Effect of Demographics on Investment Objectives

The markets have been moving from status to more of energy and are continuously changing the propaganda to risk. As the level of risk has been increasing, more and more money is at stake among different demographic profiles. This paper explores relationship between level of risk and demographic factors of investors. Depending upon risk appetite, there is an increase in number of investment avenues available for investors like bank deposits, government / private bonds, shares and stocks, mutual funds, insurance, derivatives, gold, silver, currencies, real estate, etc. Most of the investors' primary objective of investment is to earn capital appreciation and expected rate of return differs from individual to individual based on their level of market knowledge and risk taking ability. This paper further reveals that there is a negative correlation between Marital Status, Gender, Age, Educational Qualification and Occupation of the investors' also there is a positive correlation between Cities, Income Level and Knowledge of the investors'. This has been identified on the basis of cross analysis by applying Correlation analysis.