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Understanding the Risk Tolerance Level and Trading Behaviour of Individual Investors with Special Reference to Demographic Profile of Investors


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1 Avinashilingam School of Management Technology, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore - 641043, India
     

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The present study aims at finding the association between demographic factors and risk tolerance levels of the investors. The study has also made an attempt to find the relationship between risk tolerance level and trading behaviour of the investors. In this study, questionnaire is used to collect the data and the respondents were chosen using snowball sampling technique. To analyse the collected data, descriptive statistics (mean, frequency and percentage), Chi-Square, and ANOVA are applied. From the result of the study, it is evident that there exist a significant association between demographic factors and risk tolerance level of investors. It was identified that there is positive and significant relationship between risk tolerances and trading behaviour and further found that there is significant difference in the trading behaviour of the respondents based on their demographic factors.

Keywords

Behavioural Finance, Individual Investors, Risk Tolerance Level, Trading Behaviour, Demographic Profile.
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  • Understanding the Risk Tolerance Level and Trading Behaviour of Individual Investors with Special Reference to Demographic Profile of Investors

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Authors

K. Ramya
Avinashilingam School of Management Technology, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore - 641043, India
D. Bhuvaneshwari
Avinashilingam School of Management Technology, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore - 641043, India

Abstract


The present study aims at finding the association between demographic factors and risk tolerance levels of the investors. The study has also made an attempt to find the relationship between risk tolerance level and trading behaviour of the investors. In this study, questionnaire is used to collect the data and the respondents were chosen using snowball sampling technique. To analyse the collected data, descriptive statistics (mean, frequency and percentage), Chi-Square, and ANOVA are applied. From the result of the study, it is evident that there exist a significant association between demographic factors and risk tolerance level of investors. It was identified that there is positive and significant relationship between risk tolerances and trading behaviour and further found that there is significant difference in the trading behaviour of the respondents based on their demographic factors.

Keywords


Behavioural Finance, Individual Investors, Risk Tolerance Level, Trading Behaviour, Demographic Profile.

References