CKPIM Business Review

05

Authors: Dr. Aditya Srinivas and Dr. J. M. Kapadia

The paper covers the various real life scenarios faced by the investors who had invested in the financial products without understanding the risk and return profile of the product. The paper has covered in detail the recent scams that have affected the Indian capital market. The role of various regulatory bodies has also been discussed in detail. There is many a time over lap of regulations which affect the trust of the investors as ultimately they are not guided. The paper also covers the important incidents like misspelling in ULIP, NSEL scam and other current updates which would make the reader more aware about the working of the securities market.

10

Authors: Dr. Vijay Gondaliya and Mr. Govind Dhinaiya

The inspiration of this study was to support a prospective of risk tolerance capacity of equity investor and to give practical insights into the buying a particular stock with respect to their risk capacity. Assessing investor risk tolerance is one of the most important activities for financial planners. Identification and understanding of the degree of investment volatility an investor preference is necessary when recommending investment allocation strategies. The purpose of risk management is to identify risks that are important enough for investor to manage their uncertainty. Using chi-square analysis on investment experiments to obtain some evidences from a sample of 302 respondents in survey; our results indicate that investor’s risk tolerance capacity and acceptability are insignificant with relation to age, education and occupation while positively related to the income level. This finding implicates that investor with higher risk tolerance level shows higher income level and vice versa with relation to ability, acceptability and comfortability. Also, find that there is no association between age, education and occupation with risk tolerance ability, acceptability and comfortability.