Effect of Demographic Factors on Investment Decisions & Risk Taking Ability

India is expected to become the second largest global economy by 2050. Simultaneously with increase in global Indian wealth, increase in new investment avenues and financial liberalization, complications for individual to select right investment has increased and so is for Wealth Management Firms because such changes have posted challenges also with changing demography of their clients and its impact on their investment decisions. The study was conducted to identify the effect of demographic variables of individuals on their investment choice and risk taking. Survey of people from Kutch district was conducted through closed ended structured questionnaire. Mann-Whitney U, Kruskal Wallis & Pearson Chi Square test was conducted to analyse the effect of demographics on investment choice and risk taking ability. Demographic factor such as Gender, Age, Marital Status, Income & Occupation had affect on different investment avenues while only Occupation had affect on risk taking ability