The Effect of Demographic Factors on the Behavior of Investors: Evidence from the Ahmedabad City, Gujarat

Abstract

Investors behavior is directed towards numerous factors throughout investment decision process. Demographic profile of an investors is solitary of the most persuading factors among all that directs the behavior of the investors in the market .The main aim of this paper is to study the effect of demographic factors on investors risk tolerance behavior especially for the choice of investment. 111 investors sample from Ahmedabad city of Gujarat were selected, Frequency distribution, Descriptive analysis, Factor analysis, Test of Normality, Non Parametric test (Kruskal Wallis Test) were conducted to decide the impact of demographic factors on investors level of risk tolerance regarding the choice of investment. The outcome of this paper showed very important measurement to show that demographic factors of investors such as academic education, income level of investors, knowledge of investors, and investors experience effect the investors level of risk tolerance, while investors gender, marital status, occupation, and family size showed no effect on investors level of risk tolerance .These results are important for market professional to suggest their investors for suggesting healthier for the investors by taking into the count of level of risk involved in the particular set of portfolio selection.