Analyzing the impact of income levels and market volatility perception on investment patterns of retail investors in Ahmedabad city

Abstract

The influence of income levels and perceptions of market volatility on the investing habits of retail investors in Ahmedabad City is investigated in this research. In order to get a thorough knowledge of investing behaviour, a mixed-methods approach was used, which included quantitative and qualitative investigations. Statistical methods such logistic regression, chi-square tests, and analysis of variance were used to examine correlations among important factors after data was gathered from 500 individual investors via organised questionnaires. Those with higher incomes are more likely to trade and diversify their portfolios, according to the results, which show a clear income gap in investing habits. individuals who are positive on the market often have more diverse portfolios, according to the research, which also finds a strong correlation between how individuals perceive market volatility and their techniques for diversifying their investments. Financial advisers, lawmakers, and investors may all benefit from these findings as they provide light on retail investors' actions and patterns of thought on risk and how to tailor investment strategies to suit clients with varying income levels and comfort levels with uncertainty.