1. Investment Behavior for Nepalese Investors Pragya Adhikari
Prepared by:
Dipesh Raj Pandey
Salim Lal Awale
Dibya Raj Sakota
Kushal Chandra Shrestha

2. Literature Review Traditional finance and investment decisions
Behavior finance and investing decisions
Biases and attributes
-Heuristics
-Herding
-Overconfidence

3. Methodology Survey methodology with 60 Questionnaires
Sample size of 60 respondents and 4 security brokers

4. FINDINGS
The major motives of Nepalese investors for investing in shares are capital gains and bonus shares.
The three major financial tools they use for investment decisions are financial position of the company, advice of family and friends, and gut feeling respectively. They need social factors such assense of conformity and others’ approval while investing in stocks which leads to Herding Behavior.

5. FINDINGS
Most Nepalese investors have overconfidence in their ability to pick good stocks, analyze financial statements and correctly value shares. Most of them are optimistic about the shares they held. These findings are in line with the theories and ideas of Behavioral Finance.

6. FINDINGS
Even though respondents perceive that they have the ability to pick good stocks and make better investment decisions, their brokers do not think so which further indicates the presence of overconfidence and biases in availability and use of information in investment decision making process.

7. FINDINGS
So, finally, the findings of this article suggests that most of the Nepalese investors do not make rational decisions and besides risk and return, their investment decisions are influenced by behavioral factors mentioned above.

8. Who will be benefited from the findings?
Academicians
Current Investors
Potential Investors

9. Who will be benefited from the findings?
From the findings, the investors can know the important behavioral factors that influence their investment decisions.

10. Do we agree with the findings and conclusion?
Investors are not solely guided by risks and returns of their investment but they also invest to satisfy their social needs such as conformity, belongingness and approval which is in line with current behavioral finance literature.
Investors in our market are not fully capable of analyzing the financial information.

11. Do we agree with the findings and conclusion?
Investors are overconfident in their ability to pick right stocks,
Investors are over optimistic about the shares they hold,
Investors exhibit herding behavior as a result of need for conformity.

12. What can be added to make the study better?
Initially, to find "Respondents' motives for Investment in Shares", the author has taken four financial statements (‘Invest for capital gain”, “Invest for bonus shares”, “Invest for right shares” and “Invest for dividend income”) but only one non-financial or behavioral variable, i.e. “Invest to engage in investment related conversations with others”.

13. What can be added to make the study better?
This article has not considered some of the major factors related to our country that can affect the decision-making of investors such as:
Politics
Economic Situation

14. What can be added to make the study better?
More respondents
Observation Method
More detail can be given about how data was collected from the respondents
Logical Relationship/Theoretical Framework