LBEF RESEARCH JOURNAL OF SCIENCE, TECHNOLOGY AND MANAGEMENT

Author(s):Arun Gurung, Dr Prity Birla

Abstract:This study investigates the investment diversification strategies employed by business employees in Kathmandu Valley. It specifically examines the impact of financial literacy, risk perception, investment objectives, and herd behavior. The research investigates the influence of behavioral finance theories and current portfolio theory on the diversification of investments among corporate personnel. It is important for fixed income individuals to make crucial decision regarding allocation of their income in different assets. Using primary data from survey, the study uses mixed method approach. Regression analysis is the main tool used to examine the data. The study concludes whether how behavioral aspects of an employee affects the decision-making regarding investment diversification. From the findings, many strategies and plan are formulated for employees to make investment decisions. This study advances behavioral finance and helps business employees and financial advisors optimize portfolio diversification.

Keywords:Investment, Diversification, Financial Literacy, Risk Perception, Herd Mentality, Investment Goal, Corporate Employees