INFLUENCE OF RISK TOLERANCE ON ECONOMIC GROWTH OF A COUNTRY

Investment and Savings are two different mandatory factors influencing a nation's economic growth. The possibility and perception of this depends on the income, expenses and the surplus available for saving and investing in several forms. Investment in India is mostly done with less involvement of risk. It is termed as the tolerance of risk which includes the investor's attitude towards risk, willingness to accept investment uncertainties when financial investments are made. The risk tolerance varies with respect to aspects not restricted to age, income, gender, marital status, occupation and education. Risk acceptance level of the investor influences the investing decisions and thereby the performance of the stock market. This study was done with an intention to study the risk tolerance level of the investors by which the study of investors' behaviour also was studied mandatorily. From the study the factors influencing risk tolerance of the investors could be identified which gives a vivid picture about the investors' behaviour towards stock market in an Indian context that could be applicable to several other Asian countries also that practices similar lifestyle and beliefs.