Title: Demographics and financial risk tolerance among investors of Punjab: an empirical analysis

Authors: Anu Sahi

Addresses: School of Management, Apeejay Institute of Management & Engineering Technical Campus, Jalandhar, India

Abstract: This study empirically examined the relationship between demographics and financial risk tolerance of investors and to check, whether investors can be categorised into risk tolerance categories, named as risk takers and risk averse using demographics. A single cross-sectional primary survey conducted on 151 investors with varied level of investment experience and demographic features. The dependent variable financial risk tolerance has been measured using seven-point Likert scale and the independent variables were measured on nominal and ordinal scale. The relationship between the variables were analysed using univariate and multivariate analysis techniques. Results revealed that age and family income have significant relation with financial risk tolerance of individual investors. Application of logistic regression unravel that demographic features can be used for categorising investors as risk takers or risk averse.

Keywords: risk; tolerance; financial; index; financial risk tolerance; FRT; age; demographics; family income; Punjab; India.

DOI: 10.1504/IJEPEE.2022.121343

International Journal of Economic Policy in Emerging Economies, 2022 Vol.15 No.2/3/4, pp.153 - 163

Received: 07 Dec 2019
Accepted: 09 Jul 2020
Published online: 07 Mar 2022 *

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