Demographic Factors Impacting the Financial Risk Tolerance of Retail Investors of Urban West Bengal

2019 ◽  
Vol 13 (9) ◽  
pp. 22
Author(s):  
Amrita Bhattacharya ◽  
Avijan Dutta
Keyword(s):  
Financial Risk ◽  
West Bengal ◽  
Demographic Factors ◽  
Risk Tolerance ◽  
Retail Investors ◽  
Financial Risk Tolerance

scholarly journals AN EMPIRICAL ANALYSIS OF FINANCIAL RISK TOLERANCE AND DEMOGRAPHIC FACTORS OF BUSINESS GRADUATES IN PAKISTAN

2020 ◽  
Vol 10 (4) ◽  
pp. 220-234
Author(s):  
Naveed Hussain Shah ◽  
Waqar Khalid ◽  
Saifullah Khan ◽  
Muhammad Arif ◽  
Muhammad Asad Khan
Keyword(s):  
Empirical Analysis ◽  
Financial Risk ◽  
Demographic Factors ◽  
Risk Tolerance ◽  
Business Graduates ◽  
Financial Risk Tolerance

Moderating Effect of Demographic Variables on the Relationship Between Personality Traits and Financial Risk Tolerance

2018 ◽  
pp. 122-135
Author(s):  
Sasmita Mishra ◽  
Manit Mishra
Keyword(s):  
Regression Analysis ◽  
Personality Traits ◽  
Financial Risk ◽  
Demographic Variables ◽  
Risk Tolerance ◽  
Stepwise Multiple Regression ◽  
Hierarchical Regression ◽  
Retail Investors ◽  
Financial Risk Tolerance ◽  
The Relationship

This paper explores the relationship between financial risk tolerance and its determinant – the personality traits of retail investors. This paper also explores the moderating effect of major demographic variables like gender, age and income on the relationship between financial risk tolerance personality traits of retail investors. Stepwise multiple regression analysis and Hierarchical regression analysis was used to identify patterns in the data obtained from 261 respondents. The Stepwise multiple regression analysis established a negative association of Conscientiousness with financial risk tolerance of retail investors. The hierarchical regression analysis suggested a major impact of conscientiousness on financial risk tolerance among young Indian investors.

scholarly journals FINANCIAL RISK TOLERANCE ANALYSIS OF INDONESIAN RETAIL INVESTORS

2020 ◽  
Vol 8 (4) ◽  
pp. 852-875
Author(s):  
Gatot Nazir Ahmad ◽  
Ari Warokka ◽  
Irna Puji Lestari
Keyword(s):  
Financial Risk ◽  
Online Survey ◽  
Tolerance Analysis ◽  
Sociodemographic Factors ◽  
Demographic Variables ◽  
Risk Tolerance ◽  
Retail Investors ◽  
Retail Investor ◽  
Different Characteristics ◽  
Financial Risk Tolerance

Purpose: This study aims to analyze how risk tolerance of Indonesian retail investors is based on sociodemographic characteristics and also related to the multidimensional risk Due to the different characteristics of investors turn out to become different levels of risk tolerance for each individual investor, hence considering investor's sociodemographic factors is very important in assessing risk tolerance. Methodology: This study used quantitative analysis. The random sampling was obtained from the sample cohorts, which consist of the Indonesian retail investor club. Data was collected through an online survey and gathered 407 respondents. Then, the data was analyzed by using PLS with Smart-PLS 3.0 software. Result: Our findings showed that the most of socio-demographic variables such as age, gender, marital status, education, and income affected the financial risk tolerance, whereas ethics do not affect financial risk tolerance. And risk capacity partially mediated socio-demographics on financial risk tolerance. Application: The investor and financial advisers would use this analysis in assessing risk tolerance and determining the best type of investment and best suits the risk preference of investors. Novelty: To the best our knowledge, this study is pretty scarce. Not like the previous studies, this research also use an advanced method which explores variables interdependency. This research is the first one in Indonesia, which compiles socio-demographic variables. And also it is an enriched empirical and literature manner.

scholarly journals Relationship between Biopsychosocial Factors and Financial Risk Tolerance: An Empirical Study

2016 ◽  
Vol 41 (2) ◽  
pp. 117-131 ◽  
Author(s):  
M Kannadhasan ◽  
S Aramvalarthan ◽  
S K Mitra ◽  
Vinay Goyal
Keyword(s):  
Financial Services ◽  
Sensation Seeking ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Wealth Accumulation ◽  
Cross Sectional Survey ◽  
Executive Summary ◽  
Cross Sectional ◽  
Retail Investors ◽  
Financial Risk Tolerance

