EFFECTS OF DEMOGRAPHIC FACTORS AND PERSONALITY TRAITS ON FINANCIAL RISK TOLERANCE: A CASE STUDY OF PAKISTAN

The study attempts to explore a relationship between demographic factors of investors and their individual personality traits with risk tolerance in financial products investment. A highly reliable questionnaire is applied to collect data from 369 respondents. Multiple regression technique and various research procedures are applied for data analysis. The empirical results reveal that personality traits influence financial risk tolerance. Similarly, age, gender and monthly income possess a relationship with investment risk tolerance. Therefore, this study provides a guidance to financial managers involved in development of investment policies.