PAST BEHAVIOUR, FINANCIAL LITERACY AND INVESTMENT DECISION AMONG INDIVIDUAL INVESTORS IN NEPAL
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Abstract
In the context of Nepal various study have been conducted to study the investors decision making process. Karmacharya et al. (2022) concluded that the Nepalese investors decision are influenced by the advice and the suggestion of other. Similarly, Shrestha (2020) also concluded similar to Karmacharya et. al (2022) and reported that the Nepalese investor decision are influenced by the family and friends and explored that the Nepalese investor individual investment decision are guided and influenced by the company related and the
market related variables along with the risk and return related variables. Further Vaidya (2021) concluded that the Nepalese investors decision are heavily influenced by the fundamentals of the company and individual involves in the technical and the market trend for the short-term trading.
Description
There is various reason for the participation in the stock market by the individual investors. Financial market provides opportunity to make unprecedented profit, financial assets are easily liquid able and financial market provide the diversity option for the individual investors from which the investor can choose the assets as per their investment objectives (Akhtar & Das, 2019). According to financial theory, individual investors tend to be rational and risk-averse. (Ainia & Lutfi, 2019). But the behaviour finance opposes the financial theory by advocating that the individual does not always act rationally, individual financial decision is guided by the cognitive and emotional behaviour that leads to deviation from the rational decision. (Xiao & Porto, 2017).