Asso. Prof. Dr. Kapil KhanalNirajan Poudyal2025-03-052025-03-052024https://hdl.handle.net/20.500.14540/24367The opening of Nepal's capital market has created new investment opportunities for both individuals and institutional investors. Investment decisions are typically guided by various decision-making tools, which are based on the premise that market variables and information structures influence investor choices and market outcomes. This study aims to analyze how different determinants affect investment decisions in the Nepalese stock market and to explore the relationship between these determinants and investment decisions. Primary data was collected through structured questionnaires distributed to investors, and the responses were coded and statistically analyzed using SPSS. The study employs both descriptive and analytical research methods: the descriptive approach identifies factors influencing individual investment decisions, while the analytical approach examines the impact of factors such as affordability, information, and herding on these decisions. The findings reveal that investment decisions are a critical tool for addressing organizational issues and disciplinary proceedings. Overconfidence bias was found to significantly influence investor behavior, with overconfident investors believing they are superior to their peers and the market index. The study also highlights the importance of psychological factors like overconfidence, anchoring, disposition, and herding in investment decision-making. All surveyed respondents acknowledged the influence of these psychological aspects. For Nepali investors, understanding the impact of psychological factors such as herding, anchoring, and overconfidence is crucial for making informed investment decisions. This insight emphasizes the significant role of human psychology in assessing investment decisions accuratelyen-USThesis