Determinants of investment decision of investors in Nepal

Abstract

Individuals and institutional investors in Nepal now have investment opportunities thanks to the opening of the capital market. Usually, various decision-making tools are used to support investment decisions. The underlying presumption is that market variables and information structures systematically affect both individual investors' investment choices and market results. This study mainly focus on to analyze the impact of determinants of investment on investment decision in Nepalese stock market and determine the relationship between determinants of investment and investment decision in Nepalese stock market. Structured questionnaires that were given to and gathered from investors who made stock market investments were the main source of the primary data. The information gathered from the survey was coded for statistical analysis in order to facilitate data processing. The data were organized, significant connections were found, and differences or similarities with & between the various study variables were identified using the SPSS tool. A descriptive and analytical research approach has been used to achieve the study's goal. Analytical technique has been used primarily to examine the impact of affordability, information, and herding on investment decisions. Descriptive approach has been used primarily to identify the elements that influence individual investment decisions. The study discovered that one of the most useful tools for addressing issues and launching disciplinary proceedings in an organization has been the investment decision. This overconfidence bias affects how investors make investing decisions. Investors who are overconfident think they are superior to both their peers and a stock market index. Certain elements related to human psychology play significant roles in accurate assessment among the many components of investment decision measurement. All of the claims listed under categories like "overconfidence, anchoring, disposition, herding, and investment decision" were accepted by the study's respondents. It is important implication for Nepali investors to understand that psychological aspects such as herding, anchoring, overconfidence, and inclination play a big role in stock market investing decisions.

Key Words: Investment Decision, Overconfidence, Anchoring, Disposition Effect and Herding