Determinants of Individual Investors’ Intention to Invest in Systematic Investment Plans: Evidence from Kathmandu Valley

Abstract

Systematic Investment Plan is an emerging concept in Nepal that provides a discipline approach to invest in mutual fund. Due to investor hesitancy, insufficient knowledge, and a lack of financial literacy, SIP adoption in Nepal is still low despite its benefits. The purpose of the study is analyzing individual investors’ intention towards SIP in Kathmandu valley. This study implements explanatory research design and uses purposive sampling method for data collection. Kathmandu valley population were picked as a population, and 404 individuals were taken as a sample with the help of KOBO toolbox from Kathmandu valley. In this study Theory of Planned Behavior is used. Structured questionnaire was used to collect data and PLS-SEM was used to analyze the data. Both descriptive and inferential statistics were used to evaluate the data. Results show that attitude, subjective norms and perceived behavioral control have significant relationship SIP intention. Majority of respondents facing challenges of lack of information, lower financial returns and lack of financial education which can be solved by easily availability of information, financial education and literacy programs and average return on investment. This study conclude that attitude, subjective norms, and perceived behavioral control significantly impact SIP investment intentions. Key challenges include financial literacy gaps and market fluctuations, limiting investor participation. Providing financial education and easy access to investment information can enhance SIP adoption. The findings are valuable for investors, financial institutions, and policymakers in Nepal, emphasizing the need for financial literacy programs, transparent investment processes, and supportive regulations.