AFFECTING FACTORS OF INDIVIDUAL INVESTOR’S BEHAVIOR AT NEPSE

Abstract

The purpose of this research is to analyze the factors that influence investment choices made by individual investors in Nepal who are participating in the primary market. The data collection process consisted of employing a random sample method to acquire information from 384 respondents. The study strategy used was descriptive and analytical. In the context of investment choices, a number of elements, including mental accounting, herding factors, heuristic factors, prospect factors, and market considerations, were investigated. The results of the descriptive analysis showed that respondents had favorable views toward investing choices, taking into account both possible profits and losses as well as the circumstances of the market. The multifaceted character of investors' decision-making behavior was brought to light by the findings of correlation and regression studies, which indicated strong positive connections between the aforementioned components and investment choices. For policymakers and practitioners who are interested in assisting Nepalese individual investors in making educated investment choices, it is essential to have a solid understanding of these determinative factors. Keywords: Investment decisions, prospect factors, market factors, mental accounting, herding factors, heuristic factors.