Effectiveness of Promotional Tools on Investment Behavior in Open-Ended Mutual Funds in Nepalese Capital Market

Abstract

With the rise of the capital market of Nepal, there is an increasing need to identify factors affecting investment in open-ended mutual funds. This research identifies the impact of promotion, personal selling, internet marketing, and investor education on the investment behavior of individuals using the quantitative data of 119 investors. The descriptive analysis indicated that the general view of the participants regarding the use of promotion tools was in agreement with the results. The correlation analysis indicated a positive relationship between all the promotion tools and investment behavior. However, regression analysis indicated that different factors have different impacts: advertising and internet marketing had a significant positive influence on the investment behavior, whereas investor education did not have statistical significance. Personal selling had a negative influence, although statistically significant.