A STUDY OF INVESTMENT PATTERN ON THE BASIS OF DEMOGRAPHIC TRAITS

Abstract

Investor’s behavior is influenced by many factors during investment decision making. Demographic profile of investors is also one of the decision influencing factor among others.The aim of this paper is to examine the effect of demographic factors on investor’s level of risk tolerance regarding the choice of investment. 670 investors Pune City, Maharashtra State, India were selected as sample. ANOVA, Mann Whiteny ‘U’ test, Kruskal- Wallis test were used to explore the effect of demographic factors on investor’s level of risk tolerance regarding the choice of investment. Result of the paper showed that demographic factors of investors such as Age, Educational qualification, Income level, effect the investor’s level of risk tolerance. These results are important for managers to advise their clients about better area of investment and risk level according to their demographic profile.