Alagappa Institute of Management, Alagappa University, Karaikudi-630 004.
It is very important that the marketers of the financial products should know the risk bearing capacity and expected return of investors. However predicting these two characteristics of investors is very difficult because many complex factors are involved in this process. This study attempts to list out the factors which are having impact on the expected rate of return of the investors. The relationship between expected return and demographic, psychological and investment characteristics of investors is analysed using chi-square test, analysis of variance, correspondence analysis and optimal scaling. In the end model is drawn showing relationship between different variables and expected return.
Expected return, Determinants of expected return, Characteristics of investors, Discriminating variable