Portfolio Management and Risk Perception-A Study on Equity Investors in Hyderabad City

Abstract

Recognizing the significant factors impelling individual investor’s decision to create portfolio choices is vital to understand their different investment behaviour. This study discovers individual investor’s first choice for portfolio and as an interim measure investigates impacts of risk perception and risk tolerance on their investment decision. Precisely it has been decide socio-economic status difference in investment preference for portfolio choices with respect to investor’s income level and age. Analysis on investment experiments to acquire some evidences from a sample of 80 respondents in survey. The result shows that investor’s decisions to create their portfolio choices are considerably and negatively related to personal income level. This finding incriminates that investor with higher risk tolerance level shows higher likelihood to make their investment decision on portfolio choices it is found that male investor exhibits much preference on portfolio choices with higher percentage of total return.