Executive SummaryFinancial risk tolerance (FRT) refers to the retail investors’ willingness to accept the negative changes in the value of investment or an outcome that is adversely different from the expected one. Understanding and assessing FRT plays a crucial role in individual choices about wealth accumulation, portfolio allocation, and all other investment and finance-related decisions, and in achieving financial goals. An advisor has to accurately assess FRT for achieving his/her goal or investor’s goal. Failure to do so leads to the choice of an investment option/portfolio which is inconsistent with one’s FRT, resulting in investor disappointment, that is, unbearable loss to the client. Such a situation may adversely affect the client–advisor relationship.Measuring FRT is challenging as it is a multidimensional attitude. Besides, it is an elusive concept that appears to be influenced by a number of predisposing factors such as demographic, environmental, and psychosocial factors. This study aims to identify the factors that are related to risk tolerance from outside the financial services domain such as psychology, economics, and bio-sociology. It deals most specifically with the relationship between biopsychosocial factors and FRT. Those who are interested in assessing and predicting FRT can move closer to a theoretical account that blends psychological and economic insights and supplements the understanding of risk-taking attitudes and behaviour of retail investors. Such an understanding will help financial advisors, policy makers, and researchers in identifying the determinants of an individual’s FRT to suggest the suitable investment alternatives to their clients.A single cross-sectional survey was conducted among 951 retail investors with various levels of investment experience through a structured questionnaire covering a variety of demographic factors. An analysis of the data collected through the questionnaire indicates that all the three factors—self-esteem, personality type, and sensation seeking—are positively related to FRT. This study adds to the extant literature on psychological determinants of FRT.

Impact of Risk Tolerance and Demographic Factors on Financial Investment Decision

GIS Business ◽  
2018 ◽  
Vol 13 (5) ◽  
pp. 31-40
Author(s):  
Mitali Baruah ◽  
Abhishek Kirit kumar Parikh
Keyword(s):  
Financial Risk ◽  
Investment Decision ◽  
Demographic Factors ◽  
Demographic Variables ◽  
Risk Tolerance ◽  
Extensive Literature ◽  
Financial Investment ◽  
Financial Decisions ◽  
The Impact ◽  
Financial Risk Tolerance

Risk tolerance is popularly used in the personal financial planning industry to understand an investor’s attitude towards risk. In the twenty-first century, it is very important for the various investment firms, fund managers, financial planners to understand financial investment decisions of an investor for developing a strategy for the sale of their investment products in market. However, financial decisions of an individual not only depend on financial risk-tolerance level, but also upon different demographic factors. Thus, this study is undertaken to develop a model that helps in understanding impact of risk tolerance and demographic factors jointly on investment decision, especially, a decision related to level of investment. Also, investor may be having higher risk tolerance for the calculative investment but may be having lover risk tolerance in speculative investment. So, based on extensive literature support, this research has tried to propose a model for understanding the impact of investment risk tolerance, capital risk tolerance, speculative risk tolerance, and six important demographic variables jointly on investment decision. Thus, this study would be helpful to investment firms in understanding impact of risk tolerances and demographic variables jointly on level of investment of investors, which can be used for designing a strategy or investment product to offer to the investors with different levels of financial risk tolerance and different demographic profiles.

scholarly journals Determinants of Financial and Non-Financial Risk Tolerance among Students at Selected South African Universities

2018 ◽  
Vol 10 (1) ◽  
pp. 293-302
Author(s):  
Pfano Michael Ramudzuli ◽  
Paul-Francois Muzindutsi
Keyword(s):  
South African ◽  
Significant Influence ◽  
Financial Risk ◽  
Demographic Factors ◽  
Binary Logistic Regression ◽  
Risk Tolerance ◽  
Financial Risks ◽  
Allocation Process ◽  
South African Universities ◽  
Financial Risk Tolerance

Abstract To enhance the portfolio allocation process, individuals need to understand their financial ability and psychological willingness to tolerate risks. To do this, their risk tolerance level must be quantified. This study used a survey questionnaire to collect data from 470 students at selected South African universities, and a binary logistic regression to test the effect of demographic factors on financial risk tolerance versus non-financial risk tolerance. Our findings suggest that the level of risk tolerance cannot be generalized across different risk domains. We also found that demographic factors affect the two domains of risk tolerance differently. Specifically, age did not have a significant influence on financial risk tolerance, while it significantly increased non-financial risk tolerance. Similarly, gender did not have any significant influence on non-financial risk tolerance, while it positively affect-ed financial risk tolerance. Furthermore, students in the fields of the humanities, engineering and IT showed a strong appetite for non-financial risks, but students in the commerce faculty preferred financial risks.

Sign in / Sign up

Export Citation Format

Share Document