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Ethical Investment

In: Business and Management

Submitted By sthsalinaaa
Words 1299
Pages 6
THE DECISION TO INVEST: A CASE STUDY
© Rajan B. Paudel

Krishna and Radha’s family consists of seven members – Krishna’s old parents: the father 85 and the mother 83; three children: Roshon, aged 23; Prakash 17; and Chadani, 15. Krishna is now 49 and Radha is 47. They were married some 25 years back and lead happy family life. Roshan is currently studying MFC at a Tribhuvan University. Prakash is in 12th and Chadani is in 9th grade in one of the schools in Kathmandu.
Krishna completed B. A. from Tribhuvan University and joined government service as nayab subba (first-class non-gazetted employee) some 20 years ago. He was promoted to sakha-adhikrit (third-class gazetted officer) 10 years ago. Currently his salary is Rs 20,000 per month, but pockets only Rs 10,000 after deducting for provident fund and installment of home loan. Radha, an intermediate in commerce from Tribhuvan University, spent early years of her married life in looking after children and domestic chores. Radha started her job in a finance cooperative after Chadani was admitted to a school. Now she draws Rs 15,000 per month. Besides, Krishna’s family has rented part of their home at Rs 8,500 per month. So far, they have saved Rs 150,000 which they have deposited in Kumari Bank’s ‘Big Saving Account’. The Bank offered 10 percent interest annually at the time of opening the account some 5 years ago; but now offers only 4 percent. In addition, Krishna and Radha have some investment on shares of companies. Some of the companies in which they have invested are giving good dividend while a few others are not paying at all. On an average, their income from this source is about Rs 24,000 per year.
Thus, Krishna’s family earns about Rs 50,000 per month but due to high cost of living and educational expenses they hardly save Rs 100,000 per year after deducting living expenses, children’s educational

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