IMPACT OF DEMOGRAPHIC AND SOCIO-ECONOMIC FACTORS ON INVESTMENT PREFERENCES & RISK TOLERANCE OF QUALIFIED PROFESSIONALS WORKING IN MUMBAI
DOI:
https://doi.org/10.69980/d1qzg468Keywords:
Financial Knowledge, Behavioural Biases, Investment Preferences, Risk ToleranceAbstract
Over the years, the financial sector in India has seen tremendous transformation and evolution, including an increasing number of participants in capital markets, greater penetration of digital financial services, and the easy availability of online investment platforms, all of which have made investing more convenient than ever. With the increasing accountability for personal finance and financial management, knowledge of the factors affecting investment decision-making has become more important. Demographic and socio-economic factors are often seen as significant influencers of investment behaviour, but there is no evidence to support this, especially in the case of professionally qualified investors. It looks at the correlation between the demographic and socio-economic attributes and investment preference and risk appetite of qualified professionals. The approach used in this research is quantitative, and the data used are primary data obtained by distributing questionnaires to 350 respondents. Relationships among variables were examined using statistical analysis, including descriptive statistics and chi-square tests. The results show that none of the demographic and socio-economic characteristics are significantly related to investment preferences and risk-taking. There is, however, a significant influence of gender on both investment preferences and risk-taking behaviour, which reflects differences in financial decision-making between male and female respondents. The findings offer financial advisors and policy-makers important guidance in creating specific investment strategies and encouraging investment wisdom among professionals.
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