Scholarlink

<p>This study examines the economic impact of mutual fund investment in Nepal by integrating micro-level investor behavior with macro-level outcomes. A mixed-methods strategy has been employed, integrating a primary survey of 394 mutual fund investors in the capital cities of Kathmandu, Pokhara, and Biratnagar with secondary time-series data from 2013 to 2023. Structural Equation Modeling (SEM) with Confirmatory Factor Analysis (CFA) is used to measure latent constructs. The study employs Vector Error Correction Modeling (VECM) and Granger Causality verification to investigate the long-term and short-term correlations between mutual fund and GDP growth. The result of the study is that mutual fund investors are predominantly young (51.02%), educated (47.46% bachelor’s), and privately employed (55.84%). The SEM with Confirmatory Factor Analysis (CFA) verified that information availability, risk tolerance, and financial literacy are important factors in investment choices (factor loadings: 0.70–0.80, <i>p</i> &lt; 0.001). The VECM found a long-run cointegrating relationship between mutual funds and GDP, but no strong short-run Granger causality. Mutual funds have positive impacts on stock market performance and moderation of inflation, yet they do not have considerable impacts on employment in the long run. This paper is one of the first research studies to interconnect behavioral finance and financial development theory in the Nepalese context. Methodologically, the research moves forward by using SEM-CFA for microanalysis and linking it to VECM for macro outcomes. This provides a replicable path for emerging markets.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Mutual fund investment in Nepal and its dual analysis of economic impact and investor behavior

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2025年12月17日

查看全文
  • Yadav Mani Upadhyaya,
  • Shiva Raj Ghimire,
  • Khom Raj Kharel

摘要

This study examines the economic impact of mutual fund investment in Nepal by integrating micro-level investor behavior with macro-level outcomes. A mixed-methods strategy has been employed, integrating a primary survey of 394 mutual fund investors in the capital cities of Kathmandu, Pokhara, and Biratnagar with secondary time-series data from 2013 to 2023. Structural Equation Modeling (SEM) with Confirmatory Factor Analysis (CFA) is used to measure latent constructs. The study employs Vector Error Correction Modeling (VECM) and Granger Causality verification to investigate the long-term and short-term correlations between mutual fund and GDP growth. The result of the study is that mutual fund investors are predominantly young (51.02%), educated (47.46% bachelor’s), and privately employed (55.84%). The SEM with Confirmatory Factor Analysis (CFA) verified that information availability, risk tolerance, and financial literacy are important factors in investment choices (factor loadings: 0.70–0.80, p < 0.001). The VECM found a long-run cointegrating relationship between mutual funds and GDP, but no strong short-run Granger causality. Mutual funds have positive impacts on stock market performance and moderation of inflation, yet they do not have considerable impacts on employment in the long run. This paper is one of the first research studies to interconnect behavioral finance and financial development theory in the Nepalese context. Methodologically, the research moves forward by using SEM-CFA for microanalysis and linking it to VECM for macro outcomes. This provides a replicable path for emerging markets.