Professional Documents
Culture Documents
Introduction
theory
Study of risk perception and its impact on
investment behavior is one of the core
Review of related Literature
In this section, the literature review
including three parts. First, behavior
finance perspective of individual investor.
Second,
individual
investors
risk
perception, risk tolerance and portfolio
choice. Third, individual investors socioeconomic status differential and risk
tolerance. The results for gender,
education level and income level are
consistent with the earlier literature.
Previous literature indicating those factors
on risk-taking and risk tolerance are
gender, age, marital status, occupation,
income level, education level and
economic environments expectations,
which might influence an individual
investors level of risk taking, but the
factor of education level might not. Those
studies are classified by three catalogers.
appears
utility
expected
Page 2 of 13
Page 3 of 13
to
investment
in
Understanding of customer / or
investors about the equities
It also help us to know the port
folio management of equity
Page 4 of 13
Source of Data
The task of collecting data begins
after a research problem has been defined
and plan is chalked out for this study data is
collected from primary and secondary
sources.
Research Plan
Research Instrument:
Questionnaire
%
35.50
21.00
25.00
18.50
100.00
Page 5 of 13
Performance about their Financial Future and age from which the Respondents
are investing
Table - 2
Financial
No. of
No. of
Sl. No
%
Age of Investing
%
Future
Respondents
Respondents
1
Very optimistic
45
22.50
Age 80 and Over
35
17.50
2
Positive
68
34.00
Age 70 to 79
46
23.00
3
Unsure
58
29.00
Age 60 to 69
52
26.00
4
Pessimistic
29
14.50
Age 50 to 59
59
29.50
Total
200
100.00
Age under 40
8
4.00
Total
200
100.00
of the respondents have invested in the age
between 60 to 69 years, 23% of the respondents
From the above table, it shows that 34% of the
have invested in the age between 70 to 79 years,
respondents are positive about their financial
and 17.5% of the respondents have invested in
future, 29% of the respondents are unsure,
the age 80 and above. It is revealing that people
22.5% of the respondents are very optimistic
under 40 years only 4% have been investing.
about their financial future and 14.5% of the
respondents are Pessimistic. It is found that
29.5% of the respondents have invested in age
between 50 to 59 years, 26%
No. of
Respondents
59
29.50
40
20.00
33
45
16.50
22.50
Some Current
Income
High Current
Income
High Total Return
Substantial Return
23
11.50
Total
200
100
have no experience
2
3
4
5
Best
Statement
No. of
Respondents
54
27
15
82
49
41
24
200
Page 6 of
13
re
s
p
o
n
d
e
nt
s
p
er
c
ei
v
e
hi
g
h
to
ta
l
re
tu
r
n
a
s
th
e
b
e
st
st
at
e
m
e
nt
,
2
7
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
p
er
c
ei
v
e
s
o
m
e
c
u
rr
e
nt
in
c
o
m
e
a
n
d
ar
e
v
er
y
s
ar
e
p
er
c
ei
v
e
s
u
b
st
a
nt
ia
l
re
tu
r
n.
s
af
e,
2
4.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
Attitude about
Financial Risk
Table - 4
Sl. No
1
2
3
D
I Only inve
Ass
The Higher
Sl. No
1
2
r
o
An
m
th
e
a
b
o
v
e
ta
bl
e,
s
h
o
w
s
th
at
5
0.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
d
o
n
ot
h
a
v
e
a
n
y
p
o
rt
f
ol
io
a
ct
iv
it
ie
s
a
n
d
4
9.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
ar
e
h
a
vi
n
g
p
o
rt
f
ol
io
a
ct
iv
it
ie
s.
Risk Tolera
Sl. No
Risk Toleran
1
2
More Willingn
Less Willingn
Risk factors ha
influence
4
Total
3
4
F
r
o
m
th
e
a
b
o
v
e
ta
bl
e,
it
s
h
o
w
s
th
at
f
o
r
3
6
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
ri
s
k
fa
ct
o
r
h
a
s
n
o
in
fl
u
e
n
c
e
si
n
c
e
th
e
ti
m
e
o
f
fi
rs
t
in
v
e
st
m
e
nt
,
3
4.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
h
a
v
e
le
ss
w
il
li
n
g
n
e
ss
to
ta
k
e
o
n
ri
s
k,
2
9.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
h
a
v
e
n
o
id
e
a
a
b
o
ut
ri
s
k
.
It
is
in
fe
rr
e
d
th
at
4
0.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
P
a
g
e
7
o
f
1
3
w
o
ul
d
w
ai
t
f
o
r
m
ar
k
et
tu
r
n
ar
o
u
n
d,
2
8
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
w
o
ul
d
i
m
m
e
di
at
el
y
li
q
ui
d
at
e
a
n
d
m
o
v
e
to
a
m
o
re
st
a
bl
e
in
v
e
st
m
e
nt
,
2
2.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
w
il
l
m
o
v
e
at
7
5
0
0
0
f
o
r
st
a
bl
e
in
v
e
st
m
e
nt
a
n
d
9
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
w
il
l
m
o
v
e
at
9
0
0
0
0
f
o
r
st
a
bl
e
in
v
e
st
m
e
nt
G
r
o
w
t
h
E
x
p
e
c
t
e
d
O
f
I
n
v
e
s
t
m
e
n
t
i
n
5
Y
e
a
r
s
T
a
b
l
e
7
Time Horizo
withdraw
Sl. No
1
Currentl
Less than 3 Y
Between 6 to 1
After 15 Y
Total
F
r
o
m
th
e
a
b
o
v
e
ta
bl
e,
it
is
f
o
u
n
d
th
at
3
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
w
il
l
m
a
k
e
w
it
h
d
ra
w
al
s
b
et
w
e
e
n
6
to
1
5
y
e
ar
s,
3
2.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
c
u
rr
e
nt
ly
n
e
e
d
to
m
a
k
e
w
it
h
d
ra
w
al
s,
1
8
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
w
il
l
w
it
h
d
ra
w
in
le
ss
th
a
n
3
y
e
ar
s
a
n
d
1
4.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
w
il
l
w
it
h
d
ra
w
af
te
r
1
5
y
e
ar
s.
It
is
cl
e
ar
th
at
2
8.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
e
x
p
e
ct
th
ei
r
in
v
e
st
m
e
nt
to
g
r
o
w
fr
o
m
3
0
%
t
o
5
0
%
,
2
6
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
e
x
p
e
ct
th
ei
r
in
v
e
st
m
e
nt
to
g
r
o
w
fr
o
m
0
to
1
5
%
,
2
3
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
e
x
p
e
ct
a
g
r
o
w
th
a
b
o
v
e
5
0
%
a
n
d
2
2.
5
%
o
f
th
e
re
s
p
o
n
d
e
nt
s
e
x
p
e
ct
a
g
r
o
w
th
fr
o
m
1
5
%
t
o
3
0
%
.
Shar
ing
Info
rma
tion
abo
ut
Risk
with
Con
sulta
nt,
Lear
ns
from
Risk
and
Mea
sure
to
Control Risk
Table 8
F
r
o
m
t
h
e
a
b
o
v
e
ta
b
le
,
it
is
f
o
u
n
d
t
h
Sl. No
Feel Free
1
2
3
Yes
No
Total
at
6
3.
5
%
o
f
t
h
e
r
e
s
p
o
n
d
e
n
ts
f
e
el
fr
e
e
t
o
s
h
a
r
e
i
n
f
o
r
m
at
i
o
n
o
n
ri
s
k
w
it
h
c
o
n
s
u
lt
a
n
t
a
n
d
3
6.
5
%
t
h
e
r
e
s
p
o
n
d
e
n
ts
d
o
n
o
t
f
e
el
fr
e
e
t
o
s
h
a
r
e
i
n
f
o
r
m
at
i
o
n
w
it
h
t
h
e
c
o
n
s
u
lt
a
n
t.
It
is
f
o
u
n
d
t
h
at
6
4.
5
%
o
f
t
h
e
r
e
s
p
o
n
d
e
n
ts
d
o
n
o
t
)
:
N
o
S
i
g
n
i
f
i
c
a
n
t
r
e
l
a
t
i
o
n
s
h
i
p
b
e
t
w
e
e
n
I
n
c
o
m
e
a
n
d
A
g
e
o
f
i
n
v
e
s
t
i
n
g
.
A
l
t
e
r
n
a
t
e
H
y
p
o
t
h
e
s
i
s
(
H
1
)
:
T
h
e
r
e
i
s
a
C
l
o
s
e
S
i
g
n
i
f
i
c
a
n
t
r
e
l
a
t
i
o
n
s
h
i
p
I
n
c
o
m
e
a
n
d
A
g
e
o
f
i
n
v
e
s
t
i
n
g
.
factor
calcula
Income Level
It is noted from the
calculated Chi-square
Page 9 of 13
Factor
Incom
e
Level
Calculated chisquare
6.978
value
Table value
21.026
12
Chart 1.2
Not
Significant
Page 10 of
13
Grand
Total
Below Rs.5000
14
14
44
Rs.5000 to Rs.6000
13
14
39
Rs.6000 to Rs.7000
11
13
13
45
Rs.7000 to Rs.8000
16
37
Above Rs.8000
Grand Total
6
45
11
68
13
58
5
29
35
200
factor
Income Level
Table value
Degree of
freedom
Remarks
21.026
12
Not
Significant
Chart 1.3
Page 11 of
13
Chi Square Analysis for Income Level And attitude About Financial Risk
Table - 12
Invest with Associated
Financial Risk
Reduces
Rate of Grand
Extra
with Playing
income level Risk
Returns Total
Money
in the Stock
Below Rs.5000
14
7
19
4
44
Rs.5000
to
15
5
15
4
39
Rs.6000
Rs.6000
to
9
11
16
9
45
Rs.7000
Rs.7000
to
7
7
17
37
Rs.8000
6
Above Rs.8000
6
6
15
8
35
Grand Total
51
36
82
31
200
Null Hypothesis (H0)
Factor
Income Level
Chart 1.4
Table value
21.026
Degree of
freedom
12
Remarks
Not
Significant
Page 12 of
13
Less
Risk
No
Willingnes
s
Tolerance Idea
12
19
16
13
9
69
23
7
16
14
12
72
Factor
Income Level
Grand
Total
9
44
13
39
13
45
10
37
14
35
59
200
: No Significant relationship
between
Income level and Risk Tolerance.
: There is Close Significant
relationship
Between Income level and Risk Tolerance.
15.507
Degree of
freedom
Remarks
Not
Significant
market.
Findings
not
are
of
Conclusion
The study is made to find out Risk
perception and portfolio management of equity
investors. The study reveals that the investors
in Tiruchirappalli city are not aware of
portfolio which would minimize risk and
maximize the return. And also it is clear that
the investors in Tiruchirappalli city have low
level of understanding about risk and the
importance of portfolio management as they
are not aware these factors. Hence proper
should to be taken in order to improve the
awareness level in the minds of the investors.
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