DETERMINANTS OF INVESTMENT DECISION IN NEPALESE SHARE MARKET

Abstract

The Nepalese share market, characterized by its distinctive landscape, is influenced by a myriad of factors ranging from economic metrics to psychological inclinations. However, a discernible gap exists in understanding the nuanced dynamics guiding individual investors' behaviors within Nepal. This thesis endeavors to address this void by examining the multifaceted influences shaping investment decisions in Nepal, focusing on informational, economic, psychological, and political dimensions. Through meticulous research, this study unravels the complex tapestry of the Nepalese share market, identifying the interplay of various factors in shaping investment choices. It investigates the role of access to credible data, expert recommendations, and market research in guiding investor decisions, alongside examining the impact of macroeconomic indicators such as stability, inflation rates, and interest rate fluctuations. Furthermore, the thesis delves into the realm of psychological factors, acknowledging the sway of emotions, perceptions, and market sentiments on investor decisions. It also recognizes the significance of political stability or instability in shaping investor confidence and market sentiment. The research objectives are meticulously formulated to evaluate the principal determinants influencing the decisions of individual investors in the Nepalese share market, employing a strategic sampling design targeting diverse geographical locales within Nepal. Statistical tools such as mean, standard deviation, correlation, and regression analysis are employed during data analysis to extract meaningful insights. The findings unearth several key revelations pertaining to investor demographics, sectoral preferences, and the influence wielded by various factors on investment decisions within the Nepalese share market. By gaining a deeper understanding of these dynamics, stakeholders such as investors, policymakers, and market participants can make more informed decisions, fostering greater stability and prosperity within the Nepalese investment ecosystem. In conclusion, this thesis offers a comprehensive understanding of the factors driving investment decisions in the Nepalese share market, providing actionable recommendations to fortify the investment landscape and pave the way for a resilient and prosperous investment ecosystem in Nepal.