The NSE Investment Challenge is a Financial Education tool kit which is a simulation of the trading activities in securities listed on the Nairobi Securities Exchange (NSE). The NSE Investment Challenge is a flagship Corporate Social Responsibility (CSR) Project that NSE has been running for 8 years since 2008 in Partnership with Smart Youth Investments Ltd as the key software provider and logistics manager to the process. The competition aims at enhancing financial literacy in our youth and creating a culture of saving and investing. It also aims at inculcating prudent financial management skills with the intention of molding a new crop of future investors. It lays emphasis on the use of technology, information and research in making investment decisions to optimize returns. This is an annual online competition which is a simulation of the activities that happen around trading in securities (Bonds & Stocks) listed on the Nairobi Securities Exchange (NSE). Each participant gets Ksh 3 million virtual startup capital to trade with using live data from NSE during the competition period. They are mentored & judged by selected stock brokers and investment advisors.

Partners

1. Nairobi Securities Exchange
2. Smart Youth Investments Ltd.

Target Group.

The challenge participants are university, college and polytechnic students in Kenya. Objectives of the NSE Investment Challenge (Benefits to participants)
1. To reach the youth on innovative ideas to create alternative employment through use of technology.
2. To encourage innovation among the youth in respect to mobile technology and a savings and investment culture.
3. To connect to the youth market educationally and also builds their character of saving & investing.
4. To enhance financial management and entrepreneurial skills amongst the youth.
5. To encourage a culture of thrift or saving amongst the youth.
6. To teach the risks and gains involved while trading at the NSE.
7. To assist in investing this savings in productive enterprises e.g. through the NSE.
8. To popularize trading of Stocks & Treasury Bonds at the NSE amongst the youth.

Annual Calendar of Events

1. Registration Period is held from January to April
2. Competition period is held from May to July
3. Judging and awards are held from August to September.

Mentors

Mentors are used for purposes of giving investment advice to the participants on the online discussion forum. Mentors are drawn from stock brokers, investment banks and investment advisors.

Judging

Overall Winners will be determined at the end of the competition period. The winning portfolios are evaluated by an audit panel of judges from industry practitioners and they use a weighted average method of tallying the winning portfolio as follows:
A. 50% -Highest profits-This is the team with the highest overall portfolio value on the last day of the challenge.
B. 30% -Teams own research.
C. 20% Discussion forum participation

Prizes.

. Cash prizes. For top 3 winners to buy shares of a listed company on the NSE as follows:
. Internships are offered to winners by the NSE, Smart Youth and other sponsors.