Examining the influence of age and gender on risk tolerance and investment preferences of retail investors in Ahmedabad city

Abstract

The purpose of this research is to examine the relationship between gender and age in Ahmedabad City retail investors' risk tolerance and investing strategies. Combining quantitative and qualitative research, a mixed-methods approach was used to get complete insights on investing behaviour. Structured questionnaires were used to gather data from 500 retail investors. Significant associations were examined using statistical methods such logistic regression, chi-square tests, and ordinal regression. Investors in their twenties and thirties seemed to be more likely to take risks than those in their forties and fifties, suggesting a strong correlation between age and risk tolerance. Yet, there was no correlation between risk tolerance and investors aged 55 and above, which may indicate a change in focus when it comes to money. On top of that, there was a marked gender gap in the investing preferences of male and female investors; the former favoured commodities, cryptocurrencies, and individual stocks, while the latter favoured bonds and mutual funds. This research adds to our knowledge of retail investors' habits and may help policymakers and financial planners better target certain demographics with their investing strategy.