EFFECTS OF PSYCHOLOGICAL FACTORS ON INVESTMENT DECISION

Abstract

The objectives of research are to assess the factors of psychological in the investment decision, to analyze the relationship between Overconfidence, Availability, Anchoring, Risk Aversion and Self-control with investment decision, to examine the effect of Overconfidence, Availability, Anchoring, Risk Aversion and Self-control on investment decision. The various article and thesis are reviewed from the google scholar and Shanker Dev Library. The article reviewed developed the conceptual framework with Dependent variables is investment decision and independent variable Overconfidence, Availability, Anchoring, Risk Aversion and Self-control. The descriptive and casual comparative research design is used. SPSS and Excel are the tools of data analysis. Total investors of the Kathmandu valley are the population of the research and the sample are the 400 as a convenience sampling technique used. Primary source of data is used and they are collected using questionnaire survey. The analysis methods are descriptive statistics, correlation analysis and multiple regression analysis. The tool for analysis is excel and SPSS. The finding of the research is that variables of the research is consistence or less fluctuating nature. The relationship between Overconfidence, Availability, Anchoring, Risk Aversion and Self-control with investment decision of the research. The relationship between Overconfidence and investment decisions positive but not significant. The impact of Risk Aversion and Self-control report to the investment decisions is negative and significant. The impact of Availability and Anchoring to the investment decisions is positive and significant.