Relationship Between Demographic Factors and Investment Behavior of Investors in the Stock Market of Nepal

Abstract

This article shows investors’ behavior of investment on stock market of Nepal Stock Exchange (NEPSE). The study was done using structured questionnaire administered to 120 individual investors. The result shows that investors in Nepal are highly interested in investing in stocks of commercial banks and family/friends are their major source of awareness about investment in stock market. Capital appreciation is key factor in decision making for investment in stock market. Market value and capital gains are selected by most respondents as key factors in deciding to buy a particular share and decision in selecting a company. Moreover, no significant relationship was found between demographic variables of investors with investment decision. Belief that luck plays a role in profit/loss from investment decision was found to follow a normal distribution concentrating mostly on neutral side with no association among demographic variables.