are traded.its aim is to facilitate the lending and borrowing of money on short term basis .this is idealized by high level of security and low return of interest. it included trading of certificate of deposits(CDs), commerical paper, treasury bills which are available fro short terms .but these are not commonly traded in case of NEPAL till now.only NRB and commerical bank are the players in Money market which trade T-bills , inter-bank borrowing and so oon.
capital market capital market is a place where buyers and sellers engage in trade of financial securities like bonds , stocks etc.it is charaacterized by long term debt or equity are bought and sold .major securities traded in Nepal are equity shares, preferences shares , Mutual funds and debentures.major securities traded in Nepal are equity shares , preferences shares , Mutual funds and Debentures. there are two market under capital market which are :

• primary
• secondary market

in primary market IPO , FPO ,RIGHT SHARE , BONUS SHARE ETC FALLS and in secondary market NEPAL STOCK EXCHANGE FALLS. different broker companies helps in buying and selling of stock in Nepal like LINCH , Nasa securities etc.
FOREX market:
forex market is the market in which participants can buy ,sell, speculate on the exchange rate between currency pairs.forex provides cash in huge amount .it determines foreign exchange rate for every currency.it is the laargest market in the world followed by the credit market. generally large international bank play active role in the FOREX market . in nepal ADBL , NABIL BANK etc provides FOREX TRADING.it can provide huge return but also comes with high risks.forex market is made of two level :
interbank and over the counter (olc) market.
forex market is not determined by single market but it is determined by network of computers and brokers engaged globally and watching the true real time market value of any currency.
first level of forex is INTERBANK MARKET .the interbank market is where large bank trade currencies on behalf of their client and the second one is OVER THE COUNTER (OCL) MARKET where individuals does trading with brokers using online platform.
cryptocurrencies market> IS it legal in NEPAL?
currencies like BITCOIN ,ETHEREUM etc are some of the cryptocurrencies .cryptocurrency is a digital cash so it is intangible and is available in digital network.there is no intermediate body controlling the currency while transferring from ACCOUNT 1 TO ACCOUNT 2 in such currencies .it context of NEPAL , cryptocurrencies have been banned till now.

bitcoin has highest market value of cryptocurrency in the world which was formally anounced in 2008 and circulated in 2009 BS around the globe.blockchain is the technology that runs cryptocurrency securely.
fund managements
A fund is a pool of money set aside for a specific purpose .Funds management is the act or processs of overseeig and handling the cash flow assoiciated with any organization.it focus on managing cash inflow and cash flow of any entity .fund management of an financial institution refers to the planning of available and future funds to create a trade off between profitability and liquidity .
Types of fund managements are :

1. corporate fund management


2. personal fund

fund management refer to the management of asset as well and it covers the process of proper validation of an asset.the fund manager make sure that sufficiend fund is available from deposit for providing loan in other sector at proper time . for this several strategies are used.for thus mnager look at the both side of bank's asset and liabilities.it may be applied to both intangile asset like intellectual property or to tangible property like equipment and commodities.fund manager check about the cost aand risk involved to capitalize the fund flow management.
The fund manager study the client's needs and financial goals, creating an investment plan, and executing the investment strategy.
so fund management can be divided into 4 industries like:

1. Financial investment industry


2. Infrastructure industry


3. Business and enterprise industry


4. The public sector

PROBLEM AND CHALENGES OF CAPITAL MARKET.

1. lack of diversification


2. lack of awareness among general people


3. kathmandu centric


4. unethical practice by big investors


5. minimum institutional investors


6. insider trading


7. weak supervision


8. lack of transparency in credit ration


9. low debt security transaction

SOLUTION TO THE PROBLEM OF CAPITAL MARKET

1. emphasis on diversification


2. create awareness among general people


3. expansion of reach other than kathmandu centric


4. strict rules for credit rating


5. encourage institutional investors


6. strong punishment law against insider trading should be implemented


7. train for technical and fundamental supervision


8. commence foreign investment


9. incentivize debt security transaction