INVESTORS' PREFERENCE TOWARDS SYSTEMATIC INVESTMENT PLAN (SIP) IN KATHMANDU VALLEY

Abstract

This study investigates the factors influencing investment decisions regarding Systematic Investment Plans (SIPs) among investors in Kathmandu Valley. The primary objective is to assess the awareness and key determinants affecting investors' preferences for SIP schemes. The factors are Professional Management, Ease of Investment, Return Perception, Diversification, and Liquidity. A descriptive and explanatory research design is employed, utilizing a structured questionnaire as the primary data collection instrument. A total of 384 questionnaires were distributed, resulting in 360 valid response. The data analysis involves both correlation and regression analyses to identify the relationships and predictive capabilities of the independent variables concerning the dependent variable, Investment Decision. The correlation analysis reveals significant positive relationships among all independent variables and the Investment Decision, with Professional Management demonstrating the strongest association. The regression analysis indicates that the model explains approximately 73.8% of the variance in investment decisions, confirming the collective influence of the identified factors. Coefficient analysis further highlights Professional Management as the most influential predictor, followed by Ease of Investment, Return Perception, Diversification, and Liquidity. The findings suggest that Professional Management and Ease of Investment are the most influential factors in investors’ decisions to engage with SIPs. The study concludes that enhancing the professional management of funds and simplifying investment processes can significantly attract more investors to SIPs in Kathmandu Valley, providing valuable insights for financial institutions and policymakers.