Abstract

- Investor s behaviour is influenced by many factors during investment decision making Demographic profile of investors is also one of the decision influencing factor among others The aim of this paper is to examine the effect of demographic factors on investors level of risk tolerance regarding the choice of investment 100 investors from twin cities of Pakistan Rawalpindi and Islamabad were selected as sample chi square test and correlation was conducted to explore the effect of demographic factors on investor s level of risk tolerance regarding the choice of investment Result of the paper showed that demographic factors of investors such as academic education income level investment knowledge and investment experience effect the investors level of risk tolerance while investors gender marital status occupation and family size showed no effect on investors level of risk tolerance These results are important for managers to advise their clients about better area of investment and risk level according to their demographic profile