Study on Financial Risk Tolerance of individual Investors with special reference to Chennai city

Abstract

The investors should be aware of their risk profile before taking their investment decisions and adopt investment strategy that is best suited for their investment goals. This study helps to understand the risk profile of the individual investors and how various individual characteristics influence their risk taking behaviour. This  study  is  mainly  based  on  the  primary  data. Descriptive research is adopted for the study. The data is collected through The Grable And Lytton Risk-Tolerance Scale questionnaire, which was distributed to the respondents through Google forms and their responses were recorded and processed.. Convenience sampling is used for the study. Data obtained from study is analyzed using SPSS. The sample size of study is 104. The statistical tools used for analysis are Chi-square test, Independent sample T-test and ANOVA. It is found that male are more risk tolerant than female. Also it was found that investors whose monthly income is below 25k take more financial risk compared to others and investors who have done HSC or below take more speculative risk compared to others.