Investors’ risk profile analysis and their perception towards investing in stock market

Stock market is one of the economic indicators of growth of country's economic development. The bullish trend of stock market attracts many equity investors in the recent past days. Though many investors trade on their own, they require the experts help as investment tips to trade. The investor profile analysis (IPA) is a test conducted at financial institutions, to assess the risk profile of an investor and accordingly the investment tips to be given. The objective of this study is to tract the investors’ risk profile and their perception towards investing in stock market. A structured questionnaire was used to collect response from 400 respondents who are doing trading in Chennai, Bangalore and Coimbatore cities. Statistical tools like descriptive statistics, chi square test was applied in this study to test the investors’ risk profile and their preferences towards investing in stock market.. The result of the chi square test showed that, the demographic variables like gender, age, education & sources of income were significantly associated with type of investment, investment experience, stock selection, period of investment, investment objectives, and decision taken during uncertainty.