EXCUTIVE SUMMARY: Over the past decade, initial public offerings have become the investor’s best choice for long term investing. An IPO pools the saving of a number of investors who share a common financial goal. We can see that whenever the public limited companies issue new shares, the stock market gets busy with crowds of share applicants. It is evident by the heavy oversubscription and very good initial market returns in the Nepal Stock Exchange Ltd.
 The study focuses on investment behavior which is a part of behavioral finance - an emerging discipline covering the fields of study of finance, psychology and sociology. The study helps to find out the factors affecting investment decision on IPO. The nature of this report is descriptive. The dependent variable was investment decision towards investing in IPO. The independent variables were the three behavioral biases i.e., overconfidence to invest, investment socialization (herding) and investment knowledge (availability). The demographic factors that affects were gender, age, education level, investment experience and formal training in finance.
Most of the investors invest in IPO with the motive of balanced income which leads to risk mitigation. Others have motive of transactional, precautionary and speculative. Similarly, investors invest with the expectation of return which is to get high return with low risk. Some are affected by overconfidence in oneself, awareness level and investment alternatives.
Therefore, the results can be implemented to make the investor aware of the IPO benefits, risk involved and to attract the investors. Regulatory body and IPO issuing companies should focus on awareness level, investment alternative and risk preference to investors as well as issuer to prosper in the market in coming days too.

ACKNOWLEDGEMENTS
The research entitled “Behavioural aspects influencing investors decision on investing in initial public offering” has been prepared under the graduate research projectas partial fulfillment of Masters of Business Administration (MBA) under program of faculty management, Pokhara University.
This study is not the outcome of individual effort; several helping hands and various sources of information have contributed adequately to come out with this meaningful report. I am sincerely grateful to all those people who gave assistance in making of this study. Preparation of report is not easy, as it seems when the outcome is in hand. This outcome in the hands of the reader has been prepared with the support of some helpful hands. It would be great dishonesty if they are unnamed.
At first, I am indebted to my honored supervisor Mr. Dipendra Karki for his patience and continuous guidance with constructive comments and kind encouragement all the way throughout this research work. I would like to convey my deep gratitude for his significant support and stimulation to prepare this study.