Demographic and Financial Determinants of Risk Tolerance in Indian Retail Investors
Author: Ms. Malika Rane
Abstract:
There has been a significant growth in the investment scene in India, particularly among individual retail investors. This study examines the elements affecting investment choices and willingness to take risks among retail investors in India, with a specific focus on demographics, financial reliance, professional guidance, and sources of income. A study conducted in Mumbai with a sample size of 70 participants aged 20-69 used chi-square tests to explore the links between risk tolerance and factors like age, gender, income stability, relationship status, and salary. Findings showed strong connections between risk tolerance and gender and income stability, with age, relationship status, and salary having little influence. Men showed greater risk tolerance than women, while those with consistent income displayed higher levels of risk acceptance. These results emphasize the significance of taking into account demographic and financial factors when planning investments. The constraints of the study, such as sample size and distribution, indicate a necessity for additional research with broader, more varied samples. Financial advisors can apply their skills by customizing investment plans according to gender and income reliability, as well as using psychological evaluations to gain insight into clients' risk tolerance.
Keywords: Waterlogging, Drainage System, Monsoon, Urban Flooding