Impact of demographic variables and risk tolerance on investment decisions

This study shows relationship between pattern of investment and decision based on finance of investors and tolerance in terms of risk by the respondents. This paper uses the tolerance of financial risk on the basis of scale proposed by Grable and Lytton for the measurement of different aspects of risk in terms of finance. With the help of Kendall’s W test, which sources of investments are preferred by individual investor? With the help of Chi-square test different demographic variables are identified and also their pattern of investing. The paper shows the investment patterns and decision making of the investors are affected by gender of the respondent.