Paper Details
A Study of Behavioral Insights into Risk Tolerance of Salaried Class Investors
Authors
Monika Rani, Dr Megha Narang
Abstract
This study seeks to examine the impact of demographic parameters like age, income, gender, and financial literacy on investing decisions by examining the behavioural insights into the risk tolerance of salaried class investors in Haryana. We used standardized questionnaires to learn about the investing habits, risk preferences, and psychological characteristics of 120 people. The results show that people's risk tolerance varies significantly with their income levels; those with higher incomes are more likely to invest in high-risk ventures than those with lower incomes. Younger salaried professionals also showed a greater willingness to take risks compared to their older counterparts. Additionally, there were noticeable gender inequalities; male investors tended to take on greater risk than female investors. Behavioural characteristics including loss aversion, overconfidence, and herd mentality are significant in influencing investment choices, according to the study. The study's findings give light on how to use these patterns of behaviour to improve financial literacy programs, personalized advice services, and product performance.
Keywords
Behavioural Insights, Risk Tolerance, Financial Literacy, Financial Decision-Making
Citation
A Study of Behavioral Insights into Risk Tolerance of Salaried Class Investors. Monika Rani, Dr Megha Narang. 2025. IJIRCT, Volume 11, Issue 1. Pages 1-7. https://www.ijirct.org/viewPaper.php?paperId=2502078