Appetite for financial risk: the importance of demographics as identifying and categorizing elements in retail investors’

Retail investor comprises of an important group in stock markets and their dynamic way of behaving is probably going to affect the securities market. Therefore, the behavior of the investors in the Indian capital market cannot be ignored. Various behavioral variables affect the decision making of investors. One of them is ‘Appetite for Financial Risk’. This study intends to investigate a number of variables that affect stock investors' willingness to take financial risks. A questionnaire is adopted, and information from 504 randomly chosen stock investors in punjab is gathered. The findings show that two key variables—"Investor underpinnings" and "Risk taking approach"—affect stock investors' ability to take risks. The findings further highlight how demographic factors including gender, marital status, degree of education, and financial Training affect investment decisions.