Concept Paper

On
KUSOM
Investment Club
Introduction
KUSOM Investment Club (IC) is basically an investment management firm that is managed
solely by students. It is a student managed investment fund in which money is invested at real
time. Like any investment management firm does we will study the Nepalese stock market,
create and manage the portfolio for KUSOM, make buying and selling decisions of stock for it
and clearly reporting each financial activity. Further, KUSOM IC will also organize training
events on stock market by collaborating with other organization; publish fortnightly, monthly,
semi-annual and annual report of our study and investment decisions. This report will be freely
available for everyone, which will enable them to make informed decisions on stock market.
All in all KUSOM IC will provide us the opportunity to understand the very basics of
Nepalese stock market. This club will enable people to trade stocks, understand the nature
companies and the market but most importantly we as students can apply our knowledge of
business into real time environment.
A student managed investment fund like KUSOM IC is not a game, nor a simulation. Here
the student are entrusted with the responsibility and granted the authority to invest real money.
The responsibility covers all aspects of the investment management process which includes
asset allocation, security selection, decision making, trading, monitoring and reporting. Given
what is at stake, there are some who might question the wisdom in trusting students with real
money but students are the future professionals. Today, Kathmandu University School of
Management is the Best Business School of Nepal, it has been a pioneer of quality education
and innovative teaching methods for the last two decades. We have all the available talent and
experience within our college boundaries. We can utilize the vast experience of our faculty,

knowledge base of our ALUMNI NETWORK and the infrastructure of our college. With the
help of professional and academic advisors, educational resources, and most importantly, a
high level of diligence, students can achieve results on par with those of true professionals. In
doing so, students gain valuable experience and insights that apply to business, in general, and
investing, specifically as well as a broad spectrum of other activities. On the other hand the
institute benefits by providing innovative and pioneering teaching methodology which will
further help state itself as a premier business college.
The following concept is being practiced in many international universities since sixty years,
especially in the United States. Some of the investment clubs handle a fund of more than 3
million dollars and even provide professional consultancy services to clients and corporate
houses. This will be the first time in Nepal that such an idea will be implemented, hence we
have to engineer our own model making it innovative and challenging at the same time.
KUSOM IC will be established on KUSOMs core commitments of fostering research,
interactive teaching and practical application of knowledge.
KUSOM IC will prepare students for high expectations and rigor such that of the corporate
world. It will provide hands-on learning environment in much the same way as laboratory
experiments or exercises would enhance learning of physics, chemistry, or biology. As with
science labs, the theory that is taught in textbooks and classroom lectures becomes tangible and
relevant.
KUSOM IC is an investment organization. In many ways, it will resemble a real investment
firm as it serves the same purpose. The club and its members will not invest haphazardly or
irresponsible at any condition. It will work diligently and with established knowledge and
practices.
It might be tempting to think how a group of students, who are, by definition, investing novices
and in the process of gaining investing knowledge, might appropriately be expected to build an
institutional quality investment fund. We believe that students are capable of being responsible
and building a thoughtful approach as many professionals. With the help of resources, advisors,
mentors we can leverage our own insights to build a compelling and successful fund.
Since we would be working on investment we will also require initially funding. The decision
to provide fund or not will be the sole discretion of KUSOM Administration. If the college
believes in us, we students would have the responsibility to manage those funds, be transparent
on our financial transactions, submit proper reports on our activity at regular interval and
submit all the profits that is made through the clubs investments.

Plan of Action
To initiate the KUSOM IC we have prepared a basic plan of action. Initially this plan is based
on sequential steps which is needed to be taken to form KUSOM IC. The following steps are
in no particular order and can be started as when necessary.
1. Formation of Club Structure and policy
To form a club we must decide on structure of its organization as well as its policy. We
have to decide on how the club will function, how many positions would be there, the

powers held by each position, the role of the college management and what would be
the main policy of club; all in all drafting a constitution. Through club structure we
would differentiate roles and functions of each entity within the club. KUSOM IC
would have one investment policy that would guide all our investment decisions. After
formation of club structure we will select the candidates from KUSOM for the
positions.
2. Training
It is necessary that after formation of club we have to train the students with of the
basics of the Nepalese stock market. We may have learnt about finance, economics but
we lack practical knowledge of the Nepalese stock market. Hence the first club
members would go through training and practice. We would simulate the current
market trends initially and would analyze our decisions, therefore creating a mock
environment during the training sessions. The training for club members could be
provided by our faculty, Nepal Dhito Patra Board or any agency which are providing
training on Nepalese share market. After its formation it would be the responsibility of
KUSOM IC to initiate such training for their members as well as other students. In
future the members for KUSOM IC will be selected on the basis of number of training
attended by a student.
3. Initiate
Once the club is formed with its members trained we could actually begin with real
time investments with the support from the KUSOM administration. The members of
the club will be responsible to handle the investments of the KUSOM portfolio under
the supervision of a faculty advisor.

Conclusion
We can state that the idea which we have proposed is not new in the world but for Nepal it will
be the first time. We fully understand the risks of managing funds and loss associated with it,
but it would provide students an opportunity to learn and the institute to glorify even more.
After KUSOM IC we students would actually understand about Nepalese Stock Market,
hence would be creating an efficient market for the future. Each year KUSOM will be able to
prepare their students with real life knowledge and practices that would surely help them in
future. It would be for the first time in Nepal that a business school provide their student to
actually perform like professionals and equally expect as such. We wish to work closely with
KUSOM administration in finalizing the basic structure, functions, working procedure and
investment philosophy. It will certainly create a new movement for all the college of Nepal to
follow and KUSOM being at the forefront.

AHEAD IN MANAGEMENT
ALWAYS!