Promoting Gender Equality and Economic Empowerment

The financial reforms of the 1980s and 1990s which took place on the most economy around the globe is supposed to increase the financial depth and usage of formal financial services such as saving, credit, payment, insurance and other financial related services. Decades after those reforms, the results are still not satisfactory, the access and use of financial services of the deprived sector is significantly low. So, the great challenge in front of the government and other concerned regulatory authorities is to address those constraints that exclude people from full participation in the financial services. Furthermore, as evidence from G20 Pittsburgh summit in 2009 and Alliance for Financial Inclusion’s Maya declaration in 2011, lack of access to formal financial services to a larger percentage of the working-age adult is a global concern. First, let’s try to understand financial inclusion in a generous way.

Angkor wat and Phnom Penh Cambodia, Video Blog

Last year in late February and early March  I had an opportunity to visit Cambodia. The main objective of the visit was to attend a Seminar, however, I tried to managed some time to Travel to Siem Reap and had a quick visit of Angkor wat temple. I've tried for a short video blog for the very first time and I am posting my maiden video blog in this platform. I hope you all will enjoy this and have constructive feedback as always. The narration in the video is however in Nepali, I am sorry to all who doesn't understand Nepali language.

Thank You and Enjoy.

एक्सचेन्ज ट्रेडेड फण्ड (इटिएफ) एक चिनारी

क) अवधारणा

विकसित  धितोपत्र  बजारमा  एक्सचेन्ज  ट्रेडेड  फण्ड  (इटिएफ)  लाई  दोस्रो  बजारमा  कारोबार  हुने  गरी  नविन  लगानीको  उपकरणको  रुपमा  विकास  गरेको  पाइन्छ  ।  यसले  लगानी  योग्य  धितोपत्रहरुको  संग्रह  पोर्टफोलियो  (वा  बास्केट)  मा  भएको  सम्पूर्ण  धितोपत्रहरुको  सामूहिक  प्रतिनिधित्व गर्ने गर्दछ । इटिएफको केही बिशेषताहरु सामूहिक लगानी कोषसंग मिल्दोजुल्दो देखिन्छ तथापि सामूहिक लगानी कोष भन्दा इटिएफलाई अझ परिस्कृत अवधारणाको रुपमा लिने गरिन्छ । यो बन्दमुखी लगानी कोष झैं स्टक एक्सचेन्जमा सूचीकृत गरिएको हुन्छ भने खुल्लामुखी लगानी कोष झैं असिमित संख्यामा इकाइहरु जारी गर्न मिल्ने प्रकृतिको हुने गर्दछ ।

सामान्यतया इटिएफ कुनै सूचकांक(इन्डेक्स) मा आधारित रहेर बिभिन्न लगानी योग्य धितोपत्रहरुको समिश्रणबाट तयार पारिने लगानीको उपकरण हो । इटिएफ आफैले कुनै एक कम्पनीको धितोपत्र मात्रको प्रतिनिधित्व गर्दैन, यसले आफ्नो पोर्टफोलियोमा समाविष्ट सम्पूर्ण धितोपत्रको औसत मुल्य जनाउँदछ । जुन सामूहिक लगानी कोषमा भनिने खुद सम्पत्ति मूल्य (NAV) जस्तै हो । इन्डेक्समा आधारित रहेर तयार गरिएको फण्ड हुनाले यसलाई इण्डेक्स फण्ड पनि भन्ने गरिन्छ । यस्तो फण्ड प्यासिभ फण्ड (निष्कृय फण्ड) प्रकृतिको हुने गर्दछ जसको कारण यसको व्यवस्थापन खर्च उल्लेखनीय रुपमा कम हुन जान्छ । इटिएफलाई धितोपत्रको दोस्रो बजारमा सुचीकृत गरी निरन्तर कारोबारका लागि उपलब्ध गराइन्छ ।

An Analysis on Factors influencing on Stock Investment Decision: A Behavioural Finance Perspective

1. Background

Behavioural finance is regarded as an emerging discipline in finance, which is also rapidly expanding. The behavioural finance emerged in the 1980s as a new concept in finance which combines behavioural and psychological aspects of financial decision-making. It challenges the traditional finance to understand why investors behave in a particular manner while investing in financial assets. The standard finance or traditional finance is based on various theories and principle arbitrage principles of Miller & Modigliani; the portfolio principles of Markowitz; the capital asset pricing theory of Sharpe, Lintner & Black; and the option-pricing theory of Black, Scholes & Merton, these theories and principle assumes that market participant behaves rationally so the market is efficient and systematic. The investors are theoretically considered to be rational regarding the investment decision by traditional finance; in other words the mainstream finance believe that the investor assumes that the investment decision is made with rational expectation, furthermore, whenever a new information arrives the investor updates their belief and that is reflected through the investment decision which is to maximize their expected return at a given level of risk.

On the other hand, the behavioural finance incorporates behavioural biases and intellectual psychological component accompanied by economics and finance so that the viable supportive argument can be drawn for the irrational behaviour of people during the financial decision (Javed, Bagh, & Razzaq, 2017). DeBont's and Thaler's (1985) paper on stock market overreaction provides initial ground for behavioural finance. The behavioural finance deals with the human decision process which is subjective to the cognitive illusion which has been discussed by various scholars (e.g. - Illiashenko, 2017; Ritter, 2003).  According to Barberis and Thaler (2003), even though the investors are able to process all the available information accurately, not all the investor are rational, their investment related decision has behavioural preconceptions. Thaler (1994) coined the term 'quasi-rational' which indicate for much less than the full rational situation. In the word of Ritter, (2003) the behavioural finance believes in the asymmetric distribution of financial information. The investor’s decision to invest in a particular stock is an investment decision which is subject to several cognitive illusions, one among these illusions is caused by a heuristic decision process.