Investors' Preference for Investment in Financial Instruments

Abstract

This thesis attempts to identify the investors' preference for investment in financial instrument. Questionnaire survey method is used to obtain the views of randomly selected 60 investors from different five broker companies. The preference of investors' for investment sector plays a vital role in the development of any capital market. The purpose of this study is to find out the investors' preference in choice of the financial instruments, specific factors, which affect the investors' decision, investors' preference for investment in different sectors of investment and investors' awareness. This thesis finds out various factors that would affect the investors' preference for investment. Two theories technical analysis and fundamental analysis have been taken into consideration for purpose and finding out factors affecting to investment. After this thesis I would like to say that maximum Nepalese investors' were preferred the common stock because of sufficient return. Dividend, capital gain and EPS makes Nepalese investor's more motivated for investment. Nepalese investors wants that kinds of bond which participates in profit and/or loss i.e. income bond. After this thesis we can conclude that Nepalese investors' were less aware about investment decision they does not take necessary information before or after investment.