Asst. Prof Durga Datt PathakSachin Pathak2025-03-172025-03-172024https://hdl.handle.net/20.500.14540/24492The aim of this study is to investigate the effects of behavioral biases such as overconfidence, availability bias, herding variables, disposition effect on mutual fund decision in Nepal. The sample was collected using the convenience method and a total of 200 participants participated in the study. In this study, descriptive statistics, analysis of variance, independent sample t-test, correlation and horizontal analysis were used to analyze the data. Research results show that overconfidence, emotional performance and risk aversion have a positive effect on investment decisions, but the herding effect is not significant. Additionally, the results show that financial literacy has a negative impact on overconfidence, emotional distress, risk taking and animal husbandry. This means that a high level of financial literacy can help reduce the impact of these biases on investment decisions. This study provides insight to policy makers, stakeholders and financial institutions in developing policies and strategies to improve financial literacy. It is also useful for researchers and the public as it provides a deeper understanding of behavior and investment decisions. Future research could expand the research by including new independent variables such as shock and recognition bias. Future research could also investigate the effects of other factors, such as age and gender, on the relationship between negative attitudes and investment decisions. Overall, the research highlights the importance of understanding and managing biases in investment decisions and suggests that good financial literacy can help people make informed decisions about investing more.en-USThesis