Abstract
This research is about the Analyzing Risk Tolerance in Individual Investors. Hereby, individual and institutional investors consider the possible rate of return and riskiness of the investment while making real and individual investment decisions. This research intends to determine the factor influencing the overall financial risk tolerance by making an investment decision of individual investor through the research of the people of Chennai. This research identifies the factors are Investment Decisions, Investment Knowledge, Risk Perception on Financial Risk Tolerance of individual investors. The research is descriptive in nature and data has been collected from 153 respondents of Individual Investors. Convenient sampling technique was employed in collecting samples. Percentage Analysis, Anova Analysis, Correlation Analysis, T Test Analysis, have been utilised to interpret data. From Analysis that it was surprising to find that the gender, investment knowledge and occupation did not play an important role in the risk tolerance level of the investor. However, the Income of the respondent made a difference in the Risk tolerance. The people in the higher income group had higher Risk tolerance. The perception of risk was the other factor that correlated with the risk tolerance. Hence, that the perception of risk is very conservative in Chennai city where the sample was taken.
Introduction
An individual’s financial risk tolerance is playing a crucial role in making financial decisions and in achieving financial goals. Each investor has his or her own tolerance of and attitude toward risk, in order that an investment considered “high risk” by one investor could also be considered “low risk” by another investor. Assigning investors to their appropriate risk tolerance category and thereby suggesting the foremost suitable investment portfolios to them is an important task of investment managers and advisors.
In this research Financial Risk Tolerance of individual investor’s helps us to know better about what the investors facing the risk tolerance of individual & make to easy determine the investment decisions of portfolio management. There have been independent variables as demographic variables; marital status, annual income, experience in investment, gender, age, occupation. The dependent variables were chosen from the questionnaire to succeed into any conclusion they were risk tolerance level, risk perception, investment knowledge, investment decision. The commonly used technique is experimental questionnaire which consists of questions on hypothetical scenarios and/or investment choices. during this method, investors are asked to complete a questionnaire for gathering information about risk attitude and perception of investors through a series of questions.
Statement of the Problem
In this research is about while making real and individual investment decisions, both individual and institutional investors consider the possible rate of return and riskiness of the investment. During this context, the financial risk tolerance of individual investors emerges as a very important factor influencing the selection of financial investments and therefore the use of savings in financial markets.
This research will examine the factors influencing of financial risk tole. Because of recent global financial crises, investment decisions are considered as important task in our standard of living. So, this study is critical to enumerate the investment decisions and financial risk tolerance of individual investors by the using the demographic variables.
Aim and Scope
The aim of the research is to identify the factors influencing risk tolerance level of an individual and to analyze the influence of the demographic factors on financial risk tolerance. This research helps the investors to make better investment choices. Furthermore, it’ll help in determining whether the seasoned investor can only keep investment decision, or the financial literacy and accounting information may help less experienced investors in making good investment decision. The area of data has been restricted to Chennai city and not conducted for longer time horizon. The time limit is restricted to three months. This research has taken limited dependent variables like investment decisions, investment knowledge, risk tolerance level, risk perception.
Components of a Project Report
A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:
- Title page
- Table of contents
- Introduction
- Background of the project
- Project objectives
- Methodology
- Results
- Discussion and Analysis
- Conclusion
- Bibliography or references
- Appendices
Project Report Pages : 80
Can be used in : Finance Final Year Project
Delivery Time : Within 2 hours.
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