Effect of Investor's Psychology on Investment Decision

The study intends to investigate the effect of investor’s psychology on investment decision. Data for the study was collected through convenience sampling technique from 392 investors of Nawalparasi-West district on five points likert scale through a pre tested questionnaire. Descriptive and casual comparative research design was used to conduct the research study using correlation. Independent sample t-tests revealed marital status based differences across various aspects of investor psychology, with married generally showing higher ratings. One-Way ANOVA identifies significant differences in investor’s psychology across different age groups, level of education, and occupation. It was found strong positive relationship between self image/firm image co-incidences, accounting information, advocate recommendations, neutral information, and personal financial needs and investment decision. The study contributes to the existing literature by providing empirical evidence on the determinants of investor’s psychology on investment decision. The insights derived from this research can inform marketers’ strategic decision-making processes, guiding them in developing better investment decisions for attaining the beneficial returns. Investment refers to the allocation of resources such as money, time, or effort into assets or ventures with the expectation of generating profitable returns or future benefits. Investing requires choosing where to allocate funds among different types of investment opportunities (Nalurita et al., 2020). The primary objective of an investor is to generate profit, as managing personal finances is a universal necessity. Different investors adopt varying strategies; some prioritize saving substantially, others prefer thorough research before investing, and there are those who rely on their intuition to guide their investment decisions (Shahid et al., 2018). Investors of various types aim to maximize returns while minimizing investment risks. Ty