Issue

Factors Influencing Investment Decision in the Stock Market

Bimala Luitel*

MBS-F Scholar, Department of Business Studies

Lumbini Banijya Campus, Butwal, Nepal

*Corresponding author

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Abstract
Investment can be defined as an existing commitment of cash in expectation of a favorable rate of return in the years to come. Investors are people who invest money in the hopes of making a profit. Understanding individuals' investment behaviour is critical. This study was conducted in Nepal's Rupandehi district's Butwal Sub-Metropolitan. A quantitative research design was used for this study. Given the size and diversity of the investor group, the study used a convenience sampling technique with a structured questionnaire. Analysis was done through ANOVA tests along with correlation and regression tests. The investment decision was found significant to information, economic, and psychological factors. It is found that economic factors and psychological factors have the most potent positive effect on investment decisions, with standardized coefficients of 0.908 and 0.348, respectively. In contrast, information factors have a weaker relationship with a coefficient of 0.298. Overall, the study concludes that economic and psychological factors are crucial in predicting investment decisions, highlighting the need for investors to be aware of both market conditions and their emotional states when making investment choices. Investors should pay close attention to both economic indicators and their own psychological biases when making investment decisions. Key words: Investment, Behaviour, Decision, Information, Economic, Psychological